Blackstone (BX.US) is close to acquiring a minority stake in the private equity firm AIP.

According to sources familiar with the matter, a subsidiary of Blackstone Inc. is in advanced negotiations to acquire a minority stake in American Industrial Partners (AIP). One source said that the deal has not been finalized yet, but if an agreement is reached, it could be announced in the coming weeks. The terms of the deal are not yet known. American Industrial Partners, based in New York, also known as AIP, is known for making private equity investments in mid-sized industrial companies. Earlier this month, it was reported that AIP completed the acquisition of the grain and protein division of AGCO Corporation, which manages assets of approximately $16 billion. AIP is led by general partners Kim Marvin, John Becker, and Dino Cusumano, as well as Chief Investment Officer Toni Rinnevaara and Chief Operating Officer Justin Fish. The company's website states that it was founded in 1988 and has invested in companies such as Boart Longyear, Molycop, and Austin Powder. Last year, AIP raised $5 billion for its eighth fund - American Industrial Partners Capital Fund VIII. More and more alternative asset management companies are seeking to sell minority stakes to gain liquidity, with founders often using the proceeds to support new strategies or invest in new funds.