Profile: Blackstone Group LP (BX.N)
The Blackstone Group L.P. (Blackstone), incorporated on March 12, 2007, is a manager of private capital and provider of financial advisory services. The Company is an independent manager of private capital worldwide, with assets under management of $210.2 billion as of December 31, 2012. Its alternative asset management businesses include the management of private equity funds, real estate funds, funds of hedge funds, credit-oriented funds, collateralized loan obligation (CLO) vehicles and separately managed accounts. It also provides a range of financial advisory services, including financial advisory, restructuring and reorganization and fund placement services. It operates in five segments: Private Equity, Real Estate, Hedge Fund Solutions, Credit Businesses, and Financial Advisory. On January 5, 2012, GSO Capital Partners LP (GSO) acquired Harbourmaster Capital (Holdings) Limited (Harbourmaster). In May 2012, the Company expanded its property presence in London, buying the 12 building Devonshire Square office and retail complex from rival Rockpoint and the Abu Dhabi Investment Authority. In November 2012, the Company acquired GCA Services Group, facility services company in the United States, from Nautic Partners, L.L.C. In November 2012, Blackstone acquired Vivint. The acquisition includes three primary assets Vivint, Vivint Solar and 2GIG Technologies. In February 2013, it announced that a private equity fund managed by Blackstone acquired a controlling interest in two Maldives-based seaplane operators - Maldivian Air Taxi (MAT) and Trans Maldivian Airways (TMA). In August 2013, Blackstone Group LP and Credit Suisse announced that Blackstone closed on its acquisition of Strategic Partners from Credit Suisse. Effective September 30, 2013, Blackstone Group LP acquired ThoughtFocus Technologies LLC. Effective October 3, 2013, Blackstone Group LP acquired Multi Corporation BV. Effective October 23, 2013, Blackstone Group LP acquired a 40% stake in Eletson Gas LLC. Effective October 28, 2013, Blackstone Group LP acquired Asclepius Group Ltd.
Private Equity Segment
The Company’s Private Equity segment is a worldwide business with offices in New York, London, Menlo Park, Mumbai, Hong Kong, Singapore, Beijing and Shanghai. The Company manages six general private equity funds, as well as two fund focusing on communications-related investments. As of December 31, 2012, the Company was in the process of raising and investing capital for its energy-focused private equity fund. The Company’s private equity funds, which it refers to collectively as the Blackstone Capital Partners (BCP) funds, invest primarily in control-oriented, privately negotiated investments. As of December 31, 2012, its Private Equity segment had $56.7 billion of assets under management, or 28%, of its total assets under management.
Real Estate Segment
The Company is engaged in real estate investing. It manages a range of real estate funds. Its real estate funds, which it refers to as the Blackstone Real Estate Partners (BREP) funds, has made investments in lodging, urban office buildings, shopping centers and a variety of real estate operating companies. The BREP funds invest primarily in control-oriented, privately negotiated real estate investments. In addition, its real estate debt-investment funds, which it refers to generally as the Blackstone Real Estate Debt Strategies (BREDS) funds, focuses on non-controlling real estate debt-related investments in the public and private markets, primarily in the United States and Europe. In addition, it manages Bank of America Merrill Lynch’s Asian real estate assets, as well as an investment fund focusing on Asian real estate assets. The Real Estate segment has offices in New York, Chicago, Los Angeles, London, Paris, Mumbai, Tokyo, Hong Kong, Singapore and Seoul. As of December 31, 2012, its Real Estate segment had $56.7 billion of assets under management.
Hedge Fund Solutions
The Company’s funds of hedge funds group, which it refers to as Blackstone Alternative Asset Management (BAAM), manages a range of commingled funds of hedge funds and vehicles. It has offices in New York, London, Hong Kong and Sydney. As of December 31, 2012, its Hedge Fund Solutions operation had $46.1 billion of assets under management.
The Company’s credit-oriented funds, CLOs, credit-focused separately managed accounts and publicly registered debt-focused investment companies are managed by its subsidiary, GSO. GSO has $37 billion of assets under management as of December 31, 2011, or 22%, of its total assets under management. Its credit-oriented businesses have offices in New York, London and Houston. The credit-oriented funds it manages or advises include senior credit-oriented funds, distressed debt funds, mezzanine funds and general credit-oriented funds focused on the leveraged finance marketplace. In addition, GSO manages a range of credit-oriented separately managed accounts and publicly registered investment companies. These vehicles have investment portfolios, which consists of loans and securities, including senior debt, subordinated debt, preferred stock and common equity. GSO managed 37 separate CLOs as of December 31, 2011 with total assets under management of $16.1 billion focused primarily on senior secured debt issued by a universe of non-investment grade companies.
Financial Advisory Segment
The Company’s Financial Advisory segment consists of its financial and advisory services, restructuring and reorganization advisory services and Park Hill Group, which provides fund placement services for alternative investment funds. Its financial advisory businesses are worldwide businesses with offices in New York, Atlanta, Chicago, Dallas, Boston, Los Angeles, San Francisco, Menlo Park, London, Paris, Hong Kong, Beijing and Tokyo. Its financial and advisory business, Blackstone Advisory Partners L.P. is an independent provider of solutions in complex and critical financial advisory assignments. Its clients include Aluminum Corporation of China, American International Group, Inc. (AIG), Bank of America Corporation, E.ON AG, GDF Suez S.A., Nestle S.A, Noble Group Limited, The Procter & Gamble Company, Publicis Groupe S.A., Sealed Air Corporation and Xerox Corporation.
The Company’s restructuring and reorganization advisory group is an adviser in both out-of-court restructurings and in-court bankruptcies. With offices in New York and London, its restructuring and reorganization advisory group advises companies, creditors, corporate parents, hedge funds, financial sponsors and acquirers of troubled companies. Its clients include Abitibi Bowater, Alliance Medical, Angiotech, Centaur Gaming, Lee Enterprises, Los Angeles Dodgers, Punch Taverns, Viridian and W.R. Grace. Park Hill Group provides fund placement services for private equity funds, real estate funds, venture capital funds and hedge funds. Park Hill Group primarily provides placement services to unrelated third-party sponsored funds.
Blackstone Group LP
345 Park Avenue
NEW YORK NY 10154