Case | HBS Case Collection | June 2013 (Revised July 2013)

Blackstone Alternative Asset Management

by Robin Greenwood, Luis M. Viceira and Jared Dourdeville

Abstract

This case explores reasons for Blackstone Alternative Asset Management's (BAAM's) growth from 2007-2013, a time when the overall fund of hedge funds industry contracted substantially. Additionally, the case analyzes evolving business models and value propositions within the fund of hedge funds industry. J. Tomilson Hill, CEO of BAAM and Vice-Chairman of The Blackstone Group, is the protagonist. At the time of the case, BAAM was considering two potential directions for future growth: 1) providing hedge fund products for the defined contribution pension space, and 2) beginning direct internal "manufacturing" of investments. In the context of the current fund of hedge funds industry, the case considers challenges and opportunities for these potential new areas for growth.

Keywords: hedge fund; fund of hedge funds; hedge fund industry growth; fund of hedge funds industry growth; evolving business models; value propositions in the fund of hege funds industry; Financial Services Industry; New York (city, NY);

Citation:

Greenwood, Robin, Luis M. Viceira, and Jared Dourdeville. "Blackstone Alternative Asset Management." Harvard Business School Case 213-129, June 2013. (Revised July 2013.)