Blackstone will receive preferred stock in the business which it can convert into common stock in three years if certain conditions are met.
The firm plans to help turn around the business, which has suffered from lower consumer spending in the wake of the financial crisis.
Crocs had more than $330m of cash and equivalents and very little debt at the end of September, an earlier report by Bloomberg said.
Last month it emerged Blackstone was active at the other end of the fashion scale, with the firm considering a bid for a minority stake in Italian fashion house Versace.
The group is expected to pick two or three potential investors by the end of the year before starting talks.
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