Feb 8, 2018

BlackRock's private equity push

Dan Primack, author of Pro Rata

BlackRock CEO Larry Fink. Photo by Michael Cohen/Getty Images

BlackRock reportedly is seeking to raise upwards of $10 billion to make direct investments, causing breathless speculation that Larry Fink fancies himself the next Warren Buffett.

Bottom line: This one is getting more attention than it deserves.

BlackRock has been making direct investments for years (e.g., Domo, Chewy, etc.), and also has been a consistent limited partner in third-party private equity funds. It also was among those that submitted bids to help manage the CalPERS private equity portfolio, which would likely include co-investment responsibilities. Plus, recent hire Mark Wiseman was an advocate for direct private equity investments at his last job, as CEO of the Canada Pension Plan Investment Board.

Perhaps the hubbub is just that this looks a bit more like what Fink's former partners at The Blackstone Group do, so it makes a good competitive story. Or maybe because it reads a bit like Berkshire Hathaway.

But, even so, $10 billion isn't the kind of scale that would make any potential rivals nervous (at least not yet).

Go deeper

Updated 25 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 8 a.m. ET: 6,294,222 — Total deaths: 376,077 — Total recoveries — 2,711,241Map.
  2. U.S.: Total confirmed cases as of 8 a.m. ET: 1,811,277 — Total deaths: 105,147 — Total recoveries: 458,231 — Total tested: 17,340,682Map.
  3. Public health: Nearly 26,000 coronavirus deaths in nursing homes have been reported to federal health officials —Coronavirus looms over George Floyd protests across the country.
  4. Federal government: Trump lashes out at governors, calls for National Guard to "dominate" streets.
  5. World: Former FDA commissioner says "this is not the time" to cut ties with WHO.
  6. 🎧 Podcast: The virus didn't go away.

More than 1 in 6 black workers lost jobs between February and April

Adapted from EPI analysis of Bureau of Labor Statistics data; Chart: Andrew Witherspoon/Axios

As is often the case, the staggering job losses in the coronavirus-driven recession have been worse for black workers.

By the numbers: According to a report from the Economic Policy Institute, titled "Racism and economic inequality have predisposed black workers to be most hurt by coronavirus pandemic," more than 1 in 6 black workers lost their jobs between February and April.

Coronavirus could lower GDP by $15.7 trillion

Reproduced from Congressional Budget Office; Chart: Axios Visuals

The CBO released projections on Monday for U.S. nominal GDP to be lower by $15.7 trillion over the next decade than its estimate in January as a result of the coronavirus pandemic.

What they're saying: It predicts that when adjusted for inflation GDP will be $7.9 trillion lower over the next decade and down by $790 billion in the second quarter of this year — a 37.7% quarterly contraction.