Blackstone multi-manager fund takes minority stake in Hong Kong-based PAG
Private equity firm first Asia investment for Blackstone’s US$3.3 billion fund
Blackstone has made a minority investment in Hong Kong-based alternative investment manager PAG through a fund that invests in several managers globally.
The investment through Blackstone’s Strategic Capital Holdings Fund, a multi-manager fund, in PAG, which has more than US$20 billion under management, has brought the fund’s investments to eight globally. The stake in PAG is the fund’s first investment in Asia.
The investment in PAG comes on the heels of two other minority investments that the US$3.3 billion fund has made this month – it has also invested in New York-based Kohlberg and Company, and the Boston-based global real estate manager, Rockpoint Group.
Neither Blackstone nor PAG disclosed any further details about the investment. But sources close to the company said Blackstone’s fund typically makes minority investments of between 15 per cent and 25 per cent in underlying alternative investment companies.
PAG’s private equity business focuses on large-scale buyouts, although it also makes minority investments. Its investment portfolios include companies such as Chinese online used car auction operator Chezhibao and US printer maker Lexmark International, among others. In Asia, it is also a leading real estate investment manager, having invested more than US$21 billion across 6,500 properties in the region.