BlackRock raises $630 mln for fund targeting buyout investments

BlackRock raised over $630 million for its third direct co-investment private equity fund, BlackRock Private Opportunities Fund III, L.P. Investors included public and private pension funds, insurers, and foundations in North America and Europe.

Press Release

BlackRock has completed the final close of its third direct co-investment private equity fund — BlackRock Private Opportunities Fund III, L.P. (POF III). The fund secured over $630 million in total commitments from a diverse cross-section of public and private pension funds, insurers and foundations in North America and Europe.

The fund close comes at a time when investors are increasingly embracing alternative investments, such as private equity. Russell Steenberg, Managing Director and Global Head of BlackRock Private Equity Partners commented, “We are pleased with such strong interest from a broad range of institutional clients in multiple geographies.”

The fund

POF III is a global direct co-investment fund with an opportunistic investment strategy seeking to select the best available buyout investments measured on a risk/return basis from a diverse group of talented, leading private equity sponsors. The fund seeks to build a portfolio broadly diversified by geography, strategy and industry sector. Given POF III’s opportunistic strategy, the fund seeks to capitalize on tactical themes in the current market environment, including but not limited to: consolidation and roll-up plays, corporate carve-outs, energy and special situations, growth opportunities in Asia and other emerging markets, family-owned and small cap buyout and growth opportunities as well as state-owned enterprises and privatizations.

Mr. Steenberg continued: “Today’s challenging market environment requires a more nuanced and thoughtful approach. It’s important to invest in businesses where there is a range of possibilities to create and realize value. 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.”

BlackRock is one of the world’s largest diversified alternative investment managers, managing $114 billion USD in alternative investments, with over $22 billion in investor commitments across private equity strategies (as at March 2016). Founded in 1999, BlackRock’s Private Equity Partners (PEP) group invests in primary funds, secondaries and direct co-investment opportunities through core funds, satellite funds and customized separate accounts.

About BlackRock

BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At March 31, 2016, BlackRock’s AUM was $4.737 trillion. BlackRock helps clients around the world meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. As of March 31, 2016, the firm had approximately 13,000 employees in more than 30 countries and a major presence in global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company’s website at | Twitter: @BlackRock_News