Blackstone Group
Asset Management Group
IPO 2007
Finance 1516

Asset Management Business

Asset management involves the management of investments by third-party managers for their investors. Asset managers use various strategies that can be divided into these broad categories: traditional equity, fixed income fund strategies and alternative investment strategies (Blackstone Group LP, 2007). The more traditional asset managers manage and trade portfolios of equity, fixed income and or derivative securities. Assets may be invested in investment companies that are registered under the 1940 Act or through separate account managers on their behalf. The traditional fund manager is normally compensated with fees that are a percentage of assets under their management. Alternative asset managers have predefined risk parameters and investment guidelines and use a variety of strategies to achieve the required returns for their clients (Blackstone Group, 2007). This industry has experienced significant growth in worldwide assets under management in the past ten years, partially due to aging populations in both developed and emerging markets around the world that have increased the pools of savings and particularly pension assets. Blackstone has delivered superior returns with a lower correlation to the broader market than traditional asset management strategies. They have helped their clients diversify their investment portfolios by including alternative asset strategies (Blackstone LP, 2007).
Brief History

Blackstone is a leading global alternative asset manager and provider of financial advisory services. They manage assets of approximately $88.4 billion as of May 1, 2007 making them one of the largest independent alternative asset managers in the world. Their asset management businesses includes, management of corporate