Blackstone Multi-Strategy Hedge Fund (BXHF)

Important Disclosure Information

BXHF is offered pursuant to private placement. This website is neither an offer to sell nor a solicitation of an offer to buy any security and none should be inferred.

Complete information on the risks associated with BXHF are set out in BXHF’s registration statement on Form 10 and any such updated factors included in BXHF’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov.

There can be no assurance that any Blackstone fund, investment or acquisition will achieve its objectives or avoid substantial losses.

The BXHF Investment Committee and BXHF Senior Leadership professionals identified above are not solely dedicated to BXHF or any particular Blackstone business and will perform work for other Blackstone business units. There can be no assurance that such professionals will be associated with a fund throughout the life of a fund.

Certain information contained on or available from this website has been obtained from sources outside Blackstone, which in certain cases have not been updated through the date hereof. While such information is believed to be reliable for purposes used herein, no representations are made as to the accuracy or completeness thereof and none of Blackstone, its funds, nor any of their affiliates takes any responsibility for, and has not independently verified, any such information.

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Key Risk Factors

Blackstone Multi-Strategy Hedge Fund (“BXHF”) is an investment program designed to offer eligible individual investors access to Blackstone’s multi-asset investing division (the “Multi-Asset Investing Division” or “BXMA”). BXHF is structured as a perpetual-life strategy, with monthly, fully funded subscriptions and periodic redemptions subject to the quarterly limitation.

BXHF’s investment objective is to generate attractive long-term risk-adjusted returns across market cycles. BXHF aims to balance growth and preservation of capital and seek to produce an attractive return with low volatility, low drawdowns, and low sensitivity to traditional assets such as stocks and bonds. BXHF seeks to meet its investment objective by investing dynamically in liquid and semi-liquid opportunities across four strategies: Equities, Credit, Special Situations and Trading (collectively, the “Investment Strategies”), each of which is expected to have several underlying sub-strategies. BXHF will employ Blackstone’s unconstrained approach to multi-asset investing, which deploys capital across all asset classes in both public and private markets.

Investing in our Units involves a high degree of risk. If we are unable to effectively manage the impact of these risks, we may not meet our investment objective and, therefore, you should purchase our Units only if you can afford a complete loss of your investment. You should carefully review our private placement memorandum and other Fund documents (the “Offering Documents”) for a description of the risks associated with an investment in BXHF. Anything stated herein is qualified in its entirety by the Offering Documents.

Some of the more significant risks include:

• Although the investment professionals of the Sponsor and Blackstone have extensive investment experience generally, including extensive experience operating and investing for Blackstone’s Multi-Asset Investing Division, as of the date of this Memorandum, BXHF has not commenced operations and has no operating history. Therefore, prospective investors will have no or limited track record or history upon which to base their investment decision. The Sponsor cannot provide assurance that it will be able to successfully implement BXHF’s investment strategy, or that Investments made by BXHF will generate expected returns.
• This is a “blind pool” offering and thus you will not have the opportunity to evaluate our future investments before we make them.
• We do not intend to list our Units on any securities exchange, and we do not expect a secondary market in our Units to develop. In addition, there are limits on the ownership and transferability of our Units. For example, we may restrict transfers that would violate the BXHF Partnership Agreements, the 1933 Act, any state securities laws or other applicable laws, cause us to lose our status as a partnership under the Internal Revenue Code of 1986, as amended (the “Code”) or cause us to become required to register under the 1940 Act. As such, we can be described as illiquid in nature.
• In accordance with the Partnership Agreement, we expect to implement a redemption plan to redeem up to 10% of our Units outstanding per quarter (the “Unit Redemption Plan”), however, there is no guarantee that we will be able to make such redemptions. Furthermore, if we do make such redemptions, only a limited number of Units will be eligible for redemption and redemptions will be subject to available liquidity and other significant restrictions. This means that an investment in our Units will be more illiquid than other investment products or portfolios. In addition and subject to limited exceptions, any redemption request of Units that have been outstanding for less than one year will be subject to an early redemption deduction equal to 2% of the value of the applicable NAV of the Units being redeemed (calculated as of the redemption date (as described below)) (the “Early Redemption Deduction”).
• An investment in our Units is not suitable for you if you need ready access to the money you invest.
• None of our Units have voting power. Unitholders are not entitled to nominate or vote in the election of the Fund’s directors. Further, Unitholders are not able to bring matters before meetings of Unitholders or nominate directors at such meeting, nor are they generally able to submit Unitholder proposals under Rule 14a-8 of the Exchange Act. Overall responsibility for the Fund’s oversight rests with the General Partner, subject to certain oversight rights held by the Board of Directors.
• The Partnership Agreement designates courts in the State of Delaware or, to the extent subject matter jurisdiction exists, the United States District Court for the District of Delaware as the exclusive forum for actions or proceedings related to the Partnership Agreement or federal securities laws and the rules and regulations thereunder, which could limit our Unitholders’ ability to obtain a favorable judicial forum.
• The purchase and redemption prices for our Units will be based on our Transactional NAV, calculated in accordance with the Valuation Policy that has been approved by the Board of Directors, and are not based on any public trading market. While there will be independent valuations of certain of our Investments from time to time, the valuation of our Investments is inherently subjective and our Transactional NAV may not accurately reflect the actual price at which our Investments could be liquidated on any given day.
• The acquisition of Investments may be financed in substantial part by borrowing, which increases our exposure to loss. The use of leverage involves a high degree of financial risk and will increase the exposure of the Investments to adverse economic factors.
• BXHF’s investment activities are affected by general economic and market conditions, such as interest rates, availability and spreads of credit, credit defaults, inflation rates, economic uncertainty, changes in tax, currency exchange controls and other applicable laws and regulations, trade barriers, technological developments and national and international political, environmental and socioeconomic circumstances. Identifying, closing and realizing attractive Investments that fall within BXHF’s investment mandate is highly competitive and involves a high degree of uncertainty.
• While BXHF’s portfolio is generally expected to be well-diversified across the Investment Strategies, BXHF’s Investments may be concentrated at any time in a limited number of sectors, geographies or investments, and, as a consequence, may be more substantially affected by the unfavorable performance of even a single Investment as compared to a more diversified portfolio.
• We are dependent on the Sponsor to conduct our operations, as well as the persons and firms the Sponsor retains to provide services on our behalf. The Sponsor will face conflicts of interest as a result of, among other things, the allocation of investment opportunities among us and Other Blackstone Accounts, the allocation of time of its investment professionals and the substantial fees that the Fund will pay to the Sponsor.

The terms “BXHF,” “we,” “us,” “our,” and the “Fund,” refer to Blackstone Multi-Strategy Hedge Fund L.P. (“BXHF US”) and its consolidated subsidiaries, and may include the BXHF Aggregator (CYM) L.P. (the “Aggregator”) and any Parallel Funds, as the context requires

This website is neither an offer to sell nor a solicitation of an offer to buy securities. An offering is made only by the Offering Documents, which must be made available to you in connection with this offering. Prior to making an investment, investors should read the Offering Documents in their entirety, including the “Risk Factors, Potential Conflicts of Interests and Other Considerations” section therein, which contain the risks and uncertainties that we believe are material to our business, operating results, and financial condition.

Neither the Securities and Exchange Commission (the “SEC”), nor any state securities regulator has recommended, approved or disapproved of these securities or confirmed the accuracy or determined the adequacy of the Offering Documents.

Any representation to the contrary is unlawful. This website must be read in conjunction with BXHF’s Offering Documents in order to fully understand all the implications and risks of an investment in BXHF. Please consult a financial professional for class availability and appropriateness.

Other Risk Factors

A detailed summary of the risks to which a Fund is subject to is available in the Fund Offering Memorandum.

In considering any investment performance information contained on this website, prospective investors should bear in mind that past or estimated performance does not predict future returns and there can be no assurance that a Fund will achieve comparable results, implement its investment strategy, achieve its objectives or avoid substantial losses or that any expected returns will be met.

Exchange Currency Risk. Unless otherwise stated, performance is shown in the Fund’s reference currency. Shareholders/unitholders holding shares/units with a reporting currency other than the reference currency (if any) are exposed to fluctuations of the reference currency foreign exchange rate and/or hedging costs (as applicable). This may lead to variations on the amount to be distributed, and all subscription payments and distributions, as well as returns, will be calculated and reported in the reporting currency of the class. Currency fluctuations and expenses related to hedging transactions may negatively impact the returns of the fund as a whole. Each class of shares/units may differ in overall performance, and certain fees (including, but not limited to, the Management Fee, Performance Participation Allocation and AIFM and Administration Fee) will be calculated in the reference currency. The Fund will incur expenses in multiple currencies, meaning that payments may increase or decrease as a result of currency exchange fluctuations.

Lack of Liquidity. The Fund does not intend to list its shares/units on any securities exchange, and it does not expect a secondary market in its shares/units to develop. Therefore, redemption of shares/units will likely be the only way for investors to dispose of their shares/units. An investment in the fund is not suitable for prospective investors who need ready access to the money they invest.

The fund has implemented a periodic redemption program, however, there is no guarantee it will be able to make such redemptions, and if it does, only a limited number of shares/units will be eligible, with redemptions subject to available liquidity and other significant restrictions set forth in the Offering Documents.

The vast majority of the fund’s assets are expected to consist of investments that cannot generally be readily liquidated without impacting the fund’s ability to realize full value upon their disposition. Therefore, the fund may not always have a sufficient amount of cash to immediately satisfy redemption requests.

This means that the fund is more illiquid than other investment products or portfolios and investors’ ability to have their shares/units redeemed by the fund may be limited and at times investors may not be able to liquidate their investment.

Leverage. The acquisition of the Fund’s investments may be financed in substantial part by borrowing, which increases the Fund’s exposure to loss. The use of leverage involves a high degree of financial risk and will increase the exposure of the investments to adverse economic factors such as rising interest rates, downturns in the economy or deteriorations in the condition of the investments. Leverage may also subject the Fund and its investments to restrictive covenants that may limit financial and operating flexibility.

Limited Operating History. The fund has recently commenced operations and has limited operating history. Although Blackstone has made prior investments through funds and separately managed accounts with similar investment objectives, the fund will invest under different geographic, market, regulatory and economic conditions, and the size and type of its investments may differ. Any prior investment results are provided for illustrative purposes only and are not indicative of future performance. There can be no assurance that the fund will successfully implement its investment strategy, achieve its objectives, be profitable or avoid substantial losses.

Risk of Capital Loss and No Assurance of Investment Return. The Fund offers no capital guarantee. This investment involves a significant risk of capital loss and should only be made if an investor can afford the loss of its entire investment. There can be no assurance that the Fund will implement its investment strategy, achieve its objectives or avoid substantial losses or that any expected returns will be met. This product does not include any protection from future market performance so you could lose some or all of your investment. If we are not able to pay you what is owed, you could lose some or all of your investment. A Fund will incur costs which will impact on the investment return throughout the life of such Fund. The Fund’s fees and expenses may offset or exceed its profits. In considering any investment performance information contained in this document, recipients should bear in mind that past performance does not predict future returns.

Investment and Trading Risk. BXHF is permitted to invest in a wide variety of securities, assets and instruments and to utilize a wide variety of investment strategies, which are expected to change over time. Accordingly, future investments and investment strategies may present new and/or additional risks. Please refer to the Funds’ Offering Memorandum for a detailed summary of the Investment and Trading Risks to which the Fund is subject to.

Valuations. The purchase and redemption price for the fund’s shares/units is based on the Fund’s net asset value (“NAV”) and is not on any public trading market. While there will be independent valuations of the fund’s direct investments from time to time, the valuation of investments is inherently subjective, and the fund’s NAV may not accurately reflect the actual price at which the Fund’s investments could be liquidated on any given day.

Additional Important Disclosure Information

Blackstone Securities Partners L.P. (“BSP”) is a broker-dealer whose purpose is to distribute Blackstone managed or affiliated products. BSP provides services to its Blackstone affiliates, not to investors in its funds, strategies or other products. BSP does not make any recommendation regarding, and will not monitor, any investment. As such, when BSP presents an investment strategy or product to an investor, BSP does not collect the information necessary to determine —and BSP does not engage in a determination regarding — whether an investment in the strategy or product is in the best interests of, or is suitable for, the investor. You should exercise your own judgment and/or consult with a professional advisor to determine whether it is advisable for you to invest in any Blackstone strategy or product. Please note that BSP may not provide the kinds of financial services that you might expect from another financial intermediary, such as overseeing any brokerage or similar account. For financial advice relating to an investment in any Blackstone strategy or product, contact your own professional advisor.

Allocations. There can be no assurance that a Fund will achieve its objectives or avoid substantial losses. Allocation strategies and targets depend on a variety of factors, including prevailing market conditions and investment availability. There is no guarantee that such strategies and targets will be achieved and any particular investment may not meet the target criteria.

Blackstone Proprietary Data. Certain information and data provided herein is based on Blackstone proprietary knowledge and data. Portfolio companies may provide proprietary market data to Blackstone, including about local market supply and demand conditions, current market rents and operating expenses, capital expenditures, and valuations for multiple assets. Such proprietary market data is used by Blackstone to evaluate market trends as well as to underwrite potential and existing investments. While Blackstone currently believes that such information is reliable for purposes used herein, it is subject to change, and reflects Blackstone’s opinion as to whether the amount, nature and quality of the data is sufficient for the applicable conclusion, and no representations are made as to the accuracy or completeness thereof.

Conflicts of Interest. There may be occasions when a Fund’s general partner and/or investment adviser, and their affiliates will encounter potential conflicts of interest in connection with such Fund’s activities including, without limitation, the allocation of investment opportunities, relationships with Blackstone’s and its affiliates’ investment banking and advisory clients, and the diverse interests of such Fund’s limited partner group.

Diversification; Potential Lack Thereof. Diversification is not a guarantee of either a return or protection against loss in declining markets. The number of investments which a Fund makes may be limited, which would cause the Fund’s investments to be more susceptible to fluctuations in value resulting from adverse economic or business conditions with respect thereto. There is no assurance that any of the Fund’s investments will perform well or even return capital; if certain investments perform unfavorably, for the Fund to achieve above-average returns, one or a few of its investments must perform very well. There is no assurance that this will be the case. In addition, certain geographic regions and/or industries in which the Fund is heavily invested may be more adversely affected from economic pressures when compared to other geographic regions and/or industries.

ERISA Fiduciary Disclosure. The foregoing information has not been provided in a fiduciary capacity under ERISA, and it is not intended to be, and should not be considered as, impartial investment advice.

Feeder Fund Structures. Blackstone and/or a third-party manager may form a feeder fund vehicle (a “Feeder Fund”) that will invest all or substantially all of its assets in a master fund that is managed by Blackstone (the “Underlying Blackstone Fund”). A feeder fund structure is typically put in place for legal and commercial purposes. In general, investors will hold their interests at the level of the Feeder Fund and fund costs and expenses of the overall master-feeder structure will ultimately be borne by investors on a pro-rated basis as applicable. Investors in the Feeder Fund are subject to additional costs and risks in addition to those costs and risks borne by investors who invest directly into the Underlying Blackstone Fund. Specifically, in addition to bearing a share of the costs of the Feeder Fund’s investment in the Underlying Blackstone Fund (including the Underlying Blackstone Fund’s expenses, fees, and performance allocations payable to Blackstone), investors in the Feeder Fund will also bear additional costs, fees and expenses that are charged at the Feeder Fund level. For example, a third-party manager is expected to charge investors in the Feeder Fund their pro-rata portion of organizational expenses, management fees, and other fees and expenses. As a result, the performance of an investment in the Feeder Fund may be lower, possibly materially, than an investment made directly in the Underlying Blackstone Fund. In addition, a variety of other factors may contribute to differences between the performance of the Feeder Fund and the Underlying Blackstone Fund, including, but not limited to, the size of the Feeder Fund’s cash reserves and the differences in timing of the cash flows. The manager of the Feeder Fund also has discretion to manage expenses and cash reserves, which may cause an adverse difference in performance between the Feeder Fund and the Underlying Blackstone Fund. If performance is shown herein, such performance reflects that of investors who invest directly in an Underlying Blackstone Fund and is net of the respective Underlying Blackstone Fund’s management fee, carried interest and other fees and expenses. In instances where inception-to-date performance is presented, the Feeder Fund may have different inception-to-date performance than the Underlying Blackstone Fund because the Feeder Fund may invest after the inception of the Underlying Blackstone Fund.

Highly Competitive Market for Investment Opportunities. The activity of identifying, completing and realizing attractive investments is highly competitive, and involves a high degree of uncertainty. There can be no assurance that a Fund will be able to locate, consummate and exit investments that satisfy its objectives or realize upon their values or that a Fund will be able to fully invest its committed capital. There is no guarantee that investment opportunities will be allocated to a Fund and/or that the activities of Blackstone’s other funds will not adversely affect the interests of such Fund.

MiFID Terms of Business. For investors in the European Economic Area please refer to https://www.blackstone.com/european-overview/ to find the MiFID Terms of Business which may be applicable to you.

Material, Non-Public Information. In connection with other activities of Blackstone, certain Blackstone personnel may acquire confidential or material non-public information or be restricted from initiating transactions in certain securities, including on a Fund’s behalf. As such, a Fund may not be able to initiate a transaction or sell an investment. In addition, policies and procedures maintained by Blackstone to deter the inappropriate sharing of material non-public information may limit the ability of Blackstone personnel to share information with personnel in Blackstone’s other business groups, which may ultimately reduce the positive synergies expected to be realized by a Fund as part of the broader Blackstone investment platform.

Opinions. Opinions expressed reflect the current opinions of Blackstone as of the date appearing on this website only and are based on Blackstone’s opinions of the current market environment, which are subject to change. Certain information contained on this website discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice.

Reliance on Key Management Personnel. The success of a Fund will depend, in large part, upon the skill and expertise of certain Blackstone professionals. In the event of the death, disability or departure of any key Blackstone professionals, the business and the performance of a Fund may be adversely affected.

Tax. Investments mentioned herein may not be suitable for any or all recipients of this document, and potential investors are advised not to make any investment decision unless they have taken independent advice from an appropriately authorized advisor. An investment in the Fund may involve complex tax structures, which may result in delays in the distribution of important tax information and the requirement that investors obtain an extension on their income tax returns.

Notwithstanding anything in this document to the contrary, to comply with US Treasury Regulations Section 1.6011-4(b)(3) (i), each investor or prospective investor in the Fund (and any employee, representative or other agent of such investor or prospective investor) may disclose to any and all persons, without limitation of any kind, the US federal, state or local income tax treatment and tax structure of the Fund or any transactions contemplated by this document, it being understood and agreed, for this purpose, (i) the name of, or any other identifying information regarding (A) the Fund or any existing or future investor (or any affiliate thereof) in the Fund, or (B) any investment or transaction entered into by the Fund, (ii) any performance information relating to the Fund or its investments, and (iii) any performance or other information relating to previous funds or investments sponsored by Blackstone, do not constitute such tax treatment or tax structure information.

Third-Party Information. Certain information contained in the on this website has been obtained from sources outside Blackstone, which in certain cases have not been updated through the date hereof. While such information is believed to be reliable for purposes used herein, no representations are made as to the accuracy or completeness thereof and none of Blackstone, its funds, nor any of their affiliates takes any responsibility for, and has not independently verified, any such information.

Trends. There can be no assurances that any of the trends described herein will continue or will not reverse. Past events and trends do not imply, predict or guarantee, and are not necessarily indicative of, future events or results.

Forward-Looking Statements

Certain information contained on or available from this website constitutes “forward-looking statements,” within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward-looking terminology, such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “identified,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”, “confident,” “conviction” or the negative versions of these words or other comparable words thereof. These may include BXHF’s financial estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, statements with respect to investments, statements regarding future performance, and statements regarding potential or identified but not yet completed investments. Such forward-looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. BXHF believes these factors also include, but are not limited to, those described under the section entitled “Risk Factors” in its registration statement on Form 10 and any such updated factors included in its periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included on this website, in BXHF’s filings or in BXHF’s offering materials. Except as otherwise required by federal securities laws, BXHF undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.