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 committee.
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...
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