The Blackstone Group and Patria, a Brazilian alternative asset manager, have formed a partnership in which Blackstone would purchase a 40 per cent stake in Patria and the two firms would agree to cooperate in building their businesses in Brazil and throughout South America.

Stephen A. Schwarzman, chairman and chief executive of Blackstone, says: “We have known and respected Patria, whose business parallels ours in so many respects, for over ten years. Brazil is the largest economy in Latin America and growing rapidly. Partnering with Patria will enable Blackstone’s limited partners and advisory clients to benefit from the fast expanding business opportunities in the country, as well as from Patria's deep knowledge of the local market. We envisage us both taking advantage of a wide spectrum of opportunities ranging from financial advisory services to real estate, private equity, capital management and infrastructure.”

Luiz Otavio Magalhães, founding partner and chief executive of Patria, adds: “We are very pleased to announce this agreement. It represents one of the most significant partnerships to be established in Brazil’s financial industry. We are delighted to be working closely with Blackstone, whose core values we share. Patria’s clients will benefit from Blackstone’s global network for both investment opportunities and corporate advice.”

The transaction is expected to close on 1 October 2010.