Blackstone, Grosvenor To Run Texas Permanent Direct Hedge Program

Apr 19 2012 | 12:33pm ET

The Texas Permanent School Fund's decision to dump funds of hedge funds in favor of direct investing hasn't proved a disaster for its funds of funds—not all of them, anyway.

In fact, two of them will be overseeing even more under the direct plan than they do now. The $24 billion endowment will ask Blackstone Alternative Asset Management and Grosvenor Capital Management to handle "strategic partnerships" that will handle the Permanent fund's $2.5 billion hedge fund portfolio. Currently, Blackstone manages $637 million and Grosvenor $770 million for the fund.

The other funds of funds currently running just over $1 billion for the Permanent Fund are not so lucky: They're to be terminated.

The plan, which could save the Permanent fund some $35 million in fees over the next five years, now goes to the Texas state Board of Education. The board will consider it tomorrow.


In Depth

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

Near Term Consolidation In Bullish U.S. Dollar Trend

May 11 2015 | 11:38am ET

The US Dollar is in a multi-year bull market, according to Conor O’Mara, investment...

 

Editor's Note