The Blackstone Group and Corsair Capital have made a majority long-term investment in First Eagle Investment Management, said First Eagle spokesman Paul Frankle.
Blackstone and Corsair's investment, which values First Eagle at about $4 billion, was made through their private equity funds. The names of the funds were not disclosed. The transaction includes the sale by private equity firm TA Associates of its entire investment in First Eagle. Mr. Frankle declined to disclose how big TA's stake was other than it is a minority stake.
Once the deal closes, which is expected to occur in the fourth quarter, First Eagle will continue to operate independently. Also, First Eagle employees will have an opportunity to increase their equity ownership in the firm.
First Eagle's senior management and investment leadership will retain significant ownership in the firm and will continue to run the business on a day-to-day basis. Blackstone and Corsair will exercise their oversight of the business at the board level and will not be involved in the day-to-day management of the firm, said a news release.
“Through this agreement, we have achieved our primary goals of remaining independent, preserving our investment-centric culture and increasing employee ownership, while addressing the liquidity needs of current shareholders,” said Bridget Macaskill, president and CEO of First Eagle Investment Management, in the release announcing the deal.
First Eagle had about $100 billion in assets under management as of March 31.