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Blackstone Boosts Hedge Fund Seeding Power
11 Feb
Summary
- Blackstone is consolidating units to compete better.
- New structure allows for larger initial investments.
- This move reflects industry shifts towards larger platforms.
Blackstone Inc. is integrating its unit that supports startup hedge funds into its larger Absolute Return business, a strategic move designed to bolster its competitive edge in the industry. The firm's Strategic Alliance Fund will now operate within the Absolute Return platform, enhancing its capacity to compete with major players.
This restructuring enables Blackstone to combine capital from SAF, Absolute Return, and its family office channels. Consequently, new investment firms can now receive between approximately $250 million and $450 million, a significant increase from the typical $150 million SAF previously offered. This greater scale offers potential fee advantages and increased support for sought-after trading talent.
David Ben-Ur, chief investment officer of Blackstone's Absolute Return platform, stated that operating as a single platform enhances efficiency for both managers and clients. It allows for a more coordinated approach to offering capital, long-term partnerships, and distribution services.
