Blackstone has tapped top venture capitalist and former Battery Ventures partner Paul Morrissey to lead its growth investing business in Europe.
Morrissey has joined Blackstone as a managing director responsible for the European deployment of Blackstone Growth, the asset manager’s $4.5 billion debut growth fund, according to a statement seen by affiliate publication Private Equity International.
He comes to the role after nearly nine years at Battery Ventures, where he was a partner and helped establish the investor’s London office. Prior to that he spent three years at Goldman Sachs advising tech companies.
“Paul is a world-class growth equity investor and his appointment underlines Blackstone’s already-strong commitment to partnering with fast-growing European companies to help them become global industry leaders by providing them with access to a scale of resources not typically available to this market,” said Jon Korngold, global head of Blackstone Growth, in the statement.
Morrissey was based in Battery’s San Francisco office before moving to London in 2016. He was involved in the firm’s investment in Gainsight, which Vista Equity Partners acquired for $1.1 billion last year.
He was listed on the boards of such Battery portfolio companies as Guardsquare, InCloudCounsel, PageUp, PrimRevenue, Quinyx and Shippeo. His previous investments also include Intacct (acquired by Sage) and WebPT (acquired by Warburg Pincus), according to his Battery bio, which has since been removed online.
Blackstone’s European strategy
Blackstone first hinted at plans for a growth strategy in 2017 and hired Korngold from General Atlantic in January 2019. The fund will target investment of between $200 million and $400 million in fast-growing companies in the financial services, enterprise and consumer technologies, healthcare and consumer sectors.
Blackstone Growth is the “largest first-time growth equity private fund raised in history,” the firm said on its final close at the end of March. The fund has already made several investments, including buying stakes in oat milk manufacturer Oatly and music-to-internet company Epidemic Sound.
Limited partners in Blackstone Growth include Minnesota State Board of Investment, which committed $250 million, according to PEI data.
Growth-focused funds raised $58 billion in 2020, a steep drop from $103 billion the year before, according to PEI data. The market could rebound in 2021 as EQT launches its debut growth vehicle, which is seeking more than €1.6 billion, and Carlyle Group comes to market with a growth equity vehicle dedicated to mid-size private equity deals in North America.
This article first appeared in affiliate publication Private Equity International