(March 27, 2013) - BlackRock has shut down its direct private equity team less than two years after launching the unit, firm spokesman Brian Beades has confirmed.
"In private equity, our clients are increasingly asking us for indirect and co-investment strategies that are delivered through our funds of funds business," Beades told aiCIO. "We had a very strong direct private equity team but given our clients are looking to us for other fund of fund solutions, we are going to transition out of the direct private equity business."
Nathan Thorne, managing director for global private equity, will leave the firm, as will unit co-heads Mandy Puri and George Bitar. The three had previously co-founded Merrill Lynch's direct alternatives unit, then disbanded in 2009 following the financial services giant's merger with Bank of America.
Beades noted that the firm's funds-of-funds business doubled in size during the year to $15 billion, thanks largely to its acquisition of Swiss Re Private Equity Partners.
Beyond closing its direct buyout group, BlackRock is further shaking up the structure of its alternatives investing arm. The current head of alternatives Matt Botein will soon share the position with new hire Andy Stewart, who has left Credit Suisse after leading its liquid alternatives group for the last three years. Botein will also become the CIO of Blackrock Alternatives Investors, and lead portfolio manager to its new Alternatives Solutions Group.