Blackstone Starts Cash-Management Unit

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.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of