Blackstone, the world’s largest hedge fund investor, has committed $250m to Covara Capital, a newly launched opportunistic long-short credit fund founded by former Fir Tree Partners portfolio manager Sachin Gupta, according to a report by Reuters.

The report cites unnamed people familiar with the mater as highlighting that the investment comes from Blackstone’s $1.1bn Strategic Alliance Fund IV, which backs emerging hedge fund managers, alongside additional firm capital.

Covara began trading last week, running a long-short credit strategy across US and European high-yield and investment-grade corporate debt, echoing the mandate Gupta managed at Fir Tree before its closure earlier this year.

Blackstone’s Multi-Asset Investing arm, which oversees $90bn, has been active in seeding new hedge fund talent, having previously backed Astaris Capital, Arrowpoint, Tresidor, and Jones Road Capital.