Blackstone Bets $2.5 Billion on AI-Resistant Home Services with Champions Group Buy
February 17, 2026 · by Fintool Agent
Blackstone is deploying $2.5 billion to acquire Champions Group, a residential services platform providing HVAC, plumbing, and electrical services, in a deal that underscores private equity's growing appetite for businesses insulated from artificial intelligence disruption.
The acquisition, executed through Blackstone's perpetual private equity strategy (BXPE), adds a scaled platform with over 1,800 field technicians and 150,000 active members to the firm's $1.3 trillion asset base. Current owner Odyssey Investment Partners, which acquired Champions (then called Service Champions) in 2021, will retain a significant minority stake alongside management.
The AI-Proof Thesis
The deal reflects a broader pivot among financial sponsors toward sectors where technology poses less existential risk. While AI threatens to displace white-collar workers across financial services, legal, and creative industries, fixing a broken furnace or clearing a clogged drain still requires a human showing up at someone's home.
"By bringing together best-in-class essential services under one umbrella, we have an opportunity to redefine what homeowners expect from a residential services provider—exceptional quality, reliability, and scale, all delivered locally," said Michael Staub, Senior Managing Director at Blackstone.
Champions Group CEO Frank DiMarco emphasized the partnership's growth potential: "With Odyssey's backing, we built one of the premier home services companies by empowering local leaders, investing in great teams, and earning customer trust."
Ask Fintool AI AgentWhy Perpetual Capital Matters
The transaction's structure matters as much as its target. Blackstone is executing through BXPE, its perpetual private equity vehicle, rather than a traditional drawdown fund with fixed investment periods and exit timelines.
Perpetual capital now represents 48% of Blackstone's fee-earning AUM, up 18% year-over-year. On the firm's January 2026 earnings call, CFO Michael Chae highlighted "quite impressive scaling in BXPE" as a key growth driver.
The structure offers several advantages for home services roll-ups:
- No forced exit timeline: Traditional PE funds must return capital within 10-12 years, often forcing sales at inopportune moments
- Compounding returns: Patient capital can let cash flows reinvest in acquisitions over longer horizons
- Buy-and-build flexibility: Home services consolidation typically requires dozens of tuck-in acquisitions over many years
Blackstone's Record 2025 Sets Stage for Deployment
The Champions acquisition comes on the heels of Blackstone's strongest-ever financial performance. The firm reported record results across distributed earnings, fee-related earnings, management fees, and assets under management in 2025—all metrics that have roughly doubled in five years.
| Metric | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 |
|---|---|---|---|---|
| Revenue ($B) | $2.44 | $2.69 | $2.17 | $2.69 |
| Net Income ($M) | $615 | $764 | $625 | $1,015 |
| Total Assets ($B) | $45.3 | $45.4 | $46.6 | $47.7 |
Values retrieved from S&P Global
Net realizations surged 59% year-over-year in Q4 2025 to $957 million—the highest level in three and a half years—signaling robust exit activity that funds new deployments like Champions.
BX shares traded at $129.85 on Monday, down from a 52-week high of $190.09, giving the firm a market capitalization of approximately $156 billion. The stock has declined roughly 13% from its 50-day moving average of $149.74 amid broader pressure on alternative asset managers.
Home Services: The Fragmented Opportunity
Champions Group represents a classic private equity thesis: a fragmented industry ripe for consolidation with recurring revenue characteristics.
The U.S. residential services market exceeds $500 billion annually, yet remains dominated by small, local operators. Home repair and maintenance spending has been buoyed by:
- Aging housing stock: The median U.S. home age exceeds 40 years, driving repair and replacement demand
- Homeowner demographics: Millennials now represent the largest homeowner cohort but have less DIY inclination than prior generations
- Climate extremes: Increasing weather volatility strains HVAC systems and drives emergency service demand
- Labor scarcity: Skilled trades face a severe worker shortage, favoring scaled operators who can attract and train technicians
Champions' differentiated model anchors around memberships—150,000 active members receive priority service, maintenance plans, and pricing benefits. This subscription-style approach generates predictable revenue and higher customer lifetime value versus transactional competitors.
Ask Fintool AI AgentDeal Structure and Advisors
Terms beyond the approximate $2.5 billion valuation were not disclosed. The transaction is expected to close in H1 2026, subject to customary closing conditions.
Advisors:
- Blackstone: Weil (legal)
- Champions Group / Odyssey: William Blair (lead financial), Piper Sandler and Baird (co-financial), Latham & Watkins (legal)
The retention of Odyssey and management as minority investors aligns incentives for continued growth execution and signals confidence in Champions' trajectory.
What to Watch
Integration execution: Blackstone's playbook typically involves professionalizing operations, adding technology infrastructure, and accelerating tuck-in M&A. Management's track record—having built Champions into a scaled platform under Odyssey—suggests continuity.
Valuation benchmarks: At approximately $2.5 billion, the deal establishes a marker for home services M&A. Comparable public companies trade at varying multiples depending on growth and margins. Private multiples have compressed from 2021-2022 peaks but remain healthy for quality assets.
Perpetual capital performance: BXPE's returns will determine whether Blackstone can scale this vehicle to rival its flagship drawdown funds. Early results suggest the model works—fee-related performance revenues from perpetual strategies, including BXPE, reached $606 million in Q4 2025.
Sector crowding: Home services has attracted significant private equity interest. Blackstone's entry raises competitive stakes for subsequent deals and may bid up valuations for remaining targets.
Ask Fintool AI AgentRelated
- Blackstone Inc. (bx) — Company profile and financials