The Federal Reserve Board gave Bessemer Group Inc., Woodbridge, N.J., conditional permission to set up a New York subsidiary that would serve as the general partner to limited partnerships investing in a range of commodities and exchange-traded and over-the-counter instruments.

The Fed stipulated that a risk management system be developed before the unit, Bessemer Asset Management Inc., may begin operations. The system would include investment and position limits for the partnerships and each investment adviser.

Bessemer, with $468 million in consolidated assets, also had to agree to consolidate the assets and liabilities of the partnerships in its financial statements when calculating regulatory capital.

The partnership may invest in debt and equity securities, distressed debt instruments, loan participations, and foreign exchange contracts, among other instruments, according to the Fed's April 24 order.

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