New Blackstone Fund To Buy Hedge Fund Stakes On Secondary Market

Oct 24 2012 | 12:56pm ET

The Blackstone Group will launch a fund of hedge fund managers with as much as $3 billion, seeking to take advantage of the Volcker rule's limits on banks' ownership of the same.

The new private equity fund would buy stakes in hedge fund firms on the secondary market. That could soon be a busy place, as banks seek to offload the ownership interests they've taken in hedge fund general partnerships in recent years. The Volcker rule strictly limits such investments. In addition, some investors in hedge fund firms have seen the value of their stakes fall as the industry has hit upon hard times and mediocre returns.

Blackstone hopes the new fund could make in excess of 20% per year.

Blackstone plans to begin marketing the new vehicle shortly, and hopes to raise between $2 billion and $3 billion, although no formal target has been set, Reuters reports.

The New York-based alternative investments giant indicated last week that it had something up its sleeve. "We have a fund that seeds new hedge fund managers, and by doing that owns a piece of the GP, and we have a new product that we are working on, which we will be announcing shortly but haven't announced yet," Tony James, Blackstone's president, told analysts.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.