Blackstone Folds Hedge Fund Seeding Into $60 Billion Business

Blackstone Inc. is moving its unit that backs startup hedge funds into the $60 billion Absolute Return business, giving itself scale to compete with the multistrategy industry giants writing ever-bigger checks to attract trading talent.

The restructuring will see Blackstone’s Strategic Alliance Fund run within Absolute Return, with seeding deals sourced and executed by the team that allocates capital across hedge funds and other strategies, according to the US investment firm.