The move will place it in direct competition with Berkshire Hathaway Inc and Blackstone Group.
As per a source familiar with the matter at hand, BlackRock Inc, the world’s largest asset manager, plans on raising around $10 billion as part of a new business that would take direct stakes in companies.
The development marks a formation of a new strategy at BlackRock, which manages more than $6 trillion.
Significantly, a multi-billion dollar fund could position BlackRock in direct competition with companies including Berkshire Hathaway Inc and private-equity firms such as Blackstone Group LP, from which incidentally, it was originally spun out.
As per the source, BlackRock’s most likely approach would be to take minority stakes in companies and hold them for a relatively long period of time.
Larry Fink, BlackRock’s CEO has pushed the firm’s executives to focus on generating more long-term value for shareholders rather than just meeting short-term profit targets.
This new effort being chaired by Mark Wiseman, a top executive who joined the firm in 2016 after leaving Canada Pension Plan Investment Board.
Wiseman’s credentials lie in the ability to use technology to aide the process of picking winning stocks.