Magnetar Capital announced that Blackstone (NYSE:BX), through its Strategic Capital Holdings Fund, managed by Blackstone Alternative Asset Management (BAAM), has acquired a minority equity interest in Magnetar Capital Partners, the parent of Magnetar’s General Partner entity.
The investment builds on the mutually beneficial relationship that has existed between the two firms for nearly a decade, and will support Magnetar’s ongoing institutionalization and strategic initiatives. Magnetar’s existing management team will continue to hold the majority of the firm’s equity and will maintain full operational control. Financial terms of the transaction were not disclosed.
Founded in 2005, Magnetar Capital is a leading alternative asset manager with assets under management of $13.6 billion. Magnetar operates in and across three major investment strategies: Global Event Driven, Fixed Income, and Energy. By targeting opportunities that exist between common investment strategies, the firm seeks to build businesses that prioritize alpha generation and deliver repeatable, scalable investment opportunities. Magnetar’s investment process places an emphasis on discipline, combined with sound risk management, and an institutionalized infrastructure.
"We founded Magnetar with the goal of creating a world-class alternative investment franchise grounded in a culture that would allow it to withstand the test of time. Blackstone’s investment provides a catalyst that will help us achieve the Firm’s strategic objectives, which include continuing to attract and retain key talent, increasing our investment in our funds and deepening our relationship with a leader in the alternative asset management sector,” said Alec Litowitz, Founder and CEO of Magnetar Capital.
"We have been invested in Magnetar funds since early in the firm’s history, and have great respect for the organization and its people. Magnetar combines an experienced management team, robust infrastructure, and the ability to attract and retain top investment talent. They’ve also demonstrated nimbleness in adapting their business model to different circumstances and markets. We are confident that they have both the entrepreneurial spirit and the discipline to meet the challenge of continuing to generate attractive risk-adjusted returns over time and to thrive as a long-term franchise," said J. Tomilson Hill, Vice Chairman of Blackstone and President and Chief Executive Officer of BAAM.
“Blackstone has been a supportive partner for nearly a decade, and this investment builds on that relationship. This transaction will help us continue to meet the objectives of our most important stakeholders – our investors and our employees – as we enter the next decade of our firm’s evolution,” said Ross Laser, President and Co-Founder of Magnetar Capital.
Blackstone Alternative Asset Management (BAAM®), Blackstone’s Hedge Fund Solutions platform, is the world’s largest discretionary investor in hedge funds, with $66 billion in assets under management. BAAM manages a diversified set of businesses including a customized solutions business, a special situations platform, a long-only solutions business, a hedge fund seeding business, an open-ended mutual fund platform and a business that purchases stakes in established hedge funds.
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