Skip to main content

BlackRock Inc.’s new private equity fund Long Term Private Capital (LTPC) has completed its maiden investment, taking up a US$875-million stake in Authentic Brands Group LLC, making it the largest investor in the U.S.-based entertainment and branding company, the fund said on Sunday.

“The fund itself put US$625-million and we have another US$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 US$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, values Authentic Brands Group at more than US$4-billion including debt, the Journal said, citing unnamed sources.

Authentic Brands Group’s holdings range from ownership of Sports Illustrated and Nine West to likeness and merchandising rights for celebrities from Elvis Presley and Marilyn Monroe to Shaquille O’Neal and Greg Norman.

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 fuelled 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.

Report an editorial error

Report a technical issue

Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 20/05/24 6:40pm EDT.

SymbolName% changeLast
BLK-N
Blackrock Inc
-0.87%805.19

Follow related authors and topics

Authors and topics you follow will be added to your personal news feed in Following.

Interact with The Globe