Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.

BlackRock becomes Authentic Brands' largest shareholder with $875 million stake

BlackRock becomes Authentic Brands' largest shareholder with $875 million stake
FILE PHOTO: A sign for BlackRock Inc hangs above their building in New York U.S., July 16, 2018. REUTERS/Lucas Jackson/File Photo -
Lucas Jackson(Reuters)
Euronews logo
Text size Aa Aa

(Reuters) – BlackRock Inc’s <BLK.N> new private equity fund Long Term Private Capital (LTPC) has completed its maiden investment, taking up an $875 million (727 million pounds) stake in Authentic Brands Group LLC, making it the largest investor in the U.S.-based entertainment company, the fund said on Sunday.

“The fund itself put $625 million and we have another $250 million that is coming from related entities and co-investors,” André Bourbonnais, head of BlackRock’s Long Term Private Capital, told Reuters.

In April, BlackRock said it was set to start investing its long-term private capital vehicle, which had $2.75 billion in capital committed from cornerstone investors at the time.

The deal announced on Sunday, which was first reported by the Wall Street Journal, values Authentic Brands Group at more than $4 billion including debt, the Journal said, citing unnamed sources. LTPC sits inside BlackRock’s Alternative Investors segment, which oversees investment in real assets, private equity and private credit.

The rise of BlackRock, the world’s largest asset manager, has been fuelled by the explosive growth in exchange-traded funds and index funds as investors shift to cheaper funds that mimic stock and bond indexes. But as fund fees race to the bottom, BlackRock is looking at newer revenue sources.

(Reporting by Saqib Ahmed in New York and Rishika Chatterjee in Bengaluru; Editing by Lisa Shumaker and Grant McCool)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on for a limited time.