The Blackstone Group L.P. (BX Quick QuoteBX - Free Report) has acquired a minority interest in New York-based hedge fund, Marathon Asset Management. Terms of the deal remain undisclosed.

Blackstone acquired the stake through its Strategic Capital Holdings Fund managed by Blackstone Alternative Asset Management (BAAM).

Founded by Bruce Richards and Louis Hanover in 1998, Marathon focuses on distressed and special situational credit, structured credit, emerging markets and leveraged loans. The company has around $12.75 billion in assets under management, and it will continue to be led by the existing management team. It will also retain autonomy over its business and investment processes.

J. Tomilson Hill, Vice Chairman of Blackstone and President & CEO of BAAM stated, “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. We look forward to partnering with them in the years ahead.”

Blackstone has made a several investments through Strategic Capital Holdings, which has raised more than $3 billion to purchase stakes of around 15–25% in hedge funds. Last year in May, the company bought a minority stake in Illinois-based hedge fund firm, Magnetar Capital LLC. The fund has also acquired stakes in Senator Investment Group LP and Solus Alternative Asset Management LP.

Currently, Blackstone carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the finance space include LPL Financial Holdings Inc. (LPLA Quick QuoteLPLA - Free Report) , First Bancorp (FBP Quick QuoteFBP - Free Report) and Northwest Bancshares, Inc. (NWBI Quick QuoteNWBI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).

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