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Blackstone Buys Minority Stake In GI Partners

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Blackstone Alternative Asset Management's Strategic Capital Group has acquired a minority stake in San Francisco-based GI Partners, a move the firm had been contemplating since late last year.

The investment by Blackstone's hedge fund business for an undisclosed amount gives GI Partners balance sheet capital to reinvest in the business and engage in strategic initiatives, the company reports.

"This investment is a testament to the strength of the people and processes which have driven our success over the last two decades," GI Partners founder and Executive Managing Director Rick Magnuson said in a statement. "We look forward to leveraging the partnership with Blackstone as we continue to grow and diversify the business for the benefit of our investors."

Private investment firm GI Partners was founded in 2001 and has raised over $17B in capital from institutional investors to invest in private equity, real estate and data infrastructure.

In December, Bloomberg reported that Blackstone was negotiating for the purchase of a minority share in GI Partners. The investment firm had been rumored to be seeking minority buyers back in May.

Evercore was financial adviser to GI Partners for the deal. Kirkland & Ellis served as legal counsel to GI Partners, and Simpson Thacher served as legal counsel to Blackstone.