The Blackstone Group L.P.
) recently completed the acquisition of Strategic Partners from
Credit Suisse Group AG
). In Apr 2013, Blackstone had entered into a deal with Credit
Suisse wherein it had agreed to buy Strategic Partners, the
latter's secondary private equity business with assets under
management (AUM) worth $10 billion.
BLACKROCK INC (BLK): Free Stock Analysis
BLACKSTONE GRP (BX): Free Stock Analysis
CREDIT SUISSE (CS): Free Stock Analysis
FORTRESS INVEST (FIG): Free Stock Analysis
To read this article on Zacks.com click here.
Blackstone has been on an expansion spree for quite some time and
the recent acquisition comes in line with the company's strategy
to increase its product base worldwide. Notably Blackstone's
inorganic growth can be traced back to Nov 2012, when it closed
the acquisition of Vivint Inc, a security provider, offering home
automation and technology services.
Earlier, in the same month, Blackstone Capital Partners V, L.P −
a private equity fund managed by Blackstone - announced the
completion of the acquisition of GCA Services Group from Nautic
Partners, L.L.C. and other minority shareholders. In Sep 2012,
Blackstone had reached an agreement with real estate finance
company Capital Trust, Inc. to acquire the latter's investment
The divestment of Strategic Partners will, on the other hand,
help Credit Suisse focus on its core business and prudent cost
management. Notably, in line with its ongoing business
streamlining process, Credit Suisse sold its European exchange
traded funds (ETF) business to
) on Jul 1, 2013.
Blackstone's recent acquisitions reflect the company's solid
capital position. Moreover, these strategic deals are expected to
drive the company's overall growth going forward. Additionally,
the gradually improving economic conditions will aid the
company's fund raising ability, though regulatory changes may
partly act as a deterrent. However, we remain concerned about the
effects of capital market volatility on the company's financial
performance in the near term.
Currently, Blackstone carries a Zacks Rank #2 (Buy). Another bank
Fortress Investment Group LLC
) is also worth a look with the same Zacks rank.