Blackstone’s Strategic Capital Group and Goldman Sachs Asset Management’s Petershill program have acquired a minority stake in Francisco Partners, a technology-focused private equity firm.
The investment provides Francisco Partners with balance-sheet capital to continue to develop its strong platform while increasing commitments to its own funds, and strengthening its alignment with limited partners. Terms of the transaction were not disclosed.
Dipanjan “DJ” Deb, Co-founder and CEO of Francisco Partners, says: “Since our inception, we have always prided ourselves on the strength of our relationships. We have the opportunity to work with great management teams who create solutions across all sectors of technology. We have incredible limited partners and now we are proud to bring on two strategic partners in Blackstone and Goldman Sachs to help us continue to grow our platform so that we can build on the success of the past 20 years. We are excited about the opportunities ahead of us and welcome the resources and expertise that these firms bring to FP.”
Scott Soussa, Head of Blackstone Alternative Asset Management’s Strategic Capital Group which specializes in acquiring long-term interests in alternative managers, says: “Francisco Partners is driven by a talented investing team with deep industry expertise. For nearly two decades, the team has stood out as a leading partner to businesses in the technology sector and we, alongside Petershill, are proud to support their continued growth.”
Robert Hamilton Kelly, Managing Director in the AIMS Group at Goldman Sachs Asset Management, said, “We look to partner with differentiated businesses with their best years ahead of them, and we believe Francisco Partners is a perfect example of such a firm. They have a well-deserved reputation for thoughtful investment and strategic operational execution across the technology space.”
Michael Brandmeyer, co-CIO of the AIMS Group at Goldman Sachs Asset Management, says: “The Francisco Partners team is impressive and we appreciate the commitment and continuity of the organisation. We, together with Blackstone, look forward to supporting the firm’s development and believe in its continued success.”
Evercore served as financial advisor to Francisco Partners. Kirkland & Ellis LLP served as legal counsel to Francisco Partners, Simpson Thacher served as legal counsel to Blackstone and Fried Frank served as legal counsel to Goldman Sachs.