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Blackstone closed $5.6bn GP Stakes Fund II to take long-term minority investments in PE firms

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Global buyout giant Blackstone has held a $5.6bn final close for its second fund in GP stakes.

The new fund will specialise in value-added, long-term minority investments in management companies of leading private equity firms, the firm said.

Blackstone said it can leverage its buying power of the more than $150bn revenue base across its global procurement platform to help cost savings at portfolio company levels. It can also share internal business building resources and services with portfolio GPs.

Mike Nash, chairman of Blackstone GP Stakes said, “We have strong momentum in the GP Stakes market as we seek to invest with the most successful GPs across the private-market landscape. As long-term investors, we make it a priority to deliver Blackstone’s substantial resources and know-how to help them build enduring franchises.”

Just last week Blackstone bought into Boston-based private equity house Great Hill Partners as the latest purchase through its GP stakes investment unit.

In the summer the investment unit bought a stake in private equity house GTCR.

Blackstone joined GTCR the month before as majority shareholders in programmatic advertising and agency management software Simpli.fi in a deal that values the company at $1.5bn.

Blackstone was reportedly eyeing up to $10bn last month for one of the largest growth capital funds ever raised.

The move, which was reported by Bloomberg, came just a few months after the firm pulled in $4.5bn to close its debut fund in the strategy – the largest first-time growth equity private fundraise in history.

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