According to two sources familiar with the matter at hand, Blackstone Group is committing $150 million in start-up capital to a hedge fund that is run by a former senior executive at Lone Star Funds.

According to one of the sources, Anand Balakrishna Madduri will be launching ApaH Capital Management with around $200 million in assets, including the capital from Blackstone.

Hong Kong-based ApaH Capital Management will focus on public and private market investments across Asia, including India, Japan, China and Australia.

Madduri did not immediately respond to requests for comments.

Blackstone declined to comment.

Madduri spent five years as a senior managing director at Lone Star Funds for five years and spent seven years at Och-Ziff Capital Management, where he was a managing director.

Blackstone is making the investment with cash from its $1.5 billion Strategic Alliance Fund III which backs newcomers into the hedge fund industry.

Among other such investments, Blackstone has provided seed capital to Palm Lane Capital, Jones Road Capital Management and Tresidor Investment Management from Fund III.

According to sources familiar with the terms, Blackstone’s seeders take a cut ranging from 15% to 25% of the hedge fund’s business.

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