The move introduces some fresh blood in its top management.
According to an internal memo from BlackRock Inc, the world’s largest asset manager, it has reshuffled its top regional management and has placed new new leadership at the head of its lucrative alternatives business, according to a memo on Tuesday.
According to the memo, Mark McCombe, who used to manage people would report directly to Larry Fink, BlackRock’s Chief Executive and Rob Kapito, BlackRock’s President, will now exclusively exclusively focus on leading the Americas region.
David Blumer will place McCombe as head of its Alternative Investors division. Blumer, a former veteran at Credit Suisse Group AG joined BlackRock four years ago and used to head its Europe, Middle East and Africa (EMEA) region.
The EMEA region will now be overseen by Rachel Lord, whose primary focus has been iShares exchange-traded funds (ETFs).
The place vacated by Lord will now be taken up by Stephen Cohen.
These changes in human resource are significant since it infuses fresh blood in the top leadership in the company.
Incidentally, Fink, who co-founded the company in 1988, has yet to publicly name his successor; the names doing the round as potential successors, include McCombe, Kapito, Rob Goldstein and Mark Wiedman.
With $5.7 trillion assets under its management, index-tracked ETFs, once considered an industry backwater, account for the bulk of its revenues.
In another significant step, earlier this year, BlackRock had overhauled its actively managed equities business, cut jobs, and dropped fees as it relied on algorithms to pick stocks.
BlackRock’s alternative investments range from real estate and infrastructure projects, including solar and wind farms to hedge funds.
Although this represents just 2% from its asset bloc it however amounts for a disproportionate 6% of its fees. No wonder this area has become a priority for Fink and attracted cash this year.
The space however has grown increasingly competitive as institutional clients balk at locking up funds and paying high fees for results that can be lackluster.
All HR related changes take come into play with immediat effect.