BlackRock to create $10bn equity investment fund

According to the Wall Street Journal, US investment management giant BlackRock is looking to raise $10bn in the aim of creating a new business venture that will seek to purchase direct stakes in companies.

The new unit will reportedly be chaired by Mark Wiseman, one of BlackRock’s top executives and a former member of the Canada Pension Plan Investment Board, Reuters claims.

See also:

• Blackstone acquires majority stake in Thomas Reuters Financial & Risk Business

• Top 10 richest US investors

• Goldman Sachs and China Investment create $5bn cooperation fund for US businesses

The move will rival similar existing ventures from the likes of Berkshire Hathaway, Carlyle Group LP and Apollo Global Management LLC in the aim of seeking out and investing into promising startups.

Further, old partners Steve Schwarzman, CEO of Blackstone, and Larry Fink, CEO of BlackRock will now be pitted against each other, with BlackRock having been formed under the umbrella of Blackstone in 1988, later splitting from the company in 1994.

BlackRock currently manages $145bn that is invested in a range of products including equity funds. However, this would be the first time that the company would create its own equity investment arm.

BlackRock topped $6tn in assets for the first time in 2017.