Ex-BlackRock, U.S. Treasury officials raise capital for financial-services investments

  • Botein formerly co-led BlackRock’s alternatives group
  • Sachs has history of government work
  • BlackRock took minority stake in Gallatin Point

BlackRock has seeded a new firm, launched by the former co-head of its alternatives group, that invests in financial services, according to sources and regulatory documents.

Matthew Botein, BlackRock’s former chief investment officer and co-head of its alternatives group, and former Treasury official Lewis Sachs formed Gallatin Point Capital earlier this year.

The firm is in the market, talking to limited partners about raising its debut fund. How much Gallatin Point is targeting is unclear. In July the Greenwich, Connecticut, firm filed a Form D fundraising document that doesn’t list a target or amount raised.

No one from Gallatin Point returned several requests for comment.

BlackRock has a non-control, minority interest in Gallatin Point’s management company, Gallatin Point’s Form ADV said. Further, a client in BlackRock’s alternatives-solutions group made a $400 million non-discretionary commitment to the firm, a person with knowledge of the firm said.

The strategic investor “has the right to provide a significant amount of the aggregate investment amount” of each investment made by Gallatin, the Form ADV said.

In September, Gallatin Point joined a consortium of investors led by Centerbridge Partners to acquire specialty insurance and reinsurance company Sompo Canopius.

Botein joined BlackRock in 2009 and left the asset manager at the end of last year. Prior to BlackRock, Botein worked at Highfields Capital from 2003 to 2009, his LinkedIn profile shows. He worked at Blackstone Group from 2000 to 2003.

Sachs has worked in government and the private sector during his career. He most recently was a co-founder and chairman of Alliance Partners and was CEO since 2015, his biography on Gallatin Point’s website says.

Previously, Sachs worked in the Barack Obama administration as counselor to the secretary and head of the financial crisis response team with the U.S. Treasury. In this capacity, he helped formulate the Obama administration’s strategy to address the global financial crisis in 2008 and 2009.

Sachs also worked in the U.S. Treasury in the Bill Clinton administration. In the private sector, he’s worked at Bear Stearns, Perseus LLC, Cornerstone Asset Management and Mariner Investment Group.

Action Item: Check out Gallatin Point’s Form ADV: http://bit.ly/2iKjwA6

Greenwich, a town in Fairfield County, Connecticut. Photo courtesy Denis Tangney Jr/iStock/Getty Images