Blackstone has acquired a minority equity stake in Rockpoint, a Boston-based real estate investment firm. No financial terms were disclosed. Evercore was financial adviser to Rockpoint on the transaction.
NEW YORK–(BUSINESS WIRE)–Blackstone (NYSE: BX) and Rockpoint Group, L.L.C. (Rockpoint) announced today that Blackstone’s Strategic Capital Holdings Fund has acquired a passive, minority equity stake in Rockpoint, a Boston-based global real estate investment management firm. Terms of the transaction were not disclosed.
Rockpoint co-founder Bill Walton said: “This permanent capital investment by Blackstone is a testament to our team and investment programs. It will further strengthen our firm while preserving its entrepreneurial culture.”
Rockpoint co-founder Keith Gelb added: “We have great respect for Blackstone’s business and the brand it has established across asset classes. Our firms share a strong commitment to excellence and integrity. We look forward to having Blackstone as a partner.”
Blackstone’s Strategic Capital Holdings Fund, a permanent capital vehicle which specializes in acquiring long term interests in leading alternative asset managers, is managed by Blackstone Alternative Asset Management (BAAM), the firm’s hedge fund solutions business.
Scott Soussa, Head of BAAM’s Strategic Capital Group, said: “We are delighted Rockpoint chose Blackstone as its strategic partner. Rockpoint’s record of success, experienced team of professionals, extensive industry relationships and disciplined fundamental value investment approach set the firm apart and make this an especially exciting investment opportunity for Blackstone.”
Jon Gray, Blackstone President and COO, added: “Blackstone’s real estate business has had the privilege of working alongside Rockpoint on a number of debt and equity transactions over the years. It is an extraordinarily high-quality and high-integrity investment firm.”
Evercore served as financial advisor to Rockpoint. Kirkland & Ellis LLP served as legal counsel to Blackstone and Simpson Thacher served as legal counsel to Rockpoint.
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 asset management businesses, with over $430 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, 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.
Rockpoint Group, L.L.C. (Rockpoint) is a real estate private equity firm and Registered Investment Adviser with its headquarters in Boston and with additional primary offices in San Francisco and Dallas. Rockpoint employs a fundamental value approach to investing and focuses on select product types located primarily in major coastal markets in the United States. Rockpoint utilizes a consistent strategy across distinct return profiles through its opportunistic and growth and income investment programs. Rockpoint focuses on acquiring assets with intrinsic long-term value, at attractive prices relative to replacement cost and stabilized cash flows, and with particular emphasis on value creation opportunities and complex situations. Since 1994, Rockpoint’s co-founders with others have sponsored 13 commingled funds and related co-investment vehicles through Rockpoint and a predecessor firm. In total, they have raised approximately $19 billion in capital commitments and invested or committed to invest in 406 transactions with a total peak capitalization in excess of $54 billion (inclusive of fund equity, co-investor equity and debt).