(Breaking News) - Blackstone Inc., one of the world's largest private equity firms, is reportedly in advanced negotiations to acquire a minority stake in growth-equity investment firm FTV Capital. The move will further strengthen Blackstone's foothold in the fast-growing technology and financial services sectors.
According to sources familiar with the matter, the deal could be valued at over $500 million, although the exact terms of the transaction have not been disclosed.
FTV Capital, which was founded in 1998, focuses on investing in high-growth companies in the financial services, enterprise technology, and payments sectors. The firm has a strong track record of identifying and backing successful startups, with notable investments including CardConnect, Green Dot, and Payoneer.
The potential investment by Blackstone is seen as a significant vote of confidence in FTV Capital's investment strategy and management team. It also highlights the growing interest among private equity firms in growth-equity investments, which provide exposure to high-growth companies that are not yet ready to go public.
Blackstone has been actively expanding its footprint in the technology and financial services sectors in recent years. The firm has made a number of high-profile investments in companies such as Alibaba, Uber, and Bumble, among others.
The potential deal with FTV Capital comes as Blackstone's real estate income trust is facing challenges. The firm recently announced that it had blocked investors from cashing out their investments at the $71 billion trust, citing market volatility and uncertainty caused by the pandemic.
Despite these challenges, Blackstone remains one of the most successful private equity firms in the world, with a strong track record of delivering strong returns for its investors.
Investors in Breit property vehicle sought to withdraw $3.9bn in February, down from record in the previous month. This suggests that investors are still interested in investing in private equity firms, despite the challenges posed by the pandemic.
In a recent investor letter, Aristotle Capital Management, LLC, an investment management company, released its "Value Equity Strategy" fourth quarter 2022 investor. The letter highlights the importance of investing in high-growth companies with strong fundamentals, and notes that the technology and financial services sectors are among the most promising areas for investment.
Black Stone Minerals (NYSE:BSM) and Kimbell Royalty Partners (KRP) operate in the commodities space, and their earnings can fluctuate wildly. However, both companies have strong fundamentals and are well positioned to benefit from the ongoing recovery in the commodities markets.
Overall, the potential investment by Blackstone in FTV Capital is a positive development for the growth-equity investment sector. It highlights the growing interest among private equity firms in high-growth companies, and underscores the importance of investing in technology and financial services sectors.
