BlackRock's been on a roll this year and its push into alternatives is really cool to see in real time. GIP building out its Infra side, Preqin to build out its alternatives data analytics side, and now HPS which from my understanding is well respected in the PC space. What's next? They had that failed partnership with Warburg Pincus only because BlackRock wanted to acquire a majority stake and Warburg didn't want to give up control. But I think BlackRock already is trying to enter into the MM Buyout space with LTCP, and they're expanding into Secondaries with the SLS fund family. My first guess is that I think they're gonna acquire either a MM/UMM PE firm or a large-cap independent secondaries firm like Coller Capital. Assuming the music doesn't stop, which firms currently make a good acquisition target for BlackRock?
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LTPC (their PE arm) is winding down - they can’t fundraise a new fund
secondaries is still TBD - they saw their entire leadership poached by Apollo and not sure if they’ve recovered from that or raised afterwards
think blackrock had realized how difficult it is to organically enter private markets
Advisory is the next logical step. Heard there were talks with Tobin & Co.
Giveadvicepls Capital Partners, ultra-niche A-Level investments
The integrations of GIP and HPS will be telling. I don’t think, based on conversations with acquired employees looking to hop, that they will be able to integrate these alternatives platforms which exactly matches their track record with prior acquisitions (e.g. Tenenbaum, LTPC). They were forced to offer retention bonuses because certain funds have key man provisions and would have locked out deployment.
In short, BLK probably continues to squander investor capital in their I’ll-conceived empire-building. Founders win, rank and file lose. What else is new?
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