Blackstone Group
Blackstone / CVC Capital
SPACs Launched
2
Total Raised
$1.4B
Avg Investor Return
-51.0%
Bankruptcies
0
Summary
Blackstone and CVC Capital used the Foley Trasimene SPAC vehicle to take Paysafe public at a $9B valuation. The stock plummeted 75%+ as growth stalled. The deal exemplified how PE firms used SPACs to exit portfolio companies at inflated valuations, transferring risk to retail investors while locking in profits.
SPAC Track Record
The Sponsor Economics
As a SPAC sponsor, Blackstone Groupreceived a "promote" — typically 20% of the post-merger company's shares — for a nominal investment of roughly $25,000. Across 2 SPACs raising $1.4B, the promote shares were worth hundreds of millions at IPO prices, regardless of whether the merged companies performed well for public investors.
While investors saw an average return of -51.0%, the sponsor structure ensured that Blackstone Group profited from the deals regardless of outcome — a fundamental misalignment of incentives that defined the SPAC era.