Blackstone Strategic backs those that want to be bigger, better, faster
Thu Feb 3, 2011
Blackstone’s second seeding vehicle, Strategic Alliance II, has just launched with $2.35bn and seeks to invest $100m apiece in 15 to 20 star managers
By Claire Makin
The Blackstone Group may be the biggest player in seeding
space, but the New York-based behemoth prefers not to describe
the business as 'seeding’. The word usually
applies to start-up managers who have no other option but to
approach a seeder, says Greg Hall, who oversees
Blackstone’s Strategic Alliance platform for
emerging managers, along with the Strategic Alliance investment
These typical seeds are not the sort that Blackstone is
looking to fund. Instead, Blackstone’s start-ups
usually have plenty of other funding options, but want the
extra boost that a partnership with Blackstone offers. "They
are hoping for a higher probability of being bigger and better,
faster than they would otherwise be," Hall says.
It is a fine distinction, but a crucial one for Blackstone,
which hands out a minimum ticket of $100 million to a select
group of new managers. The firm’s...
ISSN: 2151-1845 / CDC10004H
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