The firm is looking to extend its role beyond investing client capital to managing funds for private equity and alternative asset managers, according to Chief Financial Officer Martin Small.

Speaking at the Bank of America financial-services conference, Small outlined BlackRock’s plan to grow within private equity by treating alternative asset managers as clients. The strategy mirrors BlackRock’s existing model, where it manages funds for other asset managers and sells technology and risk-management services to firms such as Franklin Resources.

As part of this initiative, BlackRock is establishing a GP solutions business to serve general partners (GPs) of alternative-asset firms, which oversee investments on behalf of limited partners like pension funds and endowments.

This move follows BlackRock’s $30bn expansion into private credit, financial data, and infrastructure assets in 2023. The firm’s acquisition of private-credit giant HPS Investment Partners, which manages nearly $150bn in assets, is set to close this year. Once finalized, BlackRock plans to launch a dedicated financing unit led by a team from HPS.

The firm aims to offer a comprehensive suite of services, including direct lending, fund financing, and GP-led secondary transactions. “We can be a primary capital provider through our fund-of-funds business,” Small stated.

BlackRock’s push into GP solutions underscores its ambition to solidify its role in the alternative investments space, leveraging its scale and expertise to provide capital solutions for private equity firms globally.

Source: Bloomberg

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