Blackstone to Launch Europe’s Fund of Hedge Funds
The 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
