On a new twist from the recent trend of mutual fund companies acquiring hedge fund and other alternative investment money managers, BlackRock announced Tuesday that it is acquiring the funds-of-funds division of Quellos Group for up to $1.7 billion. The division runs funds-of-funds that invest in mutual funds, hedge funds, private equity, real estate and hybrid offerings.

Once merged with BlackRock’s existing funds, the funds-of-funds division—to be named BlackRock Alternative Advisors and overseen by Quellos CIO Bryan White—will have $25.4 billion in assets under management, making it one of the largest such platforms in the world. Quellos CEO Jeffrey Greenstein will retire but serve as an advisor during the transition period.

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