BlackRock Exits Direct Private-Equity Investments, Beefs Up Alternatives Unit

Exit Sign

BlackRock plans to exit the business of investing directly in private-equity deals as it focuses on its fund-of-funds business.

Bloomberg reports that the move will lead to the departure of Nathan Thorne, George Bitar and Mandy Puri, former Merrill Lynch & Co. private-equity managers hired by BlackRock in 2011, said Brian Beades, a spokesman for the firm.

'We had a very strong direct private-equity team, but given our clients are looking to us for other fund-of-fund solutions, we are going to transition out of the direct PE business', Beades said in an e-mail.

Bloomberg also reports that BlackRock has hired Credit Suisse Group AG’s Andy Stewart to co-head the unit that runs real estate, hedge fund and private equity fund-of-funds investments along with Matthew Botein, according to a memo sent to employees.

Stewart will lead the business management and strategic growth of BlackRock Alternative Investors, the New York-based firm said in today’s memo. Stewart, 38, will report to President Robert Kapito and Chief Operating Officer Charles Hallac.

Botein will take on the additional role of chief investment officer for alternatives, a broad category that includes assets whose returns aren’t correlated with traditional stocks and bonds.

BlackRock’s Thorne to Leave as Firm Exits Direct Buyouts

BlackRock Hires Stewart as Co-Head of Alternatives Unit


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