BlackRock’s Long Term Private Capital has raised $2.75 billion. The fund will invest in high-quality companies interested in a long-term strategic source of capital. André Bourbonnais is leading LTPC.
NEW YORK–(BUSINESS WIRE)–Long Term Private Capital, the pioneering new private equity vehicle from BlackRock Inc. (NYSE: BLK), is ready to start investing after securing capital commitments from a set of high-quality cornerstone investors. LTPC is the newest offering from BlackRock Alternative Investors (BAI) and was built in collaboration with institutional clients seeking a new and innovative way to take long-term positions in private companies.
Over the past year, BlackRock has been working with several major institutional clients to create a new fund tailored to their needs. Client reception has been strong with $2.75 billion committed, including $1.25 billion in hand already and an additional $1.5 billion committed to be available as the fund scales with subsequent fundraising (subject to opt-out under certain circumstances). BlackRock has now commenced formal additional fund-raising for the permanent capital vehicle.
BlackRock built the LTPC investment platform from the ground up. Led by André Bourbonnais, the LTPC team is now seeking sizeable investments in high-quality companies interested in a long-term strategic source of capital.
“For institutional investors who want equity exposure, there’s a need for an additional type of investment on the continuum between publicly traded equities and leveraged buyout style private equity – one that is potentially more rewarding than public equities but less risky than highly-leveraged buyouts,” said Mark Wiseman, Chairman of BAI. “What makes LTPC innovative in meeting our clients’ needs is its perpetual structure and active ownership model that is designed to create value, limit re-investment risk and operate with lower volatility compared with existing private equity market constructs.”
“There’s a large population of strong, stable companies with a reciprocal need for a long-term private ownership model. For these companies, neither a public listing nor a leveraged buyout is an attractive option. LTPC is aligned to meet those needs,” Mr. Bourbonnais said.
LTPC is a crucial new component in BAI’s comprehensive alternative investing capabilities that range from real assets and hedge fund solutions to private equity and private credit. It is another example of BlackRock’s ability to understand the market, develop our own capabilities and deliver the products and solutions clients need most.
BlackRock helps investors build better financial futures. As a fiduciary to investors and a leading provider of financial technology, our clients turn to us for the solutions they need when planning for their most important goals. As of December 31, 2018, the firm managed approximately $5.98 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com | Twitter: @blackrock | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock.