Blackstone to Start Seeding Hedge Funds

Stephen Harris

20 November 2006

US-based Blackstone Alternative Asset Management will start seeding hedge funds next year as part of its $15 billion European fund of hedge funds operation. The company will target start-ups in which the individuals could raise capital without its help but might benefit from the Blackstone name, according to Blackstone managing director, Gideon Berger. As a further marker, Mr Berger said that Blackstone were not looking for managers who were willing to give up 1 per cent of revenue participation for $1 million in capital, the industry standard. “The type of person who is going to give you 30 per cent of their business for $30 million is not the business you want to invest with,” he said.