Private equity funds managed by Genstar Capital have taken a majority share in alternative investment manager First Eagle Investments.
Genstar acquired this majority stake from Blackstone, Corsair and their co-investors.
Blackstone, Corsair, and co-investors have owned a majority economic interest in First Eagle Holdings since 2015. The remaining interest is held by First Eagle’s founding families and the firm’s current and former employees.
Last month it was reported that Blackstone Group was planning to sell First Eagle Investment Management for more than $4bn (£3.4bn).
“We thank the First Eagle team for their partnership over the course of our investment in the company, as the business built upon its strong foundation and further diversified,” said Kelly Wannop, managing director of Blackstone.
“We wish them continued success together with Genstar moving forward.”
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D.T. Ignacio Jayanti, chief executive of Corsair, added that the firm was “pleased” with First Eagle and wished the company all the best in its next phase of growth with Genstar.
Genstar Capital is a leading private equity firm focused on investments in targeted segments of the financial services, software, healthcare and industrials industries. Its majority acquisition is expected to bolster First Eagle’s current business strategy of investing in its core business while expanding the range of high-quality, differentiated investment solutions it is able to offer clients worldwide.
Following the close of the transaction, First Eagle’s leadership and investment teams will remain intact, with each investment team maintaining its philosophical autonomy.
“Serving clients is our primary purpose at First Eagle and drives our commitment to providing superb investment products and exceptional client service,” said Mehdi Mahmud, president and chief executive of First Eagle.
“The transaction with Genstar preserves our client-centric ethos and operating independence while providing fresh capital to enhance our value to clients.
“Combined with First Eagle’s reputation as a preferred destination for top talent, Genstar’s partnership will accelerate the pace at which we expand our investment capabilities and client reach, both organically and through acquisitions. We are thrilled with the opportunities ahead.”
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“First Eagle has demonstrated a track record of innovation and evolution over its long and impressive history, and we are excited to partner with Mehdi, the investment teams and the firm’s broader leadership in their next chapter of growth,” added Tony Salewski, managing partner of Genstar.
“The company’s investment-led culture, market-leading investment solutions and broad distribution capabilities are differentiated among premiere investment managers.
“We believe these attributes make First Eagle an ideal platform to capitalise on growth trends in the investment management industry, and we look forward to supporting the team on this continued journey.”
Simpson Thacher & Bartlett and Davis Polk & Wardwell acted as legal counsel on the deal, while Morgan Stanley acted as lead financial advisor to First Eagle.
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