As one of the world’s largest investment firms, N.Y.-based Blackstone is regularly sought out for its deep-dive analysis on global markets—from unexpected events that shape the political, economic and financial landscape to indicators that move the needle on growth or decline across industries, influences, and societal trends. With offices across the U.S., Europe and Asia, Blackstone manages a ginormous number of investments that span real estate, finance, insurance, life sciences, innovations, infrastructure and more to the tune of $430 billion in assets. Simply put, Blackstone is an equity powerhouse.
The Blackstone Group
The Blackstone Group Inc. is an American multinational private equity, alternative asset management, and financial services firm based in New York City. As the largest alternative investment firm in the world, Blackstone specializes in private equity, credit, and hedge fund investment strategies.
In the infrastructure realm, the firm invests across every sector, including transportation, communications, waste and water, and energy. Raising a whopping $14 billion for the debut of its “mega infrastructure fund” anchored by money from the Kingdom of Saudi Arabia, Blackstone announced its first energy deal a little over a year ago when it bought a controlling interest in Kansas-based Tallgrass Energy for $3.3 billion. Tallgrass owns and operates more than 8,300 miles of natural gas pipeline, 800 miles of crude pipeline, and 300 miles of water pipeline, including storage terminals and processing assets, across the Rockies, Mid-Continent, and at the Cushing, Okla., hub.
Tallgrass announced last May that despite Blackstone’s financial commitment to the midstream company, “the business would continue as usual.” But how quickly a tail of more zeros behind a dollar sign can change minds when Blackstone proposed taking Tallgrass private three months later. The initial offer, valued at $3.03 billion and a 35.9% stock premium to shareholders, certainly gave pause to the midstreamer’s decision to operate as business as usual. But no dice.
Then comes December. Tallgrass asks Blackstone to sweeten the pot in which Blackstone brings the honey—and lots of it. Deal. Done. In a $6.3 billion buyout, the merger is expected to close in the second quarter. In a related announcement, Enagas in December, which owns and operates Spain’s gas grid, also will invest $836 million in Tallgrass. For its part, Blackstone isn’t limiting Tallgrass to its mega infrastructure fund. The firm looks to raise $40 billion for new investments.
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