Blackstone Billionaire Tony James’ Family Office Spawns New Firm

Tony James’ family office has spawned a private equity firm backed by the Blackstone Inc. billionaire that’s courting investment firms for other members of the world’s super-rich.

Madison River Capital, made up of the former private equity team at James’ investment firm, is seeking about $400 million from family offices and institutional money managers for its first fund, with almost half the total already raised, according to a person with knowledge of the matter. The fund is set to close this year, said the person, who asked not to be identified as the details are private.

Tony James

Photographer: Jeff Kowalsky/Bloomberg

The ...