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

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note