Bloomberg – The firm, already the largest allocator in hedge funds, is setting its sights on buying stakes in the money managers. Senator Investment Group LP, a $6.7 billion firm, told clients yesterday that Blackstone bought a minority piece of its business, less than a week after Hill, who runs the New York-based firm’s $56 billion hedge-fund group, outlined his ambitions for that business.
Blackstone, the world’s biggest manager of alternative assets, struck the agreement with Senator as it seeks to raise $3 billion for similar purchases. The firm has gathered $1.4 billion for the strategy, Hill, 65, said last week at a conference in Florida. Blackstone has also provided about $2.6 billion in startup capital to new managers, providing them with $100 million to $200 million, according to a report by Credit Suisse Group AG.
