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Blackstone isn't planning to advertise

July 18, 2013: 11:31 AM ET
Tony James

Tony James

Blackstone president plays down new general solicitation rules.

FORTUNE -- The Blackstone Group isn't planning to advertise its new funds anytime soon, according to firm president Tony James.

Speaking during a media call for the firm's second quarter earnings, James responded to a question from Fortune about the SEC's recent decision to end the decades-old ban on "general solicitation" for Rule 506 offerings -- an umbrella that usually covers hedge, private equity and real estate funds.

"I don't think it makes much of a difference for Blackstone (BX), at least in the short term," James said. "We're really focused on bigger investors and have a limited amount of bandwidth and marketing people... Our systems aren't set up to serve thousands of masters. Our approach to the smaller investors has been to work through other systems -- like Merrill Lynch (BAC) and J.P. Morgan (JPM) -- although over time I guess that could evolve."

RELATED: Why general solicitation isn't evil

James reiterated the point for Park Hill Group, a Blackstone business unit that serves as a placement agent for third-party fund managers. In both cases, however, he did add that the  aforementioned banks and various sub-advisors could be impacted by the new rules.

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About This Author
Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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