Blackstone Group has acquired a minority stake in opportunistic credit money manager Marathon Asset Management, said Andrew Rabinowitz, Marathon's president and chief operating officer.
Terms of the deal and size of the stake are not being disclosed, Mr. Rabinowitz said.
The acquisition was made through Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management.
The investment “helps with institutionalizing our firm, given that we think Blackstone is the premier alternative asset manager,” Mr. Rabinowitz said. “It sends the message that Marathon will be here a very long time.”
The transaction is the fourth of its type for Blackstone, which has raised more than $3 billion to buy stakes of 15% to 25% in hedge funds. The investment will help with succession planning and employee retention at Marathon, Mr. Rabinowitz said. He said the firm will create a board including one non-voting member from Blackstone, the world's largest manager of alternative investments and the biggest allocator to hedge funds.
“We have great respect for the sustainable franchise that Marathon has built and their commitment to customization to meet the evolving needs of their growing institutional investor base,” J. Tomilson Hill, Blackstone's vice chairman, said in a statement.
Separately, Mr. Rabinowitz, said he has taken on the title of president in addition to his longtime COO duties. Bruce Richards, co-founder, was the previous president and will retain his responsibilities as CEO and chairman of the board.
Marathon Asset Management has about $12.8 billion in assets under management.
Bloomberg contributed to this story.
