Blackstone multi-strat alternatives fund makes its second direct cat bond investment

Blackstone Alternative Asset Management, the hedge fund solutions unit of Blackstone, has now made a second direct investment into a catastrophe bond through one of its flagship muti-strat alternatives funds.

Back in May 2025 we reported that the Blackstone Alternative Multi-Strategy Fund had made its first direct investment into a catastrophe bond, having previously only allocated to insurance-linked securities (ILS) via external ILS manager operated strategies.

Now, a second direct investment to hold catastrophe bond notes has been made by this fund, but it remains a very small allocation at this time.

Blackstone has been accessing the returns of ILS and direct reinsurance investments for the investors in its multi-strategy funds for a long time, with its allocations to the sector changing over time.

The Blackstone Alternative Multi-Strategy Fund names specialist ILS investment manager Nephila Capital listed as a sub-advisor, although it continues to have not made any allocation to any Nephila strategy at this stage.

This fund does allocate to a flagship strategy managed by ILS specialist Aeolus Capital Management, with allocations made to vintages of the Aeolus Property Catastrophe Keystone fund since at least 2019. That allocation has shrunk slightly over recent years and sat at almost $6.7 million as of March 31st 2026.

In addition, this Blackstone fund previously allocated to a catastrophe bond fund strategy managed by PIMCO and at one time was valued at over $35 million at the end of 2022, but with PIMCO having shuttered its dedicated cat bond fund that investment ended in 2025, we believe.

Which was why it was notable when the Blackstone Alternative Multi-Strategy Fund made its first direct cat bond investment in 2025.

In the first-quarter of 2025 a small investment was made into one of insurer SafePoint’s Nature Coast Re cat bonds.

It was a $250,000 investment into the Nature Coast Re Ltd. (Series 2025-2) cat bond, which matched the CUSIP listed in the Blackstone fund’s portfolio disclosure at the time.

That investment continues to be in the portfolio disclosures of this Blackstone multi-strategy fund as of March 31st.

But now, the fund also holds a similarly small $250,000 investment into the most recently issued SafePoint sponsored catastrophe bond, the Nature Coast Re Ltd. (Series 2026-1) issuance that came to market earlier this year.

Together, these two Nature Coast Re cat bond investments are valued at $507,350 as of March 31st 2026, so show some appreciation in their values for the asset manager’s multi-strat fund.

Blackstone continues to manage over $3.7 billion of assets in this one multi-strat alternatives fund.

The asset manager has numerous other multi-strategy funds that can also allocate to instruments such as cat bonds, having event-linked securities as allowable assets. So, it will be interesting to see if this second direct cat bond investment signals further activity in the sector from Blackstone may be seen in future.