Blackstone Group LP (BX:US), the New York investment firm with $205 billion in assets, is planning a fund to buy stakes in hedge-fund managers as it continues to expand beyond private equity.
The new fund may seek between $2 billion and $3 billion, according to a person familiar with the plans who asked not be named because the fund hasn’t been formally launched. Christine Anderson, a spokeswoman for New York-based Blackstone, declined to comment.
Chairman Stephen Schwarzman has bolstered Blackstone’s offerings in hedge funds, credit and real estate as the market for traditional corporate takeovers wanes. The new effort would expand Blackstone’s hedge-fund unit, a $46.2 billion business managed by J. Tomilson Hill.
Blackstone President Tony James alluded to a new hedge-fund product last week during the firm’s quarterly earnings call with investors. He spoke about Blackstone’s existing business backing startup hedge funds.
“We have a fund that seeds new hedge-fund managers and by doing that owns a piece” of the management company of the fund, he said on the Oct. 18 call. “We have a new product we’re working on which we’ll be announcing shortly.”
Plans for the new fund were reported earlier today by Reuters.
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