Blackstone (BX) Expands In Energy Sector, Buys Harvest Fund
Zacks Investment Research | Aug 17, 2017 10:24PM ET
Continuing its efforts toward expanding into markets with vibrant growth opportunities, The Blackstone Group L.P. (NYSE:BX) announced its acquisition of Wayne, PA-based Harvest Fund Advisors LLC. The financial terms of the deal, which is expected to close during fourth quarter of 2017, were not disclosed.
Harvest is an independent investment management firm with more than $10 billion in assets under management. It invests funds received from institutional investors in separately managed accounts and pooled vehicles, and public master limited partnerships (MLPs) that hold U.S. midstream energy assets.
In the past, Harvest generated extraordinary long-term results for its investors and is known for getting institutional investors to invest in MLP asset class. Thus, Harvest’s proficiency in the energy sector combined with Blackstone’s energy investing activities will help both to expand their business and deliver exceptional results.
Harvest’s employees will continue to work from its headquarters in Wayne. Also, it will continue to be led by its current management team, which is headed by Eric Conklin.
Blackstone’s primary motive behind this acquisition is to increase exposure to the energy sector, as demand for energy is unlikely to decline ahead given its vital necessity. Also, MLP markets have a lot of scope and Harvest’s team has developed a unique approach to invest in this asset class. This will benefit Blackstone in the long-run. It is going to be an addition to its GSO credit business.
Blackstone also completed another acquisition in the month of May. It acquired Aon plc’s technology-enabled benefits and human resources (HR) platform for a cash consideration of up to $4.8 billion. The deal includes $4.3 billion at closing and a performance-driven consideration of up to $500 million.
Shares of Blackstone have gained 4.6% over the last six months versus the industry ’s growth of 9.9%.
Currently, Blackstone carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the same space are Och-Ziff Capital Management Group LLC (NYSE:OZM) , Schroders (LON:SDR) plc Original post
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