BlackRock Inc. is seeking to raise more than $10 billion from sovereign-wealth funds, pensions and other big investors for a new vehicle that will allow it to directly invest in companies, The Wall Street Journal reported, citing "people familiar with the matter."
The vehicle, known as BlackRock Long-Term Private Capital, is part of the company's efforts to focus on alternative investments. It will invest between $500 million and $2 billion in companies affected by a number of long-term themes such as global demographics divergence, middle class growth in emerging markets and millennial spending patterns. The vehicle is aiming for low- to mid-teens annual returns, according to the report.
The news outlet reported that the vehicle will likely buy minority stakes in family-owned businesses, companies being spun out of parent companies, or companies where private-equity investors are seeking to exit their investment.
Mark Wiseman has internal oversight of the vehicle, with André Bourbonnais leading the effort. Before joining BlackRock, Bourbonnais has served as chief executive of Canada's Public Sector Pension Investment Board.
BlackRock is targeting a second-quarter fundraising close, the Journal reported.
