Blackstone, Vanguard, Wellington to Launch Private Markets Fund

Blackstone Inc., Vanguard Group and Wellington Management Co are launching a fund that will invest in public equities, bonds and private markets, as part of their effort to expand private-market offerings to retail clients.

The firms have laid out plans for an interval fund, through which investors will be able to make quarterly withdrawals capped between 5% and a quarter of the fund’s net-asset value. according to a filing Wednesday.

The trio partnered up earlier this year, amid a rising trend of ventures between firms that typically manage public stocks and bonds and those that invest in alternatives.

Wellington will manage the interval fund — the first from the partnership — and draw its investments from all three firms. It will allocate up to 60% in public equities, up to 30% in fixed income and as much as 40% in private markets investments, according to the filing, which did not disclose what fees clients will be charged.

A representative for Wellington said the three firms are “committed to collaborating on the development of simplified multi-asset investment solutions that seamlessly integrate public and private assets as well as active and index strategies.”