The former hedge fund manager is one of several industry figures who has converted his business into a family office, part of a recent trend. Such entities achieve FO status - and avoid some regulatory oversights - by no longer taking in third-party money.

Former hedge fund manager Scott Bommer plans to roll out a “hybrid” hedge fund and private equity fund under Blackstone Group, with close to $2 billion in assets, Reuters said, citing unnamed sources. 

The newswire said that most of the capital raised for the new fund, which will invest in public equities markets and private equity, is from external sources.

Bommer is one of a number of hedge fund figures who has morphed his business – SAB Capital Management (founded 1999) into a family office – taking the step in 2016. (The issue of hedge funds using a family offices structure has become controversial because of the Archegos Capital implosion this year. Figures industry say calls to regulate family offices as a result of the case are misconceived.) 

Before founding SAB, Bommer worked as a portfolio manager at Siegler, Collery & Co, as an associate at McKinsey & Company and as an analyst at Goldman Sachs.

A spokesperson for Blackstone declined to comment, the report added.