BlackRock is the first asset manager to launch a global evergreen private markets platform under Europe’s revised ELTIF 2.0 structure—a new milestone in a broader move to expand private markets access for wealthy individuals.
The structure is intended give the New York-based firm’s wealth clients in EMEA and APAC access to a range of alternative products including private equity, private debt, infrastructure and real estate.
The evergreen program will initially launch with two new funds, BlackRock Private Equity Fund and the Multi-Alternative Growth Fund, which will be managed by BlackRock Private Equity Partners and BlackRock Alternative Solutions.
BlackRock has been expanding its private market offering for wealthy individual investors as part of a broader industry trend.
In September, BlackRock teamed with Partners Group to launch a new private market product for retail investors’ access to the private markets.
Regulators have also introduced changes to improve private market access for non-institutional investors. In January, the ELTIF 2.0 framework came into effect. The structure is a revised version of the European long-term investment fund structure introduced by European regulators in 2015.
Their primary goal was to direct additional investment towards European businesses and projects that require long-term funding, including unlisted companies and infrastructure initiatives.
However, the first iteration of the ELTIF structure never gained traction, leading to the introduction of ELTIF 2.0.
The launch of the new platform also comes days after BlackRock announced it was acquiring credit manager HPS Investment Partners for $12 billion in an all-stock transaction, marking yet another GP consolidation this year.
The acquisition created a combined private credit business with $220 billion in client assets, which the HPS team will lead.
Featured image by Emanuele Cremaschi/Getty Images
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