Thursday, 24 July 2014
Last updated 3 hours ago
Jan 22 2009 | 12:22am ET
BlackRock’s hedge fund and private equity co-investments took a big chunk out of its profits last year, the money manager said yesterday.
The firm wrote down $293 million on the value of hedge funds and private equity vehicles it invests in alongside its customer. All told, BlackRock’s net income plummeted 84% to just $53 million, with declines in the firm’s own alternative investments business also contributing to the decline.
Investors redeemed some $2.9 billion from BlackRock alternatives funds in the fourth quarter, pushing the firm’s performance fee income down 84% on the quarter to $23.7 million. BlackRock said that it was able to meet all withdrawal requests.
While the firm’s overall assets under management fell by just 3.6% last year, that had little to do with its alternatives business. The firm’s more conservative funds brought in $129.1 billion in new money, including $101 billion in toxic credit assets that BlackRock is managing on behalf of the U.S. government and four banks.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…