Blackstone is joining forces with asset management companies Vanguard and Wellington Management in a “strategic alliance” aimed at creating hybrid public and private funds for wealthy individuals and retirees.
The three groups said on Tuesday that they would work together to create blended products containing both public and unlisted assets, and funds with exposure to active and passive investments.
While Blackstone, Vanguard and Wellington did not announce any specific products, stating that such details would be announced in the coming months, the three-way partnership underscores the latest push by the private equity and credit industry into the portfolios of individual investors.
The alliance signals that alternative asset management companies such as Blackstone increasingly believe they can blend unlisted investments from their investment portfolios with public debt and equity products.
The three firms said they aimed to build “fully diversified portfolios that incorporate private assets and pursue higher returns” for individual savers.
The deal also highlights the persistent efforts of traditional managers such as Vanguard, the world’s second-largest asset manager, to bolster their private capital offerings.
“Vanguard and Wellington have worked closely together for 50 years and have long admired Blackstone’s capabilities,” said Jean Hynes, chief executive of Wellington Management.
In recent months, private capital giants including Apollo Global, Partners Group and KKR have worked with asset managers including State Street, BlackRock and Capital Group to create new private funds for more mainstream investors.
The private market deal between the three managers comes as levels of volatility in public investments have hit multi-year highs in the wake of US President Donald Trump’s tariffs blitz.
Blackstone president Jonathan Gray said the partnership announced on Tuesday would “further expand the benefits of private markets” for Vanguard and Wellington’s clients.
