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BlackRock To Acquire Swiss Re's Private Equity Business
US-listed asset management giant BlackRock has entered a definitive agreement to acquire Swiss Re Private Equity Partners, the European private equity and infrastructure fund of funds franchise of insurer and reinsurer Swiss Re.
Financial terms of the all-cash acquisition were not disclosed. The deal will create a private equity business with combined client commitments of $15 billion.
Operating from Zurich, Hong Kong, New York and Bratislava, SRPEP had $7.5 billion in total commitments at 31 May, including a significant commitment from Swiss Re as it invested alongside its clients.
Under the acquisition, SRPEP will be integrated with BlackRock’s existing private equity fund of funds group – BlackRock Private Equity Partners.
“The transaction extends BRPEP’s investment capabilities into infrastructure investing, expands its European and Asian footprint, and establishes the unit’s presence in Switzerland where BlackRock has a long-standing presence and history of service through employees in Zurich and Geneva,” BlackRock said.
The enlarged business will invest in primary funds, secondaries and direct co-investment opportunities through core fund of funds, direct co-investment programmes and other offerings.
“In an environment where yields are low and volatility is high, clients around the world are embracing alternatives which offer higher return potential and the ability to mitigate risk,” said Matthew Botein, managing director and head of BlackRock Alternative Investors.
As part of the acquisition, Russell Steenberg, managing director and head of BRPEP will continue to lead the combined unit. Christian Hinze, chief executive of SRPEP, will join BlackRock as deputy head of the combined business.
“There are no changes expected to the investment strategy or style of either business’s existing offerings, each of which will continue to be managed by members of their existing portfolio management teams,” BlackRock said.
The world’s largest asset manasger, BlackRock had total assets under management of $3.684 trillion at the end of May.
