China's State Investment Company To Acquire Stake In Us Private Equity Group

China's State Investment Company (SIC) has agreed to make a US$3 billion investment in The Blackstone Group, in the form of non-voting common units. The sale will close concurrent with Blackstone's planned US$4 billion initial public offering (IPO). The purchase price per common unit will be 95.5% of the offer price in Blackstone's planned IPO.

SIC's equity interest in Blackstone will remain under 10% after the planned IPO, while the number of non-voting common units purchased by SIC will be reduced if necessary to maintain this figure. In turn, SIC has agreed to hold its investment in Blackstone for at least four years. The State Administration of Foreign Exchange is establishing an investment vehicle (which will report directly to the State Council of the PRC) to invest in Blackstone. Lou Jiwei, head of the working group of SIC, said in a statement: “We are very pleased to be able to make the State Investment Company's very first investment in such a well-respected firm as Blackstone.”