M&A News: Blackstone’s First Eagle Investment Up for Sale with $4B Price Tag

U.S.-based private equity group Blackstone Inc. (BX) is reportedly considering selling a significant stake in First Eagle Investment with a price tag of around $4 billion. According to the Financial Times, Blackstone and Corsair Capital, which jointly acquired First Eagle in 2015, have enlisted Morgan Stanley (MS) to oversee the sales process. Notably, Blackstone and Corsair Capital financed the purchase with leverage and dividends, meaning a sale above $4 billion would yield a positive, though modest, return on their investment.

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Blackstone Seeks Profit amid Asset Management M&A Boom

Through this deal, Blackstone and Corsair seek to capitalize on the increasing M&A activity in the asset management sector. Private equity (PE) firms and financial services companies are steadily investing in fee-based financial businesses, fueling the sector’s growth. Additionally, soaring valuations due to the current takeover frenzy are further driving momentum in the industry, making it an attractive time for Blackstone and Corsair to benefit from this market trend.