(Reuters) - BlackRock Inc's (N:BLK) new private equity fund Long Term Private Capital (LTPC) has completed its maiden investment, taking up an $875 million stake in Authentic Brands Group LLC, making it the largest investor in the U.S.-based entertainment company, the fund said on Sunday.
"The fund itself put $625 million and we have another $250 million that is coming from related entities and co-investors," André Bourbonnais, head of BlackRock's Long Term Private Capital, told Reuters.
In April, BlackRock said it was set to start investing its long-term private capital vehicle, which had $2.75 billion in capital committed from cornerstone investors at the time.
The deal announced on Sunday, which was first reported by the Wall Street Journal https://www.wsj.com/articles/blackrock-to-take-stake-in-owner-of-sports-illustrated-nine-west-11565536592?mod=searchresults&page=1&pos=5, values Authentic Brands Group at more than $4 billion including debt, the Journal said, citing unnamed sources. 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. But as fund fees race to the bottom, BlackRock is looking at newer revenue sources.