Blackstone buys stake in Marathon

New York

BLACKSTONE Group LP bought a minority stake in Marathon Asset Management, a move that will provide the US$12.8 billion hedge fund firm with permanent capital and help it to grow.

Marathon, which focuses on distressed-debt investing, will retain its independence and control of the fund, said Andrew Rabinowitz, the firm's newly appointed president. The terms, which were not disclosed, were finalised earlier this week, he said.

The investment "helps with institutionalising our firm, given that we think Blackstone is the premier alternative asset manager," Mr Rabinowitz said. "I…