Blackstone To Acquire MLP Specialist Harvest Fund Advisors

Aug 21 2017 | 5:21pm ET

Global investment giant Blackstone has agreed to acquire Philadelphia-based master limited partnership specialist Harvest Fund Advisors as the company expands its footprint in energy investing. 

Harvest manages approximately $10 billion in mostly institutional assets deployed primarily into publicly traded U.S. midstream energy companies and MLPs via separately managed accounts and pooled vehicles, according to a statement. MLPs typically own midstream energy-related infrastructure assets and typically move, store, and process natural resources for a regulated inflation-adjusted fee through pipelines and storage terminals. They often pay attractive divideds to investors and are seen as relatively uncorrelated to the volatile boom-bust cycle that can afflict the values of energy exploration or service companies. 

Terms of the agreement were not disclosed, although it is subject to customary closing conditions and shold close during the fourth quarter of 2017, the companies said. 

“Harvest is a leader in bringing institutional investors to the MLP asset class,” said Blackstone president and COO Tony James, in the statement. “Harvest’s expertise in this area will complement our extensive energy investing activities across Blackstone.”

“We see significant growth and opportunity in the MLP markets today, especially in the continued evolution towards broader institutional ownership,” added Dwight Scott, a senior managing director of Blackstone and president of the company’s credit-oriented GSO unit. “The Harvest team leads the way in this evolution and has a unique and successful approach to investing in this often misunderstood asset class.” 

Founded in 1985 by Steven Schwartzman and Peter Petersen, Blackstone is the world’s largest alternative asset manager, active in global hedge funds, private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds. The firm manages more than $370 billion.

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