Blackstone Plans to Sell Over $2B in Private Equity Stakes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: seekingalpha
- Transaction Scale Test: Blackstone is attempting to sell over $2 billion in stakes in private investment funds, which would be one of the largest deals of its kind, aimed at testing investor interest in aging private equity vehicles, thereby impacting market confidence.
- Innovative Financing Structure: The firm is marketing a collateralized fund obligation that packages over $2 billion of stakes in leveraged buyout funds into bonds for sale to investors and insurers, potentially providing cash inflows to the Blackstone Strategic Partner fund and enhancing its investment capacity.
- Market Demand Uncertainty: Although Blackstone is still in the early marketing and structuring phase of the transaction, it remains unclear whether there will be demand for the equity tranche of the CFO, which could affect the final outcome of the deal and Blackstone's liquidity.
- Stock Price Reaction: Following the announcement, Blackstone's stock gained 0.7% in premarket trading, indicating an initial positive market reaction to the deal, which may reflect investor confidence in Blackstone's future performance.
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Analyst Views on BX
Wall Street analysts forecast BX stock price to rise
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 120.290
Low
166.00
Averages
176.60
High
205.00
Current: 120.290
Low
166.00
Averages
176.60
High
205.00
About BX
Blackstone Inc. is an alternative asset manager. Its asset management includes global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries, and hedge funds. Its Real Estate segment comprises its management of opportunistic real estate funds, Core+ real estate funds, and real estate debt strategies. Its Private Equity segment includes its management of flagship Corporate Private Equity funds, sector and geographically focused Corporate Private Equity funds, core private equity funds, an investment platform, and others. Its Credit & Insurance segment consists of Blackstone Credit & Insurance, which is organized into three overarching strategies: private corporate credit, liquid corporate credit and infrastructure and asset-based credit. Its Multi-Asset Investing segment is organized into four investment platforms: Absolute Return, Multi-Strategy, Total Portfolio Management, and Public Real Assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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