Blackstone and Corsair Capital acquired a majority stake in First Eagle Investment Management, an independent, privately-held asset management firm. The private equity firm’s investment values First Eagle at approximately $4 billion including debt.
Blackstone and Corsair Capital acquired the entire stake of TA Associates in First Eagle. The private equity firms also made their investment in the firm through its holding company, Arnhold and S. Bleichroeder Holdings I
These Are John Buckingham’s Stock Picks For 2021
The economy remains in distress, although there are signs of recovery underway. John Buckingham of Kovitz, editor of The Prudent Speculator newsletter, has found that value stocks typically outperform coming out of economic downturns. Thus, he argues that this is an excellent time to be a value investor. Q4 2020 hedge fund letters, conferences and Read More
Blackstone and Corsair Capital’s investment also ensures that First Eagle will continue to operate independently. It will maintain its investment-centric culture. First Eagle has $100 billion in assets under management (AUM). First Eagle is focused on fundamental, flexible and benchmark-agnostic investing, including strategies that aim to provide clients with downside protection.
The employees of First Eagle will have the opportunity to increase their equity holdings significantly in the firm following its transaction with Blackstone and Corsair Capital.
The senior management and investment leadership of First Eagle supports the long-term investment of Blackstone and Corsair Capital. They will continue to day-to-day operations of the firm. The Arnhold family still owns a significant stake in First Eagle, and will retain its position on the board after the completion of the deal.
Blackstone and Corsair Capital will oversee the First Eagle’s business at the board level. The private equity firms will not be involved in managing the daily operations of the firm.
Blackstone supports First Eagle’s Management
Joseph Baratta, global head of private equity at Blackstone described First Eagle as a first class asset management firm with excellent investment talent. He added that Blackstone understands and respects the culture and investment philosophy of First Eagle.
According to Baratta, Blackstone supports the management and employees of First Eagle as they seek to provide outstanding service and investment return to clients.
John Arnhold, Chairman and CIO of First Eagle, said the founding family is pleased with the investment because it provides long-term stability to the firm and its clients. He added, “We look forward to maintaining our involvement with First Eagle and remaining one of the Firm’s largest clients.”
Meanwhile, Corsair Capital Managing Partner, D.T. Ignacio Jayanti said his firm is impressed with First eagle’s ability to make successful investments for its clients through market cycles. Jayanto also noted that First Eagle established itself as a premier specialist, active asset management firm. Corsair Capital believes that First Eagle’s strategies will remain attractive to clients over the long-term.