Blackstone hits final close of maiden growth equity vehicle

Global investment firm Blackstone has hit the final close of its maiden growth equity fund Blackstone Growth (BXG), the company said in a statement.

The firm said that the fund was oversubscribed and closed at its hard cap of $4.5 billion. It saw participation from family offices, entrepreneurs, endowments, strategic institutional investors, pension funds, high-net-worth individuals, and other investors.

BXG focuses on providing capital to entrepreneurs seeking to minimise execution risks associated with high-growth environments.

Since it began investing in 2020, BXG has made a number of investments including in online dating company Bumble; oat milk pioneer Oatly; enterprise software business ISN and Epidemic Sound, which delivers restriction-free music to internet content creators across the globe.

“The scale of the resources, operational expertise and capital that Blackstone can deliver to growth-stage entrepreneurs is a clear differentiator. This new approach to growth equity has already created significant value for the companies we’ve backed,” said Jon Korngold, global head, BXG.

The growth equity fund will invest in companies with proven business models and with the potential to become global market leaders in partnership with Blackstone. 

BXG’s primary sector focus includes financial services, enterprise and consumer technologies, healthcare and consumer.

Blackstone has $619 billion in assets under management across 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.