BlackRock Positioning for Potential American Infrastructure Boom
BlackRock Inc. has struggled in growing its alternatives business quickly, losing out to niche and well-funded infrastructure managers in expanding assets under management. According to regulatory filings, BlackRock experienced an outflow of US$ 364 million in the fourth quarter of 2016 from its alternatives business. As of December 31, 2016, alternatives for BlackRock comprised 2.27% of its total assets under management, some US$ 116.938 billion in assets. To compensate for a deficiency in fast organic growth, BlackRock is going out to acquire potential alternative platforms. Besides other commingled funds and separate accounts in infrastructure, the world’s largest asset manager oversees a number of renewable power funds and has a 10-year Latin American infrastructure vehicle. As of 2016, BlackRock has invested in over 70 wind and solar projects. And in 2016, BlackRock hired Patrick Christopher Eilers who headed up Madison Dearborn’s energy, power and chemicals investment practice to be the firm’s managing director in the infrastructure investment group. Eilers was also a former American football safety in the National Football League for the Minnesota Vikings, Washington Redskins and Chicago Bears.
BlackRock has agreed to purchase two energy infrastructure funds and the 37-person team that runs them from First Reserve Corporation, a private equity firm. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
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