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  • January 2019 (Revised March 2020)
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Blackstone Alternative Asset Management in 2018

By: Emil Siriwardane, Luis M. Viceira and Shawn O'Brien
  • Format:Print
  • | Language:English
  • | Pages:20
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Abstract

In early 2018, Blackstone announced that John McCormick would succeed Tom Hill as President and Chief Executive Officer of Blackstone Alternative Asset Management (BAAM), the largest fund-of-hedge funds in the world by a sizeable margin. As new CEO, McCormick must decide on strategic growth options for the firm as its traditional FOF business is maturing and growth in its nearly $80 billion in assets under management (AUM) is plateauing. In the recent past, BAAM had expanded into other investing businesses, making direct investments, seeding early-stage hedge funds, taking general partner stakes in investment management firms, and offering alternative investment products to retail investors. To determine the appropriate path forward, McCormick must assess whether BAAM has a competitive edge in each of these platforms, as well as if further expansion could create internal conflicts of interest within BAAM and, more broadly, Blackstone.

Keywords

Asset Management; Expansion; Strategy; Decision Choices and Conditions; Financial Services Industry

Citation

Siriwardane, Emil, Luis M. Viceira, and Shawn O'Brien. "Blackstone Alternative Asset Management in 2018." Harvard Business School Case 219-063, January 2019. (Revised March 2020.)
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About The Authors

Emil N. Siriwardane

Finance
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Luis M. Viceira

Finance
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Related Work

    • January 2019 (Revised March 2020)
    • Faculty Research

    Blackstone Alternative Asset Management in 2018

    By: Emil Siriwardane and Luis M. Viceira
    • January 2019 (Revised March 2020)
    • Faculty Research

    Blackstone Alternative Asset Management in 2018

    By: Emil Siriwardane, Luis M. Viceira and Shawn O'Brien
Related Work
  • Blackstone Alternative Asset Management in 2018 By: Emil Siriwardane and Luis M. Viceira
  • Blackstone Alternative Asset Management in 2018 By: Emil Siriwardane, Luis M. Viceira and Shawn O'Brien
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