NEW YORK & ZURICH--(BUSINESS WIRE)--
BlackRock, Inc. (NYSE: BLK) today announced that it has entered into a
definitive agreement whereby it will acquire Swiss Re Private Equity
Partners AG (“SRPEP”), the European private equity and infrastructure
fund of funds franchise of Swiss Re. BlackRock and Swiss Re have also
entered into a strategic alternative investment relationship agreement,
centered on BlackRock Alternative Investors (“BAI”), which reinforces
Swiss Re’s current investments in SRPEP products and establishes other
future Swiss Re commitments to the BAI platform.
Operating from Zurich, Hong Kong, New York and Bratislava, SRPEP had
$7.5 billion in total commitments at May 31, 2012, including a
significant commitment from Swiss Re as it invested alongside its
clients. SRPEP will be integrated with BlackRock’s existing private
equity fund of funds group – BlackRock Private Equity Partners
(“BRPEP”). The transaction extends BRPEP’s investment capabilities into
infrastructure investing, expands its European and Asian footprint, and
establishes the unit’s presence in Switzerland where BlackRock has a
long-standing presence and history of service through employees in
Zurich and Geneva.
With approximately $15 billion in client commitments, the unified
platform brings together a group of exceptionally talented professionals
and a strong line-up of complementary products. The team will invest in
primary funds, secondaries and direct co-investment opportunities
through core fund of funds, direct co-investment programs and other
offerings.
“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. “We are
thrilled to be welcoming Swiss Re Private Equity Partners to BlackRock
and believe its well-respected capabilities enhance our ability to
deliver innovative solutions to our global client base. BlackRock values
its long-standing business relationship with Swiss Re and we are very
pleased to be deepening that commitment through this transaction and
strategic partnership.”
David Blumer, Group Chief Investment Officer for Swiss Re, remarked:
“BlackRock's extensive experience in managing private equity funds is
extremely complementary to the SRPEP platform. Swiss Re is pleased to be
strengthening its relationship with BlackRock as we see significant
strategic benefits for our clients and great opportunities for our
employees.”
Russell Steenberg, Managing Director and Head of BRPEP will continue to
lead the combined unit. Christian Hinze, Chief Executive Officer of
SRPEP, will join BlackRock as Deputy Head of the combined business.
There are no changes expected to the investment strategy or style of
either business’s existing offerings, each of which will continue to be
managed by members of their existing portfolio management teams.
“Christian and his team have built a great business,” said Mr.
Steenberg. “The new team offers complementary investment management
skills – including an especially strong capability in managing European
funds. As we unify our collective offerings, our guiding principle will
be to continue to deliver best-in-class service and products that meet
our clients’ investment objectives.”
“Swiss Re is proud of the trust and confidence its clients have
demonstrated as the SRPEP business continued to expand,” stated Mr.
Hinze. “The SRPEP team is enthusiastic about joining the BlackRock
organization and looks forward to continuing its interaction with Swiss
Re.”
Martin Gut, Managing Director and BlackRock’s Country Head of
Switzerland, added: “This transaction marks BlackRock’s continued
investment in its Swiss franchise. Our larger presence in the country
will facilitate our ability to better serve our local clients.”
Following the satisfaction of customary closing conditions, the
transaction is expected to be completed by the end of the third quarter
of 2012. Terms of the all-cash transaction, which will be
neutral-to-modestly accretive to BlackRock’s 2012 earnings, were not
disclosed.
About BlackRock
BlackRock is a leader in investment management, risk management and
advisory services for institutional and retail clients worldwide. At
March 31, 2012, BlackRock’s AUM was $3.684 trillion. BlackRock offers
products that span the risk spectrum to meet clients’ needs, including
active, enhanced and index strategies across markets and asset classes.
Products are offered in a variety of structures including separate
accounts, mutual funds, iShares® (exchange-traded funds) and
other pooled investment vehicles. BlackRock also offers risk management,
advisory and enterprise investment system services to a broad base of
institutional investors through BlackRock Solutions®.
Headquartered in New York City, as of March 31, 2012, the Firm has
approximately 9,900 employees in 27 countries and a major presence in
key global markets, including North and South America, Europe, Asia,
Australia and the Middle East and Africa. For additional information,
please visit the Company's website at www.blackrock.com.
About BlackRock Alternative Investors
BlackRock Alternative Investors (“BAI”) is a preeminent provider of
alternative investment solutions globally. As of March 31, 2012,
BlackRock’s alternative investment assets under management totaled
$110.4 billion, spanning single strategy hedge funds, hedge fund of
funds, real estate, private equity mandates, infrastructure, currency
and commodity products. With more than 15 years of experience, BAI
manages alternatives investments on behalf of institutional, high net
worth and individual investors worldwide.
About Swiss Re
The Swiss Re Group is a leading wholesale provider of reinsurance,
insurance and other insurance-based forms of risk transfer. Dealing
direct and working through brokers, its global client base consists of
insurance companies, mid-to-large-sized corporations and public sector
clients. From standard products to tailor-made coverage across all lines
of business, Swiss Re deploys its capital strength, expertise and
innovation power to enable the risk taking upon which enterprise and
progress in society depend. Founded in Zurich, Switzerland, in 1863,
Swiss Re serves clients through a network of over 60 offices globally
and is rated "AA-" by Standard & Poor's, "A1" by Moody's and "A+" by
A.M. Best. Registered shares in the Swiss Re Group holding company,
Swiss Re Ltd, are listed on the SIX Swiss Exchange and trade under the
symbol SREN. For more information about Swiss Re Group, please visit: www.swissre.com
or follow us on Twitter @SwissRe
Forward-looking Statements
This press release, and other statements that BlackRock may make, may
contain forward-looking statements within the meaning of the Private
Securities Litigation Reform Act, with respect to BlackRock’s future
financial or business performance, strategies or expectations.
Forward-looking statements are typically identified by words or phrases
such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,”
“comfortable,” “expect,” “anticipate,” “current,” “intention,”
“estimate,” “position,” “assume,” “outlook,” “continue,” “remain,”
“maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or
future or conditional verbs such as “will,” “would,” “should,” “could,”
“may” or similar expressions.
BlackRock cautions that forward-looking statements are subject to
numerous assumptions, risks and uncertainties, which change over time.
Forward-looking statements speak only as of the date they are made, and
BlackRock assumes no duty to and does not undertake to update
forward-looking statements. Actual results could differ materially from
those anticipated in forward-looking statements and future results could
differ materially from historical performance.
In addition to risk factors previously disclosed in BlackRock’s
Securities and Exchange Commission (“SEC”) reports and those identified
elsewhere in this report the following factors, among others, could
cause actual results to differ materially from forward-looking
statements or historical performance: (1) the introduction, withdrawal,
success and timing of business initiatives and strategies; (2) changes
and volatility in political, economic or industry conditions, the
interest rate environment, foreign exchange rates or financial and
capital markets, which could result in changes in demand for products or
services or in the value of assets under management; (3) the relative
and absolute investment performance of BlackRock’s investment products;
(4) the impact of increased competition; (5) the impact of future
acquisitions or divestitures; (6) the unfavorable resolution of legal
proceedings; (7) the extent and timing of any share repurchases; (8) the
impact, extent and timing of technological changes and the adequacy of
intellectual property and information security protection; (9) the
impact of legislative and regulatory actions and reforms, including the
Dodd-Frank Wall Street Reform and Consumer Protection Act, and
regulatory, supervisory or enforcement actions of government agencies
relating to BlackRock or The PNC Financial Services Group, Inc.; (10)
terrorist activities, international hostilities and natural disasters,
which may adversely affect the general economy, domestic and local
financial and capital markets, specific industries or BlackRock; (11)
the ability to attract and retain highly talented professionals; (12)
fluctuations in the carrying value of BlackRock’s economic investments;
(13) the impact of changes to tax legislation, including taxation on
products or transactions which could affect the value proposition to
clients and, generally, the tax position of the Company; (14)
BlackRock’s success in maintaining the distribution of its products;
(15) the impact of BlackRock electing to provide support to its products
from time to time; and (16) the impact of problems at other financial
institutions or the failure or negative performance of products at other
financial institutions.
BlackRock's Annual Report on Form 10-K and BlackRock's subsequent
filings with the SEC, accessible on the SEC's website at www.sec.gov
and on BlackRock’s website at www.blackrock.com,
discuss these factors in more detail and identify additional factors
that can affect forward-looking statements. The information contained on
the Company’s website is not a part of this press release.
BlackRock Contacts
Media
Relations Switzerland:
Marc Bubeck, 49-89-42729-5882
marc.bubeck@blackrock.com
or
Media
Relations US:
Brian Beades, 212-810-5596
brian.beades@blackrock.com
or
Investor
Relations US:
Ellen Taylor, 212-810-3815
ellen.taylor@blackrock.com
or
Swiss
Re Contacts
Media Relations Switzerland:
Rolf
Tanner, +41 43 285 4904
rolf_tanner@swissre.com
Source: BlackRock, Inc.