Blackstone raises $4.5bn for largest first-time growth vehicle

Blackstone Growth (BXG) was not only oversubscribed, closing at its $4.5 billion hard cap, but was also the largest first-time growth equity private fund in the $690 billion alternative investment firm’s history.  

Blackstone Growth has been expanding rapidly all the while seeking to help companies to do the same.  In January, Snowflake CEO Frank Slootman joined as adviser to BXG as the group built out its model to work with high-growth and high-tech companies. BXG’s focus is on providing capital to companies seeking to minimize the execution risks associated with high-growth environments.

Recent investments for the group include Bumble, Oatly, ISN and Epidemic Sound. 

“The scale of the resources, operational expertise, and capital that Blackstone can deliver to growth-stage entrepreneurs is a clear differentiator,” said Jon Korngold, global head of Blackstone Growth. “This new approach to growth equity has already created significant value for the companies we’ve backed, and we are pleased that it has been well-received by a wide range of global investors. We are excited to continue partnering with entrepreneurs around the world as we help them transform their businesses from regional champions into global industry leaders.”

BXG’s aim is to have a concentrated approach to portfolio construction that allows for more significant operational value to the individual companies in which it invests. The sector focus for the portfolio spans financial services, enterprise and consumer technologies, healthcare and consumer.

 Blackstone offers entrepreneurs potential access to its more than 100 operating professionals and advisors. Portfolio companies also have access to a group procurement program that purchases on behalf of portfolios companies with more than 450,000 employees. They are also offered a dedicated team responsible for identifying opportunities for its businesses to sell to its global portfolio companies with more than $160 billion of combined revenue.

As if that weren’t enough, these companies have access to more than 880 million square feet of eCommerce logistics assets and Blackstone’s team of dozens of data scientists and insights gleaned from 25 offices throughout the world. BXG specifically has employees in New York, San Francisco and London.