The company is quietly testing the absorptive capacity of another growth fund
Blackstone Group IncA record growth fund was set up in March this year, and the industry has a similar strategy.
Blackstone Group Inc is raising one of the largest growth equity funds in history.
The investment giant could raise as much as $10 billion to set up a second fund aimed at fast-growing companies, more than twice the size of its first similar fund, according to people familiar with the matter. One of the people, who spoke on condition of anonymity, said the company had begun to consult market participants on its fund-raising targets, but had not yet set a precise target.
Such deals are aimed at companies that have passed the start-up stage but are not yet seen as mature acquisition targets or are not ready to go public. Blackstone Group Inc and his peers grasp investors' high appetite for fast-growing companies in a low-interest environment, especially in hot industries such as technology and healthcare.
Growth equity deals were worth a record $62.5 billion in 2020, according to PitchBook. A spokesman for Blackstone Group Inc declined to comment.
Other companies in the market pursuing a similar strategy include Sixth Street, which is raising $3 billion in a second such fund, and General Atlantic, which is raising $5 billion for its latest fund.
Blackstone Group Inc, whose growth fund team is led by Jon Korngold, joined Blackstone Group Inc from General Atlantic in 2019. He helped Blackstone Group Inc develop another product line that went beyond the private equity funds the company had established in the past and expanded into real estate, credit and investing in insurance companies.
Blackstone Group Inc received an investment of $4.5 billion in March to set up what it calls "the largest first-time growth equity fund in history". The fund began buying stocks last year, including online dating company Bumble, which went public this year, and Swedish oatmeal beverage company Oatly.