BlackRock raises $630m for third buyout fund, to invest in Asian growth markets

A woman walks next to a BlackRock sign pictured in the Manhattan borough of New York, October 11, 2015. REUTERS/Eduardo Munoz

BlackRock Inc., the world’s largest asset-management firm, has raised more than $630 million for its third direct co-investment buyout fund which will also invest in emerging Asian markets.

Investors include public and private pension funds, insurance companies and foundations in North America and Europe, the company said in a statement.

Investors are increasingly backing alternative investments, and that helped the firm’s private equity unit hit final close on its target.

BlackRock is one of the world’s largest alternative investment managers, with $114 billion under management. Since 1999, its private equity business — Private Equity Partners (PEP) group — has invested in funds, secondaries and made direct co-investments around the world.

The new fund — BlackRock Private Opportunities Fund III — will focus on buyouts across multiple geographies and industry sectors. It will invest in several areas, including energy and special situations, consolidation and corporate carve-outs, state-owned enterprises and privatizations, and growth opportunities in Asia and other emerging markets.

“Today’s challenging market environment requires a more nuanced and thoughtful approach. That’s why we’re looking to back strong management teams in all-weather businesses that can benefit from some sort of corporate change event but require support in transition, integration and operations to realize the full potential,” said Russell Steenberg, Managing Director and Global Head of BlackRock Private Equity Partners.

BlackRock, like many of its peers, has taken steps to reorganize its private equity portfolio. Last November the company began a process to sell stakes in funds raised between 2000 and 2006 worth about $200 million.

Under chief executive officer Laurence D. Fink, PEP’s parent BlackRock has been transformed from a bond shop to a $4.6 trillion global money manager. Much of that growth has been fueled by acquisitions, including the purchase of Barclays Plc’s investment unit in 2009.

In April, the firm announced plans to cut about 400 of its employees — about 3 per cent of its staff — in what may be its largest round of cuts ever, and marks a slowdown after years of rapid growth in the past decade. It also took a $76 million restructuring charge after posting a 20 percent drop in first-quarter profit.

Also read:

PE firm BlackRock to restructure after ‘tough’ first quarter

Investor activism in Asia set to grow after BlackRock campaign

Blackrock planning Asian PE fund of funds pool

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.