Please ensure Javascript is enabled for purposes of website accessibility

Blackstone to Buy Credit Suisse Private Equity Business

By Rich Smith - Apr 23, 2013 at 10:20AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Strategic Partners brings Blackstone $9 billion in assets under management.

Private equity powerhouse Blackstone (BX) has agreed to acquire Credit Suisse's (CS 0.14%) Strategic Partners secondary private equity business for an undisclosed sum, the company announced yesterday.

Strategic Partners has $9 billion in assets under management (AUM). At the rule-of-thumb valuation of 2% of AUM, this would suggest the business might have sold for $180 million or more -- but the parties are keeping mum on the precise dollar value for now.

What is known is that Credit Suisse has been implementing "strategic divestments" of some of its businesses since last summer, Strategic Partners among them.

Strategic Partners' business model involves buying secondary interests in private equity funds from other investors who already hold such interests. Since 2000, Strategic Partners has raised more than $11 billion of capital commitments, completed more than 700 transactions, and acquired more than 1,400 underlying limited partnership interests from other parties. Its performance has been in the top quartile among its peers. Strategic Partners is staffed by 26 secondary investment professionals, and headed by Stephen Can and Verdun Perry.

The deal is expected to close by the third quarter.

link

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Blackstone Group L.P. Stock Quote
The Blackstone Group L.P.
BX
Credit Suisse Group AG Stock Quote
Credit Suisse Group AG
CS
$7.07 (0.14%) $0.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
322%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.