NEW YORK CITY—Blackstone Strategic Capital Holdings Fund has acquired a passive, minority equity stake in Rockpoint, a Boston-based real estate private equity firm. Although the two companies did not provide terms of the transaction in their joint announcement, Bloomberg reported the interest is about 20% according to people familiar with the deal.
The fund specializes in acquiring long-term interests in leading alternative asset managers and is managed by Blackstone Alternative Asset Management, the firm's hedge fund business.
Earlier this week, Blackstone REIT acquired the Canyon Industrial Portfolio for approximately $1.8 billion. It consisted of 146 last-mile infill warehouses and distribution buildings across the country. But Bloomberg reported that the Rockpoint deal is the first real estate stake that Blackstone Strategic Capital Holdings has taken. The news outlet noted that the fund owns stakes in hedge-fund firms Marathon Asset Management, Magnetar Capital Partners, Solus Alternative Asset Management and Senator Investment Group.
Rockpoint Group is headquartered in Boston with additional primary offices in San Francisco and Dallas. It has been active in the New York market, including its purchase of Starrett City and its acquisition of 1700 Broadway for $465 million.
“Blackstone's real estate business has had the privilege of working alongside Rockpoint on a number of debt and equity transactions over the years,” says Jon Gray, Blackstone president and COO. “It is an extraordinarily high quality and high integrity investment firm.”
Rockpoint's financial advisor was Evercore and Simpson Thacher provided legal counsel. Kirkland & Ellis served as legal counsel to Blackstone.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
