Jon Korngold has been busy building out a division within Blackstone dedicated to investing in fast-growing companies.This story requires our BI Prime membership. To read the full article,Jon Korngold has been busy building out a division within Blackstone dedicated to investing in fast-growing companies.
Then, in January, he joined asset management giant Blackstone to lead an ambitious new growth equity push, charged with finding fast-growing companies to write big checks to. He's fresh off his first investment at his new firm, co-leading a deal earlier this month to acquire a $3 billion controlling stake in MagicLab, the owner of dating app Bumble.
We talked to more than a dozen people who have worked with Korngold, and Korngold himself, to learn more about the man who is meeting with investors all over the world andIn leading the division, Korngold has become a new entrant to an elite club atop billionaire Stephen Schwarzman's house of financiers overseeing more than $554 billion assets under management.
Going from General Atlantic, with 340 employees in 14 offices focused purely on growth equity, he will have to adapt to a larger pond, with 2,500 employees in 24 offices worldwide, and business lines spanning infrastructure, credit, real estate, hedge fund solutions and private equity. Korngold had a hard time with the decision, given his tenure at General Atlantic, people close to him said. Friends characterize him as a family man who makes time for his two kids despite a busy travel schedule, throwing Halloween costume parties and coaching his son and daughter's sports teams.
GA also funded its investments from a single pool of capital, rather than a series of separate funds. This, he said, meant fewer time constraints when investing.: "Best idea wins, as opposed to having the pressure to deploy capital, potentially in an unnatural time in the cycle, because that's when your fund's mandate or regional mandate requires that you invest it."
At Blackstone, he said, he could take fewer bets. Korngold told us that he'd like to execute between four and five deals a year, finding just the right companies worthy of a $200 million or $500 million check, the sweet spot for BXG investments.