Fund of firms: Who owns what?

Blackstone’s purchase of a minority interest in European buyout firm BC Partners is the latest transaction in the growing fund of firms market.

Blackstone Strategic Capital, a unit of the asset management giant which acquires stakes in private equity firms, said last week it will provide London-headquartered BC Partners with balance sheet capital to grow its business including its recently launched real estate and private credit platform.

The size of the deal is understood to be worth around €500 million and represents as much as a 15 percent stake in the London-headquartered firm.

The GP stakes market is on the road to raise around $14 billion this year after raising an estimated $17 billion last year, according to a report from Bain & Company. Dyal Capital Partners, a unit of Neuberger Berman that pioneered the GP stakes strategy, has $20.3 billion in aggregate commitments and is on track to raise as much as $8.5 billion for its fourth vehicle, as reported by sister publication Private Equity International.

Blackstone Strategic Capital raised $3.3 billion for its 2013-vintage vehicle. Others such as Jefferies Financial Group and Stonyrock Partners – led by former AlpInvest Partners‘ Sean Gallary – have launched vehicles focused on the mid-market.

Below is a list of the three biggest players in the GP interest market and which firms they have bought.

– Preeti Singh contributed to this report.