Blackstone looks to advise startups

September 21, 2011

— Luisa Beltran is a contributor for PE Hub, a Thomson Reuters publication. This article originally appeared here. —

The Blackstone Group wants to advise, not buy, Silicon Valley startups.

So reports Blackstone has long had an advisory practice, but the New York private equity firm is known more for its mega buyouts. For example, Blackstone was part of the investor group that acquired Freescale Semiconductor in 2006 for $17.6 billion and also acquired Hilton Hotels in 2007 for $26 billion.

But Blackstone recently hosted an “inaugural” tech forum in Silicon Valley that was intended to match up startups, investors and industry experts, reports. Ivan Brockman, a Blackstone MD who is based in Menlo Park, admits that Blackstone isn’t known for advising tech companies.

Brockman told that the buyout shop wants to work with emerging disrupters or those companies that are “disrupting the status quo are those that are tackling current problems in a new way. Given the situation today, sometimes those emerging disrupters aren’t creating the market; they’re making it better,” he said.

In a Blackstone blog post from earlier this month, Brockman said cloud computing and mobility are causing a profound transformation in enterprise IT. Cloud computing is “changing the way we design and manage data centers and applications, how IT departments deliver capabilities to users, and how users access, select and interact with applications,” said Brockman.

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