The Blackstone Group LP has teamed up with Fidelity Investments' Portfolio Advisory Service to launch its first daily-valued alternative-investment-focused mutual fund.
Sources familiar with the matter said Fidelity has provided close to $1 billion in funding for The Blackstone Alternative Multi-Manager Fund. The multiasset mutual fund is open to institutional clients of Blackstone.
The fund is also active and available through Fidelity's managed-accounts program.
The fund, announced last month, is an open-end mutual fund managed by Blackstone Alternative Investment Advisors. Its investment objective is to seek capital appreciation by allocating assets among a variety of investment subadvisers with experience managing alternative investment strategies. Blackstone also may manage a portion of the fund's assets directly and may invest in unaffiliated hedge funds.
“In the three years we have been planning for this product launch, we have built a very solid relationship with Fidelity,” said J. Tomilson Hill, vice chairman of The Blackstone Group and chief executive of Blackstone Alternative Asset Management.
James Comtois is a reporter at sister publication Pensions & Investments.