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Financial News Online notes that the Blackstone Group warned in its prospectus about the potential for conflicts of interest to arise between unit holders and institutions that invest in the firm's funds. Until now, profits from a fund's investments are returned to investors, less the standard 20 percent carry, which the fund firm keeps. But in the new era, about 60 percent of the carry from funds will go to its public unit holders. These holders are also entitled to profits Blackstone receives from funds. Some think that weakens the 'alignment' between the fund operator and its investors. Blackstone reportedly has said that it will continue to give fund investors priority if any conflicts arise. The prospectus: "Our partnership agreement contains provisions that reduce or eliminate our general partner's duties to the common unit holders." It will be interesting to see how this plays out.