USA: Blackstone Sets up Impact Investing Arm

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May 2019
USA, May, 07 2019 - The group will pursue four investment themes within impact investing: health and well-being, financial access, green technologies and sustainable communities.

Blackstone Group is the latest private equity firm to launch an investment strategy that aims to produce positive social or environmental outcomes along with financial returns.

The New York firm has formed an impact investing unit that will be part of Blackstone Strategic Partners, its secondary investing group, according to a news release issued Monday.

Blackstone hired Tanya Barnes, a former managing director in the merchant-banking unit of Goldman Sachs Group, to lead the new venture.

The group will invest in the private equity, real estate and infrastructure sectors by working with external impact-investing managers identified through Strategic Partners’ network of relationships. It will pursue four investment themes within impact investing: health and well-being, financial access, green technologies and sustainable communities.

Impact investing, sometimes referred to as environmental, social and governance investing, or ESG, has grown quickly in recent years as more institutions and wealthy individuals have come to consider social factors in their investment decisions. Impact investing assets managed a world-wide total of $502bn billion at the end of last year, according to a report last month from the Global Impact Investing Network, an industry organisation.

Private equity firms have moved to fill the demand for such investments. KKR last year formed an impact investment unit, joining Bain Capital, TPG and other large firms with dedicated impact investing strategies.

For Blackstone, the formation of the new impact investing group continues a recent expansion beyond its core investing areas within private equity and real estate. The firm this year announced a new growth-equity business, led by former General Atlantic executive Jon Korngold, and last year it agreed to buy investment firm Clarus Ventures to establish a platform for investing in the life sciences sector.



 

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