The company said in a statement that Blackstone would inject €150 million of fresh capital into the label and will also buy €60 million'worth of shares from the family holding company, Givi.
Versace said the family would remain "at the heart of the company", which was founded by the flamboyant late fashion designer Gianni Versace in the 1970s and is known for its colourful and Baroque designs.
The Milan-based fashion label is currently 30-percent owned by Gianni's brother Santo, who is the chairman, 20 percent by his sister Donatella, the creative director, and 50 percent by her daughter Allegra.
"This investment in the company, together with our clear direction and our outstanding management team, will enable us to achieve Versace's potential," Donatella Versace said in the statement.
Versace also said it would release its 2013 results next month and expected to announce an 18-percent increase in revenues to €480 million.