Blackstone Group paid investors a $16.2 million “clawback” on one of its real estate funds during the third quarter, Reuters reported. A clawback is paid when a fund fails to meet its targets, and general partners have to refund profits that were taken earlier in a fund’s life. Such obligations are down compared with last year, Reuters reported. As of Sept. 30, Blackstone’s clawback obligations were $392 million, down from $485.3 million as of Dec. 31, 2009.

Morgan Stanley is suing private equity and investment firm Peak Ridge Capital, alleging the firm failed to cover more than $40 million in losses from its commodities hedge fund, Reuters reported. Morgan Stanley contends that it suffered the losses due to bad bets Peak Ridge placed on natural gas, and that the firm did not maintain proper margin requirements. Peak Ridge and the fund in question—Peak Ridge Commodities Volatility Fund Series—are both operated by Boston-based private equity firm Avolte, Reuters reported.

Bankrupt resort and real estate developer Sea Island Co. will sell its assets to a new company formed by investors Oaktree Capital Management, Avenue Capital Group, Anschutz Corp. and Starwood Capital Group. Financial terms of the sale—which is part of Sea Island’s Chapter 11 bankruptcy plan—were not released.