![]() It also made a giant acquisition within the business. Today there are more than 60 such employees. "Quite frankly, beyond the attractive expected returns or the resilience that people are expecting in down markets, alternatives are playing a critical role in creating a much more holistic portfolio construction approach," Edwin Conway, the global head of BlackRock Alternative Investors, said in a discussion with a Bank of America analyst in July that was broadcast remotely.Ĭonway, who joined BlackRock from Blackstone in 2011, was named head of the alternatives business in spring 2019 as part of a wider shake-up to the alternatives business. The structure shifted so it had more than 50 dedicated sales staff reporting to BAI for the first time, beefing up how widely the group could reach clients. The division operates out of 49 global offices, with just over half of those employees in the US. Something needs to change," he said, adding that the firm is focused on addressing those hurdles.īlackRock's unit, BlackRock Alternative Investors (BAI), has grown to more than 1,000 employees from about 550 in 2016. "However, these investors will face the same challenges that institutional investors have historically faced, such as performance dispersion, limited and disparate data, and a lack of tools to take a total portfolio view. Terry Simpson, who oversees wealth strategy for the Americas within the alternatives business and is featured here on our list of key leaders, told Business Insider one of his goals was to make alternative investments "more mainstream" for a retail clientele across wealth firms. Here's how wealth firms like Citi and UBS are transforming their businesses to meet those client demands. Read more: Uber-rich investors hungry for growth have turned their sights on the private market. In August, the US Securities and Exchange Commission also eased restrictions that prevented most people from investing in private markets. The wider alternatives industry has long been dogged by views that there is a relative lack of transparency into the performance of assets like private equity, and illiquid assets can also come with much higher management fees.įirms say they are trying to boost transparency around traditionally opaque alternative investments because more clients are demanding exposure to the asset classes. We are in the top five in terms of asset growth, and we continue to be driving even more accelerated growth in these areas," Fink said on a July call to discuss second-quarter earnings with analysts.īlackRock has offered alternatives for just about as long as the firm has been around, about three decades. "Five years ago, we were not as recognized as being a participant in the illiquid alternative base, and today we are. It's still mammoth, though: By assets under management, the business alone is roughly the size of both KKR and Carlyle. That's just 3% of the assets BlackRock oversees and accounts for about 10% of the base fees the firm generates. The New York firm, which reported some $7.8 trillion in assets under management as of September, oversees some $222 billion in its alternatives business around the world. "A key focus area for us is illiquid alternatives," CEO Larry Fink wrote in a letter to shareholders in March, adding that big-picture shifts like low yields and the "view that alpha is more attainable in private markets" were driving demand. Visit Business Insider's homepage for more stories.īlackRock, the largest asset manager, has expanded its division that offers clients nontraditional assets like private equity and hedge funds in recent years with a new internal structure, newly created positions, and teams of dedicated sales staffers that the alternative-investments business was previously without.The firm shook up BlackRock Alternative Investors last year and appointed Edwin Conway, who joined the firm from Blackstone in 2011, to head up the division.BlackRock's top leaders in the business include the head of wealth strategy for the Americas, global head of renewable power, and global head of event-driven investing.Business Insider broke out the 17 most powerful leaders powering the growth within the asset manager's alternative-investments division, which oversees about $222 billion in assets and has roughly 1,000 employees.The business of offering clients nontraditional assets like private equity, hedge funds, and real estate has become a core part of BlackRock's long-term growth plan.
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