Blackstone, the money-management firm seeking to attract more individual investors, raised almost $1bn from Fidelity Investments for its mutual fund that will invest in hedge funds, Fidelity said.
Blackstone has an exclusive agreement with Fidelity for an undisclosed period covering individual investors, and can offer the fund of funds to its institutional clients, according to a person briefed on the deal, who asked not to be identified because the information is private.
Fidelity managed about $104bn through its portfolio advisory service as of June 30, said Nicole Goodnow, a spokeswoman. Fidelity has discretion over the management of the accounts, which require a minimum investment of $50,000, and the allocation to alternatives is typically 3% to 5%, she said.
The Fidelity program charges clients an annual advisory fee ranging from 0.25% to 1.7% of 'eligible assets invested,' according to the firm’s website.
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