BlackRock Expands Alternative Coverage With Swiss Re Purchase

(July 3, 2012) — The world’s largest asset manager has increased its alternatives offering though the acquisition of a private equity and infrastructure funds business run by a Swiss reinsurer.

BlackRock has entered a definitive agreement to acquire Swiss Re Private Equity Partners, the European private equity and infrastructure fund of funds franchise of Swiss Re, the companies announced this morning.

BlackRock and Swiss Re have also entered into a strategic alternative investment relationship agreement, centred on BlackRock Alternative Investors – this will allow the insurer access to products on the global asset manager’s platform.

“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.

Earlier this year, a survey of large investors in the United States found alternatives were the most sought after asset class, knocking traditional asset classes out of the top five most wanted for the first time, a survey of consultants found.

Private equity, emerging market debt, hedge funds, real estate and commodities were to be the asset classes seeing the most investor searches in 2012, according to a survey of consultants by Casey Quirk and eVestment Alliance.

The BlackRock/Swiss Re deal would expand the asset manager’s footprint in Switzerland and potentially other European markets.

The all-cash deal is set to close in the third quarter of 2013 – details of the transaction were not disclosed.