Blackstone Bulks Up on Hedge Funds With Magnetar Stake
Blackstone has taken a minority stake in Alec Litowitz's $13.6B hedge fund Magnetar Capital. It brings Blackstone's hedge fund unit, Blackstone Alternative Asset Management, to $66B in assets and is the latest in a string of private equity players expanding their hedge fund holdings. It also currently owns stakes in Senator Investment Group and Solus Alternative Asset Management. BAAM, which is run by J. Tomilson Hill, has raised $3B to bulk up its portfolio. Financial terms of the deal were not disclosed but the Blackstone unit is believed to have bought between a 15% and 25% stake in the fund, as it did with its other two hedge fund assets. Blackstone is the world's largest real estate PE firm and has recently doubled down on its investments in the fix-and-flip home market.