Blackstone loses fund of funds CIO

Blackstone will not replace Bruce Amlicke, who is leaving the firm to spend time with his family.

The Blackstone Group’s fund of funds chief investment officer, Bruce Amlicke, is leaving the firm to spend more time with his family, according to a person familiar with the matter.

Amlicke, who joined Blackstone in 2004 from UBS, will not be replaced.

Blackstone declined to comment, but reportedly told The Wall Street Journal: “The extensive commute to the New York City office from his home in Connecticut and the demands of his job have weighed very heavily on Bruce and his family. As a result, he has made this important decision in order to allow him to spend much more time with his wife and children.”

The fund of funds group is part of Blackstone Alternative Investment Management unit, which has more than $30 billion of hedge fund investments. The group is led by J. Tomilson Hill, president and chief executive and vice chairman of Blackstone; Amlicke; Halbert Lindquist, chief investment strategist; Stephen Sullens, head of portfolio management and Brian Gavin, chief operating officer.

Blackstone said in December it was cutting 70 jobs, or 5 percent of its 1,400-member workforce after reporting steep losses in the third quarter of 2008. The publicly listed firm reported a third quarter loss of $509 million, including a $68.3 million loss to the firm’s private equity portfolio. That’s compared to profits of $227.3 million in the portfolio in the same period last year.

The firm said it would have to write down a third of its private corporate investments within its private equity portfolio.