BlackRock’s new private equity fund invested made its maiden investment in Authentic Brands and emerged as its single largest investor.
In a significant development, BlackRock Inc’s new private equity fund – Long Term Private Capital (LTPC) – has completed its first investment in Authentic Brands Group LLC having acquired a stake worth $875 million in the company, which has made it the single largest investor in the U.S.-based entertainment company, said the fund in a statement.
“The fund itself put $625 million and we have another $250 million that is coming from related entities and co-investors,” said André Bourbonnais, BlackRock’s head of Long Term Private Capital.
Earlier this year in April, BlackRock had stated it would start investing its long-term private capital vehicle, which had $2.75 billion in capital committed from cornerstone investors at the time.
This deal, which was announced on Sunday by the Wall Street Journal, values Authentic Brands Group at more than $4 billion including debt. LTPC sits inside BlackRock’s Alternative Investors segment, which oversees investment in real assets, private equity and private credit.
The rise of BlackRock, the world’s largest asset manager, has been fueled by the explosive growth in exchange-traded funds and index funds as investors shift to cheaper funds that mimic stock and bond indexes. With the fund fees slumping in recent times, BlackRock is looking at newer revenue sources.