Search
 

Blackstone Consolidates, Spins Off Funds

NEW YORK CITY-The Blackstone Group is combining its distressed securities fund operations while spinning off the Kailix Advisors business.

By Paul Bubny | Updated on December 24, 2008

NEW YORK CITY-Private equity firm the Blackstone Group is consolidating its distressed securities hedge funds into a single operating platform. At the same time, the company will spin off its long/short equities fund to the fund’s management team.

According to a release, Blackstone will combine the distressed fund with its GSO credit investment business, a move the company says will eliminate duplication, benefit from shared intellectual capital and better serve investors. Blackstone had purchased GSO Capital Partners last March for $930 million. Investors in Blackstone’s distressed securities fund will be able to transfer their capital on preferred terms to distressed strategies managed by GSO, while the existing fund will be liquidated.

The investment manager of Blackstone’s long/short equities fund, Blackstone Kailix Advisors will be spun off to its management team led by Manish Mittal, who intends to form a new fund as an independent entity. Blackstone will be an investor in the new fund and investors in the existing fund will be offered the option of investing in the new fund on a preferred basis as their interests in the existing fund are liquidated.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.