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Blackstone (BX) Closes Clarus Buyout, Expands in Healthcare

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Recently, The Blackstone Group L.P. (BX - Free Report) completed the acquisition of global life sciences investment firm, Clarus, ramping up investments in the healthcare sector. The new business will be named as Blackstone Life Sciences, while historical funds will retain the Clarus name.

Notably, Blackstone, being the second largest owner of life sciences office space in the world, has already invested more than $19 billion in healthcare and healthcare-related transactions.

Clarus, in partnership with various biopharmaceutical companies, primarily funds growth-stage investments. With offices in Boston and San Francisco, and experience of investing in more than 50 companies in biopharmaceutical, medical device and diagnostic sectors, Clarus has raised nearly $2.6 billion since inception.

With the acquisition of Clarus, Blackstone, which already manages alternative asset classes like private equity and real estate, has launched Blackstone Life Sciences Investment Platform. Through this private investment platform, the asset manager will be able to invest across various companies and products within the life sciences sector.

The main motive behind this deal is to provide necessary funding to the healthcare industry. While this industry is experiencing extraordinary growth, it lacks proper funds to advance breakthrough healthcare products to the market for addressing medical needs.

Notably, Blackstone’s inorganic growth efforts remain impressive. Moreover, the company is expected to benefit from diversified product and revenue mix. Further, its robust fund-raising ability should support profitability.

The company’s shares have gained 3.8% in the past six months against 17.3% decline recorded by the industry.

The stock currently carries a Zacks Rank #3 (Hold).

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