Blackstone registers ninth fund

Harriet Matthews
17 December 2021

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Blackstone has filed a Luxembourg registration for its next flagship fund, Blackstone Capital Partners IX.

Bloomberg reported in October 2021 that the GP could be targeting up to USD 30bn for the fund.

Blackstone Capital Partners VIII held a final close in September 2019 on USD 26bn. Its flagship strategy generally backs buyouts with equity investments of USD 150m-2bn, dedicating two thirds of its capital to North America and the remainder to western Europe (25%) and Asia (15%), according to Unquote Data. The strategy focuses on the energy, financial services, healthcare, industrials, business services and technology sectors.

LPs in Blackstone VIII include various US public pension funds, with California State Teachers Retirement System (CalSTRS), California Public Employees Retirement System (Calpers) and Washington State Investment Board (WSIB) each committing USD 750m to the vehicle, according to Unquote Data. European LPs in the fund include Danish pension fund Pensiondanmark.

The firm raised USD 5.6bn for its second GP Stakes Fund in November 2021. The fund takes long-term, minority investments in the management companies of PE firms.

Blackstone registered Blackstone Growth II in October 2021 with a USD 10bn target. Its predecessor held a final close in March 2021 on USD 4.5bn.

According to Unquote sister publication Mergermarket, Blackstone is currently running a structured process to exit Germany-based measurement technology company Schenck Process. However, the sale had slowed by the start of December amid a lack of capacity on the parts of both buy-side and sell-side parties and advisers, Mergermarket reported.

If Blackstone IX does indeed reach USD 30bn, the fundraise is set to be one of the largest to date, according to Unquote Data. It would outstrip Hellman & Friedman Capital Partners X, which held a final close on USD 24.4bn in July 2021, as well as Silver Lake Partners VI, which closed on USD 20bn in January 2021.

In any case, the fundraise is set to form part of a busy 2022 pipeline. Fellow US sponsor Carlyle Group registered Carlyle Europe Technology Partners V in October 2021, according to Unquote Data. Meanwhile, KKR registered KKR Next Generation Technology Growth Fund III (NGT III) in August 2021.

Other fundraises lined up for the coming months include Nordic Capital XI, as reported, as well as Bain Capital Europe VI, as reported.

Blackstone declined to comment.