Blackstone Announces $4.5 Billion Final Close of Blackstone Growth (BXG) Fund, Largest First-time Growth Equity Vehicle in History

Rhea-AI Summary

Blackstone (NYSE: BX) has announced the final closing of Blackstone Growth (BXG), its first growth equity fund, at a hard cap of $4.5 billion. The fund was oversubscribed and attracted investments from diverse sources including family offices, pension funds, and high-net-worth individuals, marking it as the largest first-time growth equity fund ever raised.

Since its inception in 2020, BXG has made significant investments in companies like Bumble and Oatly. BXG aims to support growth-stage entrepreneurs by providing a concentrated portfolio approach and access to Blackstone's extensive resources.

Positive

• BXG closed at a hard cap of $4.5 billion, the largest first-time growth equity fund in history.
• The fund attracted investments from a diverse range of institutional and individual investors.
• BXG's portfolio includes significant companies like Bumble and Oatly, indicating strong investment potential.
• The approach focuses on a concentrated portfolio, allowing for greater operational value to individual companies.

Negative

• None.

Blackstone (NYSE: BX) today announced the final close of Blackstone Growth (BXG), its inaugural growth equity fund. BXG was oversubscribed and closed at its hard cap of $4.5 billion – with third-party capital commitments from a wide range of family offices, entrepreneurs, endowments, strategic institutional investors, pension funds, high-net-worth individuals, and other investors – making it the largest first-time growth equity private fund raised in history.

Blackstone Growth, Blackstone’s global growth equity business, invests in fast-growing companies, helping them expand their potential through the power of the Blackstone platform. Leveraging Blackstone’s extensive operational resources and network, BXG focuses on providing capital to entrepreneurs seeking to minimize the execution risks associated with high-growth environments.

Since it began investing in 2020, BXG has already made a number of significant investments, including in the online dating company Bumble that recently completed a successful initial public offering; oat milk pioneer, Oatly; leading enterprise software business, ISN; and, Epidemic Sound, which delivers restriction-free music to internet content creators across the globe.

Jon Korngold, Global Head of Blackstone Growth, said: “The scale of the resources, operational expertise, and capital that Blackstone can deliver to growth-stage entrepreneurs is a clear differentiator. This new approach to growth equity has already created significant value for the companies we’ve backed, and we are pleased that it has been well-received by a wide range of global investors. We are excited to continue partnering with entrepreneurs around the world as we help them transform their businesses from regional champions into global industry leaders.”

In establishing this business, BXG has sought to reimagine growth equity investing given it began without the encumbrances of a legacy portfolio or an organizational structure that results in an excessive number of portfolio companies. BXG believes that its concentrated approach to portfolio construction, which focuses on a far more curated number of companies than what is typical of growth equity firms, will allow it to deliver more significant operational value to the individual companies in which it invests.

Through BXG, Blackstone can offer growth-stage entrepreneurs potential access to its more than 100 operating professionals and advisors, a group procurement program that purchases on behalf of portfolio companies with more than 450,000 employees, a dedicated team responsible for identifying opportunities for its businesses to sell to its global portfolio companies with more than $160 billion of combined revenue, more than 880 million square feet of eCommerce logistics assets, its team of dozens of data scientists, and insights gleaned from 25 offices throughout the world.

BXG – which has employees based in New York, San Francisco, and London – seeks to invest in companies with proven business models and with the potential to become global market leaders in partnership with Blackstone. BXG’s primary sector focuses include Financial Services, Enterprise and Consumer Technologies, Healthcare, and Consumer.

About Blackstone

Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our $619 billion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

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FAQ

What is the total amount Blackstone's growth equity fund BXG raised?

Blackstone's growth equity fund BXG raised a total of $4.5 billion.

When did Blackstone Growth (BXG) begin investing?

Blackstone Growth (BXG) began investing in 2020.

What companies have received investment from BXG?

BXG has invested in companies like Bumble and Oatly.

What is the primary focus of Blackstone Growth (BXG)?

BXG primarily focuses on investing in fast-growing companies in sectors like Financial Services, Enterprise and Consumer Technologies, Healthcare, and Consumer.

Where are BXG's employees based?

BXG has employees based in New York, San Francisco, and London.