Exclusive: Blackstone chases Buffett with ‘core’ private equity

(Reuters) – Blackstone Group LP has reached out to its biggest fund investors about investing in a new investment vehicle with a longer investment horizon than the typical 10-year private equity fund, according to people familiar with the matter.

Dubbed “core” private equity, this vehicle would invest in slower-growing but safer companies, use less debt in buyouts and charge investors lower fees than most private equity funds, these people said. Blackstone is seeking as much as $2 billion apiece from five to six of its biggest public pension fund and sovereign wealth fund investors for the strategy, the people said.

A Blackstone spokesman declined to comment. The biggest investors in Blackstone’s funds include the California Public Employees’ Retirement System, the New Jersey State Investment Council and China Investment Corp.