Blackstone Announces Agreement to Acquire DCI, a Pioneer in Technology-driven, Quantitative Credit Investing

Rhea-AI Summary

Blackstone (NYSE:BX) announced its acquisition of DCI, a leader in quantitative credit investing with $7.5 billion in AUM. This deal enhances Blackstone Credit's capabilities in high yield and investment grade sectors, integrating DCI's technology-driven models and increasing investor access via a UCITs platform. DCI's experienced team, recognized in quantitative fixed income research, will benefit from Blackstone's extensive resources, aiming to deliver differentiated returns for clients. This strategic move is expected to bolster Blackstone's presence in the corporate credit market.

Positive

• Acquisition of DCI enhances Blackstone Credit's capabilities in high yield and investment grade sectors.
• Integration of DCI's technology-driven models expected to improve returns.
• Access to increased investor base via UCITs platform.
• Strengthened team of experts in quantitative fixed income research.

Negative

• None.

NEW YORK--(BUSINESS WIRE)--Blackstone (NYSE:BX) today announced that it has agreed to acquire DCI, a pioneer in quantitative credit investing with approximately $7.5 billion in AUM across the global investment grade, high yield and emerging corporate credit markets. The firm, based in San Francisco, applies a proprietary, fundamental-based, technology-driven model to deliver differentiated returns to clients. DCI is led by a team of seasoned professionals who are recognized experts in quantitative and systematic fixed income research.

DCI will become part of Blackstone Credit, a global leader in private lending, syndicated leveraged loans and collateralized loan obligations. The transaction will broaden Blackstone Credit’s capabilities in high yield and investment grade, enable the integration of DCI’s models and technology across the combined Blackstone Credit and DCI platforms and increase access to investors via a UCITs platform. DCI’s investment process will benefit from Blackstone’s resources, scale and deep relationships across global financial markets.

Dwight Scott, Global Head of Blackstone Credit, said: “DCI has a more than 15-year track record of developing and applying technology-driven strategies and is at the forefront of the evolution towards quantitative investing in the corporate bond market. DCI will strengthen and differentiate the solutions we provide to our retail, institutional and insurance clients.”

Tim Kasta, CEO of DCI, said: “Joining Blackstone Credit will provide DCI’s team and investors with access to unparalleled institutional resources and asset management expertise and accelerate the development of innovative solutions in corporate credit.”

Blackstone Credit is one of the world’s largest credit-focused asset managers, with $135 billion in AUM and a team of over 350 professionals (as of September 30, 2020). Its strategies cover the corporate credit market, with leading positions in both liquid and private markets.

About DCI

DCI is an independent asset management firm specializing in investment grade, high yield, and emerging market corporate credit strategies. The firm manages long-only and long/short strategies for some of the world's largest institutional and private wealth investors. DCI deploys a fundamental based, systematic approach seeking to exploit potential inefficiencies in the corporate credit markets. DCI was awarded the Hedge Fund Journal's "Corporate Credit - Market Neutral, Best Performing Fund in 2019 and over 2, 3, 4, 5, and 7 Year Periods" for the DCI Market Neutral Credit Fund (UCITS). This is the 4th consecutive year DCI has been presented with this award. DCI was co-founded in 2004 by Stephen Kealhofer, Mac McQuown and David Solo.

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 $584 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.