Entrata secures $4.3 billion valuation after Blackstone investment

By Pritam Biswas and Arasu Kannagi Basil

May 15 (Reuters) - Entrata on Thursday announced a $200 million minority investment from alternative asset manager Blackstone BX.N, valuing the property management software provider at $4.3 billion.

The deal highlights the growing prevalence of minority investment transactions as private equity firms increasingly attempt to diversify their investment strategies.

"This investment from Blackstone represents a powerful alignment of capital and expertise that will allow us to bring world-class technology to an expanded footprint of owners, operators and residents," said Entrata CEO Adam Edmunds.

Founded in 2003, Entrata's products enable property managers and residents to handle tasks such as tracking work orders, managing finances, and processing online payments.

The Lehi, Utah-based company currently serves over 12 million residents across 35,000 multi-family communities globally. The new investment will allow Entrata to expand this footprint in the rental housing industry.

The funding will push Entrata deeper into AI-driven property operations and give it access to Blackstone's vast real-estate ecosystem, said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors.

Getting all that at a sturdy valuation without displacing Silver Lake's majority governance "underscores why minority deals are the preferred playbook in 2025," Schulman added.

Earlier this week, insurance brokerage giant Hub International was valued at $29 billion in a minority investment round. Last week, performance marketing firm Liftoff notched a $4.3 billion valuation after General Atlantic bought a minority stake from Blackstone.

Blackstone's minority investment in Entrata comes roughly four years after private equity firm Silver Lake took a majority stake in the company.

Wilson Sonsini Goodrich & Rosati served as legal advisor on the funding to Entrata.

In 2021, Entrata had raised $507 million from investors including Silver Lake and Dragoneer, in what was its first institutional round of capital raising.