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Blackstone (BX) Enters Partnership With BNP Paribas (BNPQY)

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Blackstone Inc. (BX - Free Report) enters a partnership with BNP Paribas SA (BNPQY - Free Report) to form a new fund financed by French individuals. The aim of the fund will be to invest in companies in private debt.

Notably, the private credit market has gained importance as an alternative source of financing for companies, especially those that face difficulties accessing traditional bank loans or prefer a more flexible and tailored financing structure.

BX’s vehicle, dubbed “Blackstone Credit Privé Europe SC,” aims to tap into the large pool of savings held by French retail investors via the country’s most popular tax-efficient life insurance product.

This new France-dedicated fund, which is aimed at investing in middle-sized companies, fits well with Blackstone’s group strategy targeting individual investors.

Rashmi Madan, the head of Blackstone’s private wealth solutions in Europe, stated, “Given the current environment, credit is, in particular, very interesting given the rise in interest rates. And the risk-adjusted returns of private credit have never been more attractive.”

BNPQY and Blackstone said that clients of the French lender’s private bank unit and insurance division would benefit from an exclusivity period ending on Apr 5 to invest in the fund.

Over the past six months, BX shares have gained 19.1%. The BNPQY stock has lost 7.2% over the same period.

 

Zacks Investment Research
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Currently, BX and BNPQY carry a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Partnerships of Other Finance Firms

A few months ago, Old National Bancorp (ONB - Free Report) and CapStar Financial Holdings, Inc. entered a definitive merger agreement for ONB to acquire CapStar in an all-stock transaction.

The partnership is expected to strengthen Old National’s recently formed Nashville presence and add several new high-growth markets.

The combination with CSTR accelerates ONB’s Tennessee presence, bringing $3.3 billion in total assets, $2.3 billion in total loans and $2.8 billion in deposits.

Jim Ryan, the CEO of ONB, said, “This partnership with CapStar – one of the most highly respected and successful community banks in Tennessee – is a tremendous cultural fit and a natural extension of our growth strategy. By establishing a full-service banking presence in Nashville and several other strong Tennessee and North Carolina communities, we can more fully serve our existing Nashville-area clients while also introducing our client- and community-focused brand of banking to the surrounding region.”

Timothy K. Schools, the president and CEO of CSTR, stated, “Over the past five years, our team has repositioned CapStar, strengthening its performance and long-term prospects. In looking to the next five years, it is my belief Old National’s like-minded culture and scale best positions our employees, customers, and shareholders to continue our positive momentum.”


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