Sunday, 28 August 2016
Last updated 1 day ago
May 10 2013 | 12:49pm ET
The Blackstone Group has launched a new business designed to tap into potential dissatisfaction with money-market funds.
The new unit, Blackstone Treasury Solutions Advisors, will offer corporations access to its own internal cash-management strategy, one that it believes will become attractive as new regulations threaten to make money-market funds less so.
The new division includes, as portfolio managers, Laurence Tosi, Blackstone's CFO, and Matthew Skurbe, its treasurer. Both men are involved in managing Blackstone's cash strategy. BTSA's other portfolio manager will be Joseph Rocco, who works on credit and risk management.
Regulators in both the U.S. and Europe may require money-market funds to move to floating valuations, rather than a fixed $1 share price. The move would increase risk in the funds, and make higher-yielding, but still conservative, strategies more attractive.
BTSA would have a minimum initial commitment of $50 million and, like hedge and private-equity funds, would charge both management and performance fees. It will invest in a variety of credit products, as well as hedge funds—both Blackstone's own and those managed by outside firms.