Blackstone To Buy Hedge Fund Stakes

Feb 13 2013 | 1:38pm ET

The Blackstone Group will begin investing in hedge fund managers with a new unit run by a former Barclays executive.

The New York-based alternative investments giant has hired Anthony Maniscalco to lead the new business, which will take stakes in hedge fund firms. Blackstone joins the likes of Goldman Sachs, Neuberger Berman and Kohlberg Kravis Roberts in seeking a piece of the hedge fund business through minority stakes.

Blackstone sees opportunities in the space as hedge fund founders prepare succession plans, Bloomberg News reports. The firm will reportedly target about 12 hedge fund managers with between $3 billion and $5 billion in assets, seeking to take stakes of between 15% and 20%. Blackstone will favor firms that aren't dependent on a single manager.

And unlike most of its peers in the business, Blackstone's stakes will not be entirely passive; the firm will have a say on material changes at its stable of funds. The firm would hope to profit by selling its share in an initial public offering or on the secondary market.

Blackstone last year began to market a new fund to buy stakes in hedge fund firms on the secondary market.

Maniscalco was head of alternative asset management at Barclays prior to joining Blackstone.


In Depth

Q&A: Omni Macro Fund Bullish On India, Watching China

Mar 4 2015 | 3:35pm ET

Omni Macro Fund was formed in 2007 by Stephen Rosen, previously a prop trader at...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Risk Management: The Due Diligence Challenge And Branding Opportunity

Mar 2 2015 | 8:41am ET

The hedge fund firms that make it easier for prospective investors to gain comfort...

 

Editor's Note