BlackRock Raises $630M For Third Direct Co-Investment PE Fund

May 3 2016 | 8:21pm ET

BlackRock has raised more than $630 million for its third direct co-investment private equity fund.

Named the BlackRock Private Opportunities Fund III, the fund secured commitments from a diverse cross-section of public and private pension funds, insurers and foundations in North America and Europe, according to the company. 

The new fund is a global direct co-investment fund with an opportunistic investment strategy. It seeks to select the best available buyout investments measured on a risk/return basis from a diverse group of talented, leading private equity sponsors, BlackRock stated, building a portfolio broadly diversified by geography, strategy and industry sector.

Given its opportunistic approach, the new fund will look to capitalize on tactical themes such as consolidation and roll-ups, corporate carve-outs, energy and special situations, growth opportunities in Asia and other emerging markets, small buyout and growth opportunities, as well as state-owned enterprises and privatizations.

“We are pleased with such strong interest from a broad range of institutional clients in multiple geographies,” said Russell Steenberg, global head of BlackRock Private Equity Partners, in a statement. “Today’s challenging market environment requires a more nuanced and thoughtful approach…We’re looking to back strong management teams in all-weather businesses that can benefit from some sort of corporate change event but require support in transition, integration and operations to realize the full potential.”

Founded in 1999, BlackRock is the world’s largest asset management firm, with a total AUM of more than $4.737 trillion. Alternative investments accounted for $114 billion as of March 2016, $22 billion of which is invested across private equity strategies. The company’s Private Equity Partners invests in primary funds, secondaries and direct co-investment opportunities through core funds, satellite funds and customized separate accounts.

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