BlackRock acquires fund of funds

Despite the hedge fund woes we're now seeing, it's fair to say that asset managers of all stripes are bent on getting into alternative investments. The conventional wisdom is that that is what high net worth customers want. The latest example is BlackRock's $1.7 billion deal for the "fund of funds" unit of the Quellos Group, based in Seattle. Big name asset managers, like Goldman Sachs and Morgan Stanley, are moving to offer more private equity and hedge funds to clients. The fund of funds move would allows BlackRock customers to buy exposure to high-risk, high-return investments like hedge funds and private equity in a more diversified way. The firm could also lower the minimum investment bar most likely.

For more:
- here's a New York Times article
- How high net worth customers see things. Article