Blackstone Inc. hired Joseph Cassanelli, a banker who drove major Wall Street deals, as the private equity firm prepares to invest more in banks and insurers.
The former co-head of Lazard Inc.’s US financial institutions group joins Blackstone as a senior managing director at its Tactical Opportunities unit. That arm invests across equity, credit and anywhere in between and oversees about $34 billion of assets.
In Cassanelli, Blackstone is tapping a 20-year-plus Lazard veteran who had a hand in landmark deals, such as Blackstone’s own public listing as well as Apollo Global Management Inc.’s takeover of insurer Athene. Both of these demonstrated how buyout firms can secure capital to expand beyond their private equity roots.
Alternative asset managers such as Blackstone are gaining an edge in the finance talent war. Such buyout firms aren’t regulated like banks and can take more risks. The new hire also underscores Blackstone’s eagerness to step in to provide capital to insurers and banks.
Bet on Volatility
“The broader direction of travel is increased engagement with banks,” Chris James, who heads the Blackstone’s Tac Opps business, said in an interview.
Elevated interest rates, liquidity constraints and a trade war now create more room for money managers to provide capital relief to other financial institutions. Tac Opps raised $5.2 billion for its latest fund.
