Blackstone’s hedge fund arm has taken a minority equity stake in US real estate investment manager Rockpoint Group.
The investment was made by Blackstone’s Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM) that specialises in acquiring interests in alternative asset managers.
Terms of the transaction were not disclosed.
Bill Walton, co-founder of Boston-based Rockpoint, said: “This permanent capital investment by Blackstone is a testament to our team and investment programmes. It will further strengthen our firm while preserving its entrepreneurial culture.”
Fellow founder Keith Gelb said: “We have great respect for Blackstone’s business and the brand it has established across asset classes. Our firms share a strong commitment to excellence and integrity.”
Scott Soussa, head of BAAM’s strategic capital group, said: “Rockpoint’s record of success, experienced team of professionals, extensive industry relationships and disciplined fundamental value investment approach set the firm apart and make this an especially exciting investment opportunity for Blackstone.”
Jon Gray, former head of real estate and recently-appointed president of Blackstone, said: “Blackstone’s real estate business has had the privilege of working alongside Rockpoint on a number of debt and equity transactions over the years.
“It is an extraordinarily high-quality and high-integrity investment firm.”