The era of multi-convergence.
We have seen KKR/Schwab, GCS/ICBC/Dexia, Franklin Templeton/K2, Principal/Liongate, and many more examples of traditional and alternative convergence.
This week BlackRock bought private equity real estate firm MGPA to boost its Asia and Europe presence, doubling its real estate assets to $25 billion. MGPA has about $12 billion in assets for institutional investors, in vehicles including funds, co-investments and SMAs. The acquisition adds about 225 people in some 15 offices, especially across Asia-Pac – BlackRock so far did not have a real estate presence in the region. Mark McCombe is happy. He sees expansion opportunities especially in SouthEast Asia and Japan. The focus on alternatives has been notable for BlackRock – in recent years it bought Merrill’s PE investment unit and FOHFs from Quellos and Swiss Re.
The firm’s alternatives group includes:
-Hedge Funds
– Funds of Hedge Funds
– Custom Hedge Fund Solutions
– Private Equity Fund of Funds
– Real Estate
– Special Opportunities
– Multi-Alternatives Solutions
Jack Handler, Global Head of Real Estate for BlackRock, highlighted the new opportunities to create specific solutions for institutional clients after the acquisition. MGPA will tap into BlackRock’s distribution network to target institutional and HNW clients. It mirrors the strategic goals for the GCS/ICBC/Dexia acquisition, albeit in a different investment segment.
More to come, especially in Asia.
I invite you to follow me on twitter @danenskat
(c) Enskat Associates 2013
More details on the global M&A in the asset management industry can be found in EAQ, a quarterly asset management review featuring thought leaders globally.
Warren Enskat Group 
You must be logged in to post a comment.