James said the strategy would take time and would depend on hiring the right people, but it was possible for the firm to eventually have between $5 billion (€4.3 billion) and $10 billion dedicated to hedge funds.
Earlier this year, John Dionne joined Blackstone from Bennett Restructuring Funds, a $1 billion hedge fund, to run the firm’s new $500 million distressed debt fund.
The reach of Blackstone is expanding far and fast. The firm is expected to announce soon the final closing of its latest private equity fund at around $13 billion. In addition, its next real estate fund is predicted to collect between $5 billion and $6 billion, while a move into mutual funds is also reported to be a target for the group.