GTCR LLC and Blackstone (NYSE:BX) today jointly announced a new partnership in which funds managed by Blackstone’s GP Stakes business will acquire a minority ownership interest in GTCR. Blackstone’s GP Stakes business specializes in value-added, long-term partnerships with leading private-market alternative asset management firms.
On behalf of the Managing Directors of GTCR, Collin Roche and Dean Mihas released a statement:
“We are thrilled to have this opportunity to work with Blackstone as a passive minority investor in our firm. Blackstone is an exceptional institution and we expect they will bring resources and perspective that will help us as we continue to serve our limited partners, build our franchise and invest our funds over the long term.
In particular, we believe that this investment partnership will further enhance our ability to serve the interests of our limited partners, our management partners and our investment team and staff. Our top priority at GTCR has always been to serve our limited partners by working to generate strong and consistent investment returns through the disciplined application of our investment strategy. As part of GTCR’s Leaders StrategyTM, we seek to identify and partner with talented, accomplished executives with whom we work collaboratively to build and grow our portfolio companies. Finally, we have a talented group of investment professionals and staff, and we are dedicated to providing our team with the most opportunity for professional growth and impact, while working in a collaborative and inclusive environment. We appreciate the support from Blackstone as we maintain our focus on these key constituents while growing the firm’s opportunity set.”
Mustafa M. Siddiqui, Head of Blackstone’s GP Stakes business said, “GTCR has developed one of the most respected investment franchises in the private equity industry. The firm has a world-class group of leaders and investment professionals, a differentiated investment approach and a long history of success. I have been personally gratified to develop rapport with the GTCR team, and we look forward to our long-term partnership.”
Ward Young, GP Stakes Managing Director added, “Our top priority is to partner with the most successful general partners in private equity. We are especially impressed with GTCR’s strategy of investing in transformative growth behind talented executives. We are pleased to support GTCR’s ongoing success.”
GTCR is a leading growth-oriented private equity firm with a management-driven approach and business-building investment orientation. In 2020, GTCR closed on its thirteenth equity fund, GTCR Fund XIII, with $7.5 billion of limited partner capital commitments. The partnership will provide GTCR’s portfolio companies with access to Blackstone’s group purchasing program, which leverages the buying power of the $150 billion revenue base across Blackstone’s entire investment platform. GTCR will also have access to a wide range of other services Blackstone provides internally and to its portfolio companies that leverage Blackstone’s scale and expertise, including its ESG, sustainability, human capital management, cybersecurity, and product development capabilities.
Evercore served as financial advisor to GTCR. Kirkland & Ellis served as legal counsel to GTCR and Fried Frank served as legal counsel to Blackstone.
Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Financial Services & Technology, Growth Business Services, Healthcare, and Technology, Media & Telecommunications industries. The Chicago-based firm pioneered The Leaders Strategy™ – finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth. Since its inception, GTCR has invested more than $20 billion in over 250 companies. For more information, please visit www.gtcr.com. Follow GTCR on www.linkedin.com/company/gtcr-llc/.
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 $684 billion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, 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.