Blackstone cashes out Bumble: Nearly 98% IRR achieved

Blackstone Inc. is reportedly finalizing its departure from Bumble Inc., a move that has reportedly doubled the private equity firm's investment. This exit comes as Bumble's stock has experienced a significant downturn, falling approximately 96.1% since its initial public offering in 2021. Despite the app's declining share value, Blackstone has achieved an impressive 98% internal rate of return by systematically divesting its stake.

Blackstone's strategy involved capitalizing on Bumble's debt to issue a substantial dividend in late 2020. Further significant sales occurred during Bumble's IPO and again in 2021 when shares were trading above $50. By the close of 2023, Bumble's stock had fallen below $14, illustrating the effectiveness of Blackstone's early divestment.

As Blackstone accelerates its stock sales, it has also relinquished its board seats within Bumble. The dating app is currently facing a year-over-year decline in paying users, leading to speculation that a private equity group might be the most logical buyer to navigate the company's turnaround under less public market pressure.