Blackstone (BX) Expands In Energy Sector, Buys Harvest Fund

Continuing its efforts toward expanding into markets with vibrant growth opportunities, The Blackstone Group L.P. (NYSE:BX) announced its acquisition of Wayne, PA-based Harvest Fund Advisors LLC. The financial terms of the deal, which is expected to close during fourth quarter of 2017, were not disclosed.

Harvest is an independent investment management firm with more than $10 billion in assets under management. It invests funds received from institutional investors in separately managed accounts and pooled vehicles, and public master limited partnerships (MLPs) that hold U.S. midstream energy assets.

In the past, Harvest generated extraordinary long-term results for its investors and is known for getting institutional investors to invest in MLP asset class. Thus, Harvest’s proficiency in the energy sector combined with Blackstone’s energy investing activities will help both to expand their business and deliver exceptional results.

Harvest’s employees will continue to work from its headquarters in Wayne. Also, it will continue to be led by its current management team, which is headed by Eric Conklin.

Blackstone’s primary motive behind this acquisition is to increase exposure to the energy sector, as demand for energy is unlikely to decline ahead given its vital necessity. Also, MLP markets have a lot of scope and Harvest’s team has developed a unique approach to invest in this asset class. This will benefit Blackstone in the long-run. It is going to be an addition to its GSO credit business.

Blackstone also completed another acquisition in the month of May. It acquired Aon plc’s technology-enabled benefits and human resources (HR) platform for a cash consideration of up to $4.8 billion. The deal includes $4.3 billion at closing and a performance-driven consideration of up to $500 million.

Shares of Blackstone have gained 4.6% over the last six months versus the industry’s growth of 9.9%.

Currently, Blackstone carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the same space are Och-Ziff Capital Management Group LLC (NYSE:OZM) , Schroders (LON:SDR) plc SHNWF and Cohen & Steers, Inc. (NYSE:CNS) – each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Och-Ziff Capital Management Group LLC has been revised 33.3% upward for the current year over the last 60 days. Its share price has seen a 27.9% rise over the last three months.

Schroders plc has witnessed upward earnings estimate revision of 9.2% for the current year over the past 60 days. Also, the stock has gained 8.9% over the last three months.

Cohen & Steers Inc’s Zacks Consensus Estimate has been revised 3.6% upward for the current year over the last 60 days. Also, its share price has moved 0.26% higher over the last three months.

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