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PE HUB Wire Highlights, 10.3.18

Blackstone seeks $3.3 bln for fund to buy minority stakes; Clairvest Fund VI targets C$800 mln; San Diego County hesitates to commit to PE while GPs have upper hand

It’s Wednesday, Hubsters.

Many are writing in to give their views on the relevancy of business school. Yesterday, I mentioned that the number of applicants to U.S. business schools has dropped 7 percent in 2018, according to press reports. B-school is considered a prerequisite to private equity. The standard route to PE riches starts with candidates working at an investment bank early in their career, then to a stint at a PE firm and then back to business school before they can truly start their private equity careers. Now some noteworthy candidates are allowed to skip b-school but those are relatively few from what I understand. For most, b-school remains a requirement for PE. But if so many are opting not to attend business school, what will PE do? Will the industry have to — I shudder to even use the dreaded C word — start to consider consulting candidates?

The value of business school isn’t the education, I’ve been told, but the connections made during those years. Some take issue with this premise.

One reader writes: “I have yet to hear that b-school fundamentally improved individuals’ skillset /ability to rise to partner expanding network is overstated reason with little actual evidence to support.”

But others agree. Consider John, who says: “All else equal, I think candidates interviewing for PE jobs have a much better chance of getting hired if they have an MBA from a top 10 school, relative to candidates who don’t — an excellent MBA program implies that a valuable network is part of the package, whereas for most non-MBA candidates (including CFAs, etc.), it’s far more difficult to convey depth of network, especially on a resume, but even in-person as well.”

Thoughts, Hubsters? How much is b-school truly worth? Email me at lbeltran@buyoutsinsider.com

FundraisingBlackstone‘s second fund that looks to buy minority stakes in alternative asset managers will be seeking $3.3 billion, Bloomberg reports. This comes just weeks since news emerged that Blackstone is near a deal to buy a less than 10 percent stake in New Mountain Capital.

Kirk Falconer has a story on Clairvest Group, which has set an C$800 million ($625 million) target for its sixth mid-market fund. This would be the largest in the private equity firm’s 31-year history, Kirk says.

I have a story on Tritium Partners, the Austin private equity firm founded by former Austin Venturesexecutives, which is out marketing its second fund. Tritium has also put GIACT Systems up for sale. Find out how much they’re seeking here.

DealsKKR has closed its $8.5 billion buy of BMC Software. Sellers include Bain Capital Private Equity andGolden Gate Capital together with GICInsight Venture Partners, and Elliott ManagementCheck out our brief here.

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