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Blackstone Acquires Minority Stake in PAG

The firm has announced its third passive stake in a private equity firm in the past two weeks via its Strategic Capital Holdings Fund.

  • By Amanda Cantrell

Blackstone Group has taken a passive minority stake in Hong Kong-based alternative investment firm PAG via its Strategic Capital Holdings Fund.

PAG, founded in 2002, manages more than $20 billion in private equity, absolute return, and real estate strategies, according to a Blackstone statement Monday. Terms of the deal were not disclosed.

Blackstone's Strategic Capital Holdings Fund, which specializes in minority partnerships with alternative investment firms, is part of the firm's $75 billion Blackstone Alternative Asset Management business. The Strategic Capital Holdings Fund manages $3.3 billion.

"As a diversified asset manager operating in an attractive region, we believe PAG is well positioned for growth," said Scott Soussa, head of BAAM's Strategic Capital Group, in the statement.

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This is the third investment that Blackstone's Strategic Capital Holdings Fund has announced in the past two weeks. On Friday Blackstone said the fund had acquired a passive, minority stake in Kohlberg & Co., a Mount Kisco, New York-based middle-market private equity firm founded in 1987. Ten days before that, the fund said it had taken a passive, minority stake in Rockpoint Group, a global real estate private equity firm in Boston. Terms of those deals also were not disclosed.

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