Sunday, 25 September 2016
Last updated 1 day ago
Aug 13 2013 | 10:21am ET
The Blackstone Group has won a powerful backer for its new mutual fund of hedge funds.
Fidelity Investments' high-net worth Portfolio Advisory Service has raised nearly $1 billion for the Blackstone Alternative Multi-Manager Fund, the mutual-fund giant said. The new product invests with a variety of sub-advisors, including Two Sigma Advisors, Credit Suisse Hedging-Griffo Servos Internacionais, Caspian Capital, Wellington Management Co., Chatham Asset Management and Nephila Capital.
"In the three years we have been planning for this product launch, we have built a very solid relationship with Fidelity," Blackstone Alternative Asset Management CEO Tom Hill said. "Like Blackstone, Fidelity is a leader in the asset-management industry and has a history of providing great value to its clients."
Under the arrangement, Fido and Blackstone have an exclusive agreement covering individual investors for an undisclosed period of time. Blackstone can still sell the fund itself to institutional clients.
The Multi-Manager fund charges a 3.25% annual expense ratio.