Quiver Quantitative - Blackstone (NYSE:BX) has successfully garnered a record $5.2 billion for the Blackstone Tactical Opportunities Fund IV, a unique fund aiming at deals that don't adhere strictly to a particular investment approach. Surpassing its initial $4 billion goal, this financial accomplishment equips Blackstone with more capital to scout and finalize deals, especially at a time when banks have demonstrated hesitance in financing due to the demise of three prominent lenders this year. Originating in 2012, this arm of Blackstone, colloquially known as “Tac Opps”, has witnessed a meteoric rise to $34 billion, exemplifying private equity's venture beyond traditional buyout origins.
The Tac Opps segment is renowned for crafting deals that don't distinctly belong to private equity or credit, and occasionally fuses elements of both. This flexibility allows Tac Opps to collaborate with other Blackstone divisions, amplifying the mega-firm's investments in preferred sectors and themes. This avenue has also been instrumental as an experimental platform for Blackstone, pioneering new deal frameworks and subsequently generating innovative business prospects.
Significantly, Tac Opps has ventured into growth equity, which predominantly targets acquiring shares in mature startups on the cusp of turning a profit. This preliminary move in growth equity preceded Blackstone's establishment of a specialized group for such transactions. Moreover, Tac Opps undertook an insurance deal that eventually shaped the broader strategy of Blackstone to procure stakes in insurance entities in return for new asset management opportunities. As the firm continues to diversify, pension and endowment clients can now solicit tailored strategies from Tac Opps, and Blackstone anticipates that this will boost the platform's recent fundraising total to approximately $10 billion.
David Blitzer, a seasoned Blackstone stalwart, was the visionary behind Tac Opps, having initially spearheaded the European private equity business. Recognized as an inventive dealmaker within Blackstone, Blitzer has also been expanding his footprint in the sports industry outside of his professional commitments. In collaboration with Josh Harris, co-founder of Apollo Global Management (APO)., Blitzer has acquired ownership of the Philadelphia 76ers, New Jersey Devils, and holds a general partnership in the Crystal Palace Football Club
This article was originally published on Quiver Quantitative