WEST PALM BEACH, FL (www.hedgeco.net) – The Blackstone Group is reportedly gearing up to launch a new hedge fund according to news reports. This is another step by a major private equity firm to jointhe ever-growing hedge fund industry. According to sources familiar with the launching, Blackstone had a private lunch party for the new fund at New York�s Astoria hotel this past week. The newBlackstone hedge fund will be trading in the distressed debt market, the company will be making an announcement for the new fund shortly according to informed sources.
This launching by Blackstone is the firm�s first proprietary hedge fund, as demarcation lines between hedge funds and buy-out equity groups continues to dwindle. Many hedge funds have also ventured into private equity business, and have been criticized by private equity groups who feel threatened from the speed and efficiency with which hedge funds conclude such deals. There is also a concern by private equity groups about piles of money available to hedge fund managers; such cash may facilitate the process for hedge funds, at the disadvantage of private equity groups some believe.
Blackstone has signed up with Citigroup as well as Bear Stearns for its hedge fund prime brokerage business, according to published reports.
Now with the growing number of private equity groups establishing their own hedge funds, the demarcating line between hedge funds and private equity firms continues to shrink. The Blackstone Group declined to make comments about their proposed hedge fund. Hedge funds continue to attract new investors as assets under management have since topped $1 trillion.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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