New York, July 16, 2002: The Blackstone Group today announced that it has received capital commitments for its latest private equity fund, Blackstone Capital Partners IV, of approximately $6.45 billion, making it the largest private equity fund ever raised.
The initial target for BCP IV, which commenced its fund-raising process in the spring of 2001, was $5 billion. BCP III, Blackstone’s current private equity fund, raised total capital commitments of approximately $4 billion in 1997.
“This level of commitment is a very strong endorsement of the firm at a time when fund-raising of almost all types has been extremely difficult,” said Stephen A. Schwarzman, President and CEO of The Blackstone Group. He added, “What is particularly gratifying is that investors representing almost 90% of the capital raised for BCP III have reinvested in BCP IV. In addition, almost half of the investors in this new fund are investing with Blackstone for the first time, including a large number from outside the United States.”
Beside this very strong level of support, a number of factors contributed towards the success of the fundraising: They include the firm’s long-term track record in the private equity area, its strong private equity team, and its investment approach which focuses on making investments with proven management teams, often in partnership with major global corporations. These corporate partnerships comprise over 50% of the firm’s total investments and have involved such companies as AT&T, AOL Time Warner, Marsh & McLennan, Sony, Union Carbide, Union Pacific, and Wellington Underwriting.
Mr. Schwarzman went on to say that “The prospects for investing the fund are particularly opportune given the global dislocation of stock markets and the need for corporations to raise capital by selling assets. The new deal pipeline is beginning to flow again, and at significantly more realistic valuations compared to the last several years. We have always been value-oriented investors, an approach which we believe will continue to serve our investors well, particularly at this stage in the cycle when the global economies rebound from recession.”
This new fund will bring the total amount of funds raised by The Blackstone Group for corporate private equity investing to over $14 billion. The total capital committed across all of the firm’s alternative asset investing businesses (private equity, real estate, corporate debt, and marketable alternative asset management) is now around $25 billion.
The Blackstone Group was represented in its fund-raising for certain new investors outside the United States by UBS Warburg, and in the United States by Credit Suisse First Boston Corporation.
About The Blackstone Group
The Blackstone Group, a private investment bank with offices in New York and London, was founded in 1985 by its Chairman, Peter G. Peterson, and its President and CEO, Stephen A. Schwarzman. The Blackstone Group’s six core businesses are Corporate Private Equity Investing, Real Estate Private Equity Investing, Corporate Debt Investing, Marketable Alternative Asset Management, Mergers & Acquisitions Advisory, and Restructuring & Reorganization Advisory.