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Blackstone's (BX) Buyout of DCI to Aid Technology-Driven Investing
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Blackstone (BX - Free Report) has inked a deal to acquire San Francisco-based DCI, an investment management firm that uses “a proprietary, fundamental-based, technology-driven model to deliver differentiated returns to clients.” The terms of the transaction were not revealed.
With assets under management (AUM) of roughly $7.5 billion, DCI, founded in 2004, will be integrated with Blackstone Credit. The deal will expand Blackstone Credit’s capabilities in high yield and investment grade investments. Blackstone Credit, one of the leading firms, offers private lending, syndicated leveraged loans and collateralized loan obligations. It had $135 billion AUM as of Sep 30, 2020.
Further, DCI’s investment process will gain from Blackstone’s resources and scale across global financial markets.
Dwight Scott, Global Head of Blackstone Credit, said: “DCI has a more than 15-year track record of developing and applying technology-driven strategies and is at the forefront of the evolution towards quantitative investing in the corporate bond market. DCI will strengthen and differentiate the solutions we provide to our retail, institutional and insurance clients.”
Tim Kasta, CEO of DCI, said: “Joining Blackstone Credit will provide DCI’s team and investors with access to unparalleled institutional resources and asset management expertise and accelerate the development of innovative solutions in corporate credit.”
With rise in demand for technology-driven processes to improve businesses, the deal is expected to aid Blackstone’s financials, going forward. The company is expected to continue benefiting from its diversified products, robust fund-raising ability, global footprints and revenue mix.
Shares of Blackstone have gained 12.6% over the past year, underperforming the industry’s rise of 16.4%.
With coronavirus pandemic hurting businesses and demand for technology-driven processed rising, several financial firms are expanding inorganically or have plans to do so. Last month, with an aim to enhance and expand the merchant payment business and accelerate growth plans in Europe, Banco Santander, S.A. (SAN - Free Report) announced a deal to acquire several highly specialized technological assets from Wirecard.
Further, per a report by The Times, JPMorgan (JPM - Free Report) is considering to acquire Britain-based online-only bank, Starling Bank Ltd. As the company plans to launch consumer bank in the U.K. early next year, the deal (if finalized) is expected to complement its strategy. Another contender of Starling Bank is Llyods Banking Group (LYG - Free Report) .
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Blackstone's (BX) Buyout of DCI to Aid Technology-Driven Investing
Blackstone (BX - Free Report) has inked a deal to acquire San Francisco-based DCI, an investment management firm that uses “a proprietary, fundamental-based, technology-driven model to deliver differentiated returns to clients.” The terms of the transaction were not revealed.
With assets under management (AUM) of roughly $7.5 billion, DCI, founded in 2004, will be integrated with Blackstone Credit. The deal will expand Blackstone Credit’s capabilities in high yield and investment grade investments. Blackstone Credit, one of the leading firms, offers private lending, syndicated leveraged loans and collateralized loan obligations. It had $135 billion AUM as of Sep 30, 2020.
Further, DCI’s investment process will gain from Blackstone’s resources and scale across global financial markets.
Dwight Scott, Global Head of Blackstone Credit, said: “DCI has a more than 15-year track record of developing and applying technology-driven strategies and is at the forefront of the evolution towards quantitative investing in the corporate bond market. DCI will strengthen and differentiate the solutions we provide to our retail, institutional and insurance clients.”
Tim Kasta, CEO of DCI, said: “Joining Blackstone Credit will provide DCI’s team and investors with access to unparalleled institutional resources and asset management expertise and accelerate the development of innovative solutions in corporate credit.”
With rise in demand for technology-driven processes to improve businesses, the deal is expected to aid Blackstone’s financials, going forward. The company is expected to continue benefiting from its diversified products, robust fund-raising ability, global footprints and revenue mix.
Shares of Blackstone have gained 12.6% over the past year, underperforming the industry’s rise of 16.4%.
Currently, Blackstone carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Firms Making Similar Efforts
With coronavirus pandemic hurting businesses and demand for technology-driven processed rising, several financial firms are expanding inorganically or have plans to do so. Last month, with an aim to enhance and expand the merchant payment business and accelerate growth plans in Europe, Banco Santander, S.A. (SAN - Free Report) announced a deal to acquire several highly specialized technological assets from Wirecard.
Further, per a report by The Times, JPMorgan (JPM - Free Report) is considering to acquire Britain-based online-only bank, Starling Bank Ltd. As the company plans to launch consumer bank in the U.K. early next year, the deal (if finalized) is expected to complement its strategy. Another contender of Starling Bank is Llyods Banking Group (LYG - Free Report) .
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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