Blackstone Group and Cypress, the US private equity funds, have invested a combined $700m (€620m) in the buy out of General Electric's bond insurance business.

Blackstone and Cypress were among a group of four companies to acquired Financial Guarantee Insurance Company in a $2.2bn deal. They each took 23% stakes with PMI, the US financial services group taking 42%. The fourth investor was CIVC Partners, a US private equity firm.