Report: Blackstone Eyeing $3 Billion “Rescue” Fund

(Reuters) – Billionaire Steve Schwarzman’s Blackstone Group (BX.N) is trying to roll out a new fund geared toward providing financing for struggling companies, the New York Post said, citing sources.

Schwarzman is hoping to raise as much as $3 billion for a rescue fund that would provide financing to cash-strapped entities in or on the verge of bankruptcy, the paper said, citing sources.

The buyout shop is in the early stages of developing investor interest in the venture, which does not yet have a name.

The vehicle will largely provide debtor-in-possession financing to companies in need of capital to pay workers or help unwind portions of their business in a bankruptcy restructuring, the paper said.

A Blackstone spokeswoman in London was not immediately available for comment.

(Reporting by Ajay Kamalakaran in Bangalore; editing by John Stonestreet)