(Bloomberg) -- David Blitzer — “Blitz,” as he’s known to many — is among the last of the swashbuckling investment personalities at Blackstone Inc.
Since joining the firm in 1991, Blitzer has gone from starting its European private equity business to leading a $35 billion tactical opportunities unit that epitomizes Blackstone’s shift into all kinds of alternative assets, becoming a billionaire and sports titan in the process.
Now Blitzer, 54, is laying the groundwork for his next act.
The $5.2 billion fund that “Tac Opps” raised last year, its largest ever, was widely known inside the firm as Blitzer’s swan song, according to people familiar with the matter. Internally, discussions are underway regarding Blitzer formally ceding day-to-day responsibilities at the unit, which has an unconstrained mandate to invest across various strategies, and then settle into an advisory or chair role. That could happen as soon as the end of this year, said the people, who asked not to be identified because the discussions are private.
The top contender to take over is Chris James, the chief operating officer of the unit who has had a hand in acquisitions that transformed Blackstone. James, 48, known inside the firm as CJ, has been increasing his public appearances and was named chair of the firm’s first private equity fund for rich individuals.
A Blackstone representative declined to comment.
Cultural Mainstay
All told, Blitzer scaling back would mark another handoff by a high-profile cultural mainstay at the firm, and underscore how investment decisions at Blackstone have been driven less by personalities and more by committee as it has grown into a $1 trillion giant.
He’s one of the longest-tenured Blackstone executives and known to be a favorite of Chief Executive Officer Steve Schwarzman, who calls him “Blitzy.” Others big names to have left include Tony James, who retired in 2022, and Bennett Goodman, Doug Ostrover and Tripp Smith, who founded the firm that was the precursor to Blackstone’s credit arm.
Blitzer, who sits on Blackstone’s management committee, has been the face of Tac Opps since its founding in 2012. It has grown into a behemoth that can do deals alongside the firm’s other teams and make bets spanning equity and credit, underscoring private equity’s expansion beyond its buyout roots.
The unit was a testing ground for some thematic bets made across the firm, such as growth equity, which typically involves taking stakes in late-stage startups. Blitzer’s group invested alongside the buyout and growth arms in online dating company Bumble Inc.
Tac Opps has also been magnifying Blackstone’s investments in data centers. It has played a big role in financing CoreWeave, the cloud-computing business backed by Nvidia Corp.
The unit structures bespoke funds for investors as well. Key executives include Jasvinder Khaira, who leads investments in digital infrastructure, software and consumer deals, and Qasim Abbas, who leads Tac Opps’ strategy in Europe.
Yet Blitzer is increasingly known for building a sports-focused empire outside of Blackstone.
He has pursued myriad personal investments through Harris Blitzer Sports & Entertainment, which he started with Apollo Global Management Inc. co-founder Josh Harris, as well as Bolt Ventures, his family office.
HBSE owns stakes in teams including the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils. Blitzer, a minority owner of MLB’s Cleveland Guardians, also co-owns Jupiter Links Golf Club alongside Tiger Woods’ TGR Ventures, and has backed closely held companies including apparel-maker Rhone, fast-casual chain Mighty Quinn’s Barbecue and supplement-maker Athletic Greens.
©2024 Bloomberg L.P.