Key Takeaways
- • Blackstone could deploy up to $20 billion in European investments in the coming years, according to Il Sole 24 ORE, with Italy expected to play a key role.
- • Michele Rabà, Head of European Private Equity at Blackstone, estimates the firm's global private equity funds focused on the US and Europe total about $70 billion, implying $15-20 billion potentially available for European companies at a 20-30% investment rate.
- • Blackstone has operated in Italy for over 20 years under Chairman Andrea Valeri, with investments in the country totaling more than $18 billion.
- • Priority sectors include defence, energy transition, data centres, digital and physical infrastructure, and re-industrialisation, reflecting Europe's estimated 750 billion euro annual investment need per the Draghi competitiveness report.
- • Blackstone's European private equity platform includes the $21 billion Flagship Private Equity fund, the roughly $8 billion Core Private Equity fund, an $8.7 billion energy transition platform, and evergreen private equity assets of around $30 billion.
Summary
Blackstone, the global alternative investment manager, could deploy as much as $20 billion into European companies in the coming years, according to Il Sole 24 ORE. Italy is expected to be a key market. Michele Rabà, recently appointed Head of European Private Equity at Blackstone and previously of Apollo and Goldman Sachs, said the firm's global private equity funds focused on the United States and Europe total roughly $70 billion. Applying an investment rate of 20-30%, in line with prior years, he estimated that between $15 and $20 billion could be available for European investments, with part of that channelled into Italy.
Blackstone has been present in Italy for more than 20 years under Chairman Andrea Valeri, and its Italian investments total over $18 billion. Rabà described Italy as a strategic market, the third-largest economy in the eurozone, with no pre-set investment target. He noted that the past four years of relative political stability were valuable to investors, though new elections are due next year. He acknowledged persistent challenges, including modest growth and high public debt, and argued that these conditions create scope for private capital to partner with institutions and families on growth initiatives.
Rabà characterised the European economy as more resilient than expected despite successive shocks, including wars and energy market tensions with oil prices rising above $100. He pointed to large unmet investment needs, citing the roughly 750 billion euros per year identified in Mario Draghi's report on European competitiveness. Priority areas include the energy transition, security of supply, defence, digital infrastructure including data centres, and physical infrastructure such as road and rail networks. Blackstone already has motorway investments through its infrastructure fund and has invested in defence, including the German company Quantum Systems.
Blackstone's European private equity capacity is spread across several platforms. According to Rabà, the Flagship Private Equity fund is $21 billion and focused on traditional buyouts, Core Private Equity has around $8 billion, an energy transition platform has raised $8.7 billion, and evergreen private equity strategy manages about $30 billion. For a single transaction, the firm could commit up to $4-5 billion of equity, with more through co-investors. Previous Italian and European deals cited include Versace, a pharmaceutical deal with Angelini, and the merger of Cirsa and Lottomatica, where Rabà said Cirsa's EBITDA has doubled since Blackstone first invested.
Blackstone has been present in Italy for more than 20 years under Chairman Andrea Valeri, and its Italian investments total over $18 billion. Rabà described Italy as a strategic market, the third-largest economy in the eurozone, with no pre-set investment target. He noted that the past four years of relative political stability were valuable to investors, though new elections are due next year. He acknowledged persistent challenges, including modest growth and high public debt, and argued that these conditions create scope for private capital to partner with institutions and families on growth initiatives.
Rabà characterised the European economy as more resilient than expected despite successive shocks, including wars and energy market tensions with oil prices rising above $100. He pointed to large unmet investment needs, citing the roughly 750 billion euros per year identified in Mario Draghi's report on European competitiveness. Priority areas include the energy transition, security of supply, defence, digital infrastructure including data centres, and physical infrastructure such as road and rail networks. Blackstone already has motorway investments through its infrastructure fund and has invested in defence, including the German company Quantum Systems.
Blackstone's European private equity capacity is spread across several platforms. According to Rabà, the Flagship Private Equity fund is $21 billion and focused on traditional buyouts, Core Private Equity has around $8 billion, an energy transition platform has raised $8.7 billion, and evergreen private equity strategy manages about $30 billion. For a single transaction, the firm could commit up to $4-5 billion of equity, with more through co-investors. Previous Italian and European deals cited include Versace, a pharmaceutical deal with Angelini, and the merger of Cirsa and Lottomatica, where Rabà said Cirsa's EBITDA has doubled since Blackstone first invested.
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