Blackstone buys stake in Solus event-driven hedge fund

Blackstone Group LP bought a stake in Christopher Pucillo's$5.7 billion Solus Alternative Asset Management, paving the way for the exit of two of the hedge fund firm's founding partners. The sale allows Nick Signorile and Chris Bondy to "monetize their ownership stake in the firm and begin a transition process," reports Bloomberg.

The transaction is the second of its type for Blackstone, which has raised more than $3 billion to buy stakes of 15% to 25% in established hedge funds. Tom Hill, head of Blackstone's hedge fund business, is targeting firms like Solus whose founders are seeking to cash out, plan for succession or buy out seed investors. Blackstone's first deal was with Senator Investment Group, a fund it had provided with start-up money.

Hedge funds no longer attractive targets for banks, reinsurers

For banks and reinsurers, hedge fund managers aren't the hot acquisition target they were before 2008. Nor are hedge funds so anxious to sell themselves to those more highly regulated entities, reports Institutional Investor. Swiss RE, the world's second-largest reinsurer, is looking to sell its 15% stake in Brevan Howard Asset Management. Morgan Stanley reportedly wants to unload its position in Lansdowne Partners. Senior management of Highbridge Capital Management are keen to gain independence from their parent owner, JPMorgan Chase & Co. And a 20% stake in D.E. Shaw & Co. has languished in the Lehman Brothers Holdings bankruptcy estate since 2008.

Hedge funds monetizing by selling stakes to institutional investors

According to a report from Deloitte's Center for Financial Services, One of the top three trends occurring in t......................

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This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.