Sep. 4, 2014, 10:12 AM
- As rumored a couple of weeks back, Blackstone (NYSE:BX) has invested $150M in Hong Kong-based Arkkan Capital Management, run by the former head of Goldman's Special Situations Group.
- The investment could grow to $200M as Blackstone has committed another $50M, with Arkkan having the right to call before the end of June 2015.
- Arkkan opened for business on August 1 with just $20M in AUM and nine full-time employees. “Blackstone-backed managers have been able to substantially accelerate their asset growth without having to wait for three-year or five-year performance numbers," says an asset manager adviser.
- Previously: Blackstone reportedly in talks to buy Asia-focused fund
Sep. 1, 2014, 2:42 AM
- Carlyle Group (NASDAQ:CG) is now the last to settle allegations against the world’s largest private equity groups, which previously accused the firms of conspiring to fix the prices of LBOs.
- Although Carlyle has now agreed to pay $115M, it still denies wrongdoing and does not regard the settlement as an admission of guilt.
- The decision follows similar settlements from the Blackstone Group (NYSE:BX), Goldman Sachs (NYSE:GS), KKR (NYSE:KKR), Bain Capital, Silver Lake Partners and TPG Capital, which were all accused of conspiring not to jump each others' deals.
Aug. 28, 2014, 3:36 PM
- The 42-story, 1.2M square foot office tower at 1095 Avenue of the Americas - soon to be the headquarters of Verizon Communications - could fetch $2.25B, reports Bloomberg
- Blackstone (BX +1.1%) owns the property by dint of its $39M 2007 purchase of Equity Office Properties Trust.
- A sale price of over $2B would mark the biggest single U.S. property sale since the GM building sold to Boston Properties in 2008 (that building is now valued at about $3.4B).
Aug. 28, 2014, 3:17 PM
- Blackstone (BX +1.3%) was able to lure talent from the likes of Ziff Brothers Investments and Serengeti Asset Management and the new teams will each be given $100M, the permission to leverage that amount 4x, and a long leash.
- Eventually Blackstone hopes to have up to 30 separate teams, each starting out with at least $100M.
- The name of the hedge fund will be Blackstone Senfina Advisors (Senfina means "everlasting" in Esperanto).
- The new traders aren't Blackstone employees, but can only manage money from the P-E firms clients. They'll be paid on a flat percentage management fee based on AUM, but the big cheese will come from bonuses tied to performance that needs to beat stock market averages.
Aug. 27, 2014, 9:50 AM
- Blackstone (NYSE:BX) purchased Vivint in 2012 for $2B and is no doubt eying the lofty valuation of SolarCity (Vivint trails just SolarCity as the country's largest residential solar installer).
- Vivint plans to raise $200M with the offering, and at least part of the proceeds will go towards paying down debt. The stock will trade on the NYSE under the ticker symbol VSLR.
Aug. 22, 2014, 10:34 AM
- Hong Kong-based Arkkan Capital Management was started by Jason Brown, a former head of Goldman Sachs' Special Situation Group. If Blackstone (BX -0.9%) gets involved, it would be the P-E firm's 2nd backing of an Asia-based hedge fund since 2008, and the previous deal - with Senrigan Capital - allowed that fund to grow AUM to more than $1B in less than two years.
- Brown ran Goldman's Special Situations Group - known as SSG - between 2011 and his departure last year.
Aug. 18, 2014, 1:44 AM
- Private equity firms The Blackstone Group (NYSE:BX) and TPG Capital are closing in on deal to purchase subprime mortgage lender Kensington, Sky News reports.
- Kensington is owned by Investec (OTC:IVTJY), which bought the company for £283M ($473M) in 2007 just as the financial markets began to seize up.
- The takeover has not yet been finalized, but insiders say the deal is likely to be announced this week.
Aug. 15, 2014, 3:36 PM
- Heartland Food is the second-largest owner of Burger King restaurants with about 330 locations in eight Midwest states. Blackstone (NYSE:BX) is the owner by dint of its 2008 GSO Capital Partners acquisition.
- Heartland has annual sales of more than $420M, but things are sluggish in the fast-food world, with sales rising just 0.7% last year according to IBISWorld. Burger King Worldwide (NYSE:BKW) said its revenue fell 6.1% to $261.2M in Q2.
- Burger King "supports Heartlands efforts and will work closely with its leadership moving forward," says a BKW spokesman.
Aug. 14, 2014, 8:53 AM
- Blackstone (NYSE:BX) and its Vine Oil & Gas partnership confirm an agreement to acquire Royal Dutch Shell’s (RDS.A, RDS.B) Haynesville assets for $1.2B.
- The assets comprise more than 107K net acres in north Louisiana in the core of the Haynesville Shale natural gas shale basin.
- Combined with the just announced sale of Pinedale gas assets in Wyoming, Shell amassed $2.1B in cash and added acreage in the Marcellus and Utica shale plays in Pennsylvania.
Aug. 13, 2014, 1:31 PM
- Shares of SeaWorld Entertainment (SEAS -33.9%) crash to below $20 as the company openly acknowledges that the documentary Blackfish kickstarted a damaging lobbying campaign against the captivity of Orca which has hurt park traffic.
- The stock traded in the upper $30s before the PBS show first aired.
- Blackstone (BX) reportedly turned down several bids over the years for its sizable stake in SeaWorld, preferring to launch an IPO early last summer.
Aug. 11, 2014, 1:44 AM
- Blackstone (NYSE:BX) is nearing a deal to buy Royal Dutch Shell's (RDS.A, RDS.B) 50% stake in the Haynesville Shale formation for $1.2B.
- The gas field lies under large parts of Louisiana and Texas, and is also 50% owned by Encana (NYSE:ECA).
- A deal would add to Blackstone's energy holdings in Louisiana. In February 2012, Blackstone agreed to invest $2B in Cheniere Energy Partners, helping the company construct a gas-liquefaction plant in Louisiana for export markets.
Aug. 7, 2014, 12:35 PM
- Blackstone (NYSE:BX), KKR, and TPG Capital have reportedly agreed to pay $325M to make go away a lawsuit accusing them of conspiring not to outbid each other on buyouts. None will admit wrongdoing as part of the settlement.
- The case was brought by investors who sold shares in 27 companies to a number of P-E firms. Goldman, Bain Capital, and Silver Lake all previously settled.
Jul. 31, 2014, 10:54 AM
- Blackstone (BX -2.2%) has asked banks to pitch refinancing proposals for Center Parcs - the U.K. vacation-parks operator - ahead of an expected IPO next year, reports Bloomberg. Among the options Blackstone is looking at would be using the financing to pay itself about a $500M dividend.
- Sources caution no final decision has been made and advisors have yet to be appointed.
Jul. 28, 2014, 7:08 AM
- Adding to its London investments inside its "core plus strategy," Blackstone (NYSE:BX) buys the 330K square foot building in London's financial district from Brookfield Property Partners (NYSE:BPY) for $543M.
- For Brookfield, the proceeds will be reinvested into its City development program.
- It's a seller's market in London, with rents in the best office buildings up 9% last year and expected to rise a similar amount in 2014.
Jul. 23, 2014, 8:38 AM
- Established in 1976 and HQ'd in Dallas, Service King operates 177 locations in 20 states, and is currently owned by Carlyle Group (NASDAQ:CG) and company management and employees. The company had 47 locations when Carlyle got involved in 2012. Carlyle will retain a sizable minority stake in Service King.
- The deal with Blackstone (NYSE:BX) is expected to close in Q3 and terms were not disclosed.
- Source: Press Release
Jul. 22, 2014, 3:55 AM
- Blackstone (NYSE:BX) has agreed to buy U.K real estate business Max Property for £414M ($707M) in cash. Max Property focuses its operations on property flipping - reselling buildings at a profit after renovations or improvements.
- The acquisition will be executed by Marina Topco, a group controlled by Blackstone Real Estate Partners Europe.
- Currently, Blackstone manages $80.4B of total real estate assets, including about $10B of debt.
BX vs. ETF Alternatives
Blackstone Group LP is an alternative asset manager. It also provides financial advisory services, including corporate and mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement services.
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