Blackstone to Launch Europe’s Fund of Hedge FundsThe world’s largest allocator to hedge funds Blackstone Alternative Asset Management, is launching a regulated fund of hedge funds in Europe.
Blackstone is looking to raise several hundred million dollars for a fund that can be sold to investors who cannot typically invest in offshore hedge funds, according to several people familiar with the plans.
The launch, using Europe’s Ucits structure for cross-border retail investment funds, is set to happen this year but a date has not been chosen. Alternative Ucits are tightly regulated hedge fund products, typically domiciled in tax-neutral jurisdictions such as Ireland or Luxembourg. They provide investors with greater liquidity than traditional hedge funds.
Ucits funds meet EU requirements for sales to retail investors and are subject to tougher rules than offshore funds domiciled in jurisdictions such as the Cayman Islands. The restrictions govern what kind of assets the funds can invest in, and demand minimum levels of diversification and transparency. There are also restrictions on leverage.Source: Financial Times