By Svea Herbst-Bayliss

BOSTON (Reuters] – Blue Owl is a leading asset management company that specializes in purchasing stakes in alternative money mangers and direct lending. It has now hired an executive of Blackstone Group (NYSE) to manage its hedge fund and stakes business.

According to executives, Marc Pillemer will join Blue Owl New York as a managing director.

Blackstone was his last stop, as a managing director. He also worked for Goldman Sachs (NYSE) prior to that.

Blue Owl president Michael Rees stated, “Marc has an incredible talent in the industry and it’ll be great to have his on our team.”

Blue Owl is the third largest player in the so-called GP stakes market. All three recently raised billions in new funds, with Blue Owl’s Fund V aiming at $9 billion.

Rees explained that the industry’s exciting growth trends require capital. He added: “These trades are not cash out transactions. This is capital for growth.

Blue Owl owns assets worth $63 billion. 97% of Blue Owl’s management fees are generated from permanent capital vessels.

Blue Owl was founded earlier in the year, when Dyal Capital Partners merged with Owl Rock Capital (NYSE :). Blue Owl chose to become public with Altimar Acquisition Corp. a special purpose vehicle for acquisitions backed by HPS Investment Partners. Blue Owl still uses the Dyal name for its stakes business.

Blue Owl stock has risen by approximately 70% since May when it became a publicly traded corporation.

Dyal bought 53 minority shares in Vista Equity Partners, Silver Lake Equity Partners, and Iconiq Capital since its inception in 2011.

Blackstone saw turnover in this year’s financial year. Scott Soussa who was co-head of the hedge fund/private equity stakes business left for Angelo Gordon while Melvin Hibberd joined Hunter Point Capital.