Chibuike Oguh, Svea Herbst–Bayliss

NEW YORK, (Reuters) – Blackstone Group (NYSE 🙂 bought a minority share in Nautic Partners (a middle-market private capital firm that invests mainly into healthcare, industrials, and service companies), according to two sources who were familiar with the matter.

Blackstone is one of the most powerful private equity firms in the world. It bought the stake using its second GP stakes Fund, which specializes at buying minority stakes from other funds. The target can then cash in their investment profits and the fees.

It was impossible to learn the terms of this deal.

Nautic was founded in Providence, Rhode Island in 1986. The firm has seen strong returns since then. They manage $7.7 Billion.

Preqin’s 2021 global ranking of buyout managers shows that Nautic was eighth best performing. It ranked three of its funds in the top quarter, which is a crucial measurement for the private equity sector.

Recent funding of $3 billion by Nautic for its tenth fund of private equity was completed. The average investment amount is between $50 and $250 millions.

One source said that the firm had been approached several times by potential suitors prior to reaching an agreement with Blackstone. The sources also stated that the company plans to make use of Blackstone’s liquidity to fund deals.

Blackstone has just closed a fund raising process and the Strategic Capital Holdings II fund was closed with $5.6 million in investor capital.

Blackstone is one of a few companies that has built a successful business by taking minority shares in private equity firms.

The trend started a few years back when senior partners decided to leave the companies they had founded. However, it has been growing fast as new leaders decide to open new businesses and hire more employees.

Blue Owl (NYSE:)’ Petershill Partners is one of the biggest players in so-called GP stakes. All three have recently raised billions for new funds.