Blackstone’s hedge fund business has bought a minority stake in middle-market alternative asset manager GI Partners for an undisclosed sum.

GI Partners said the undisclosed stake was acquired by Blackstone’s Strategic Capital Group, a vehicle managed by Blackstone Alternative Asset Management (BAAM) that specialises in acquiring long-term interests in alternative managers.

The investment provides GI Partners with balance sheet capital to reinvest in the business and engage in strategic initiatives.

Rick Magnuson, founder and executive managing director of GI Partners, said: “This investment is a testament to the strength of the people and processes which have driven our success over the last two decades.

“We look forward to leveraging the partnership with Blackstone as we continue to grow and diversify the business for the benefit of our investors.”

Scott Soussa, head of Blackstone Alternative Asset Management’s Strategic Capital Group, said: Under Rick’s leadership, GI Partners has established itself as a leading firm in middle-market private equity and real estate investing.

“Their differentiated sourcing capabilities and strong operating expertise have led to sustained success since their founding and position the firm well for continued growth.”

Founded in 2001, GI Partners is a private investment firm based in San Francisco, California.

GI Partners has raised over $17bn in capital from institutional investors around the world to invest in private equity, real estate, and data infrastructure strategies.