Blackstone and Corsair Capital have agreed to invest in First Eagle Investment Management, which values the New York company at $4 billion and generates an exit for Boston's TA Associates, according to a statement by the asset management company.
The New York firms are making their investment through the asset management business' holding company, Arnhold and S. Bleichroeder Holdings. Additional terms about the structure of the deal were not released.
Officials from Blackstone and Corsair declined to comment further about the transaction details involving the asset management firm, which will leave the company's senior management team as “significant” equity stakeholders in the business, according to the company's statement. In addition, the Arnhold family will retain an interest in the business and remain on the company's board.
“The Family is pleased with the long-term stability that this investment provides the firm and our clients,” John Arnhold, chairman and chief investment officer of First Eagle Investment Management, said in a statement.
TA officials declined to comment. In a statement, TA Associates senior advisor P. Andrews McLane said of the company's deal with Blackstone and Corsair: “During this time of unprecedented market turbulence, we have been impressed with First Eagle's prudent stewardship of its clients' assets, and we believe that it is well positioned to prosper in the future.”
TA's investment in First Eagle, which manages $100 billion in assets for its institutional and retail clients, can be traced back to 2007 when the Massachusetts private equity acquired a minority interest in the holding company of First Eagle.
Blackstone has raised $16.7 billion in new commitments for its seventh global Blackstone Capital Partners buyout fund, while Corsair is making the investment out of its fourth fund of just under $1 billion, which closed in March 2013.