Blackstone Group has bought a minority stake in the hedge fund Magnetar Capital, putting a period on at least one part of the financial crisis.
Magnetar and its complex dealings in the mortgage market were the subject of a Pulitzer-prize winning investigation by Pro Publica. The SEC never found any wrongdoing at Magentar, but other firms paid $435 million in civil fines to settle charges relating to Magnetar deals.
According to the Wall Street Journal, Illinois-based Magnetar manages $13.6 billion, and was given a multibillion-dollar valuation in the Blackstone deal.
The size and price of the Blackstone stake was not disclosed.
Blackstone bought the Magnetar stake through its $3 billion private equity fund, Strategic Capital Holdings. The fund has also bought stakes, usually between 20% and 30%, in Solus Alternative Asset Management and Senator Investment Group. Blackstone is believed to have found Magnetar appealing because it survived regulator scrutiny.
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