The Wall Street Journal: BlackRock Seeks To Raise $10 Billion To Make Direct Investments In Companies

BlackRock Inc. is looking to raise more than $10 billion that it would use to buy and hold stakes in companies, replicating the approach of Warren Buffett’s Berkshire Hathaway Inc. BRK.B, -0.43%  

It is the first-ever attempt by the world’s largest asset manager to make such direct investments, according to people familiar with the matter. The move establishes BlackRock as a potential competitor to Wall Street private-equity giants like Carlyle Group LP CG, -1.03%   and Apollo Global Management LLC APO, +0.48%  .

For BlackRock Chief Executive Laurence Fink, it also sets up a rivalry with his old firm, Blackstone Group LP BX, +0.87%  . Fink co-founded BlackRock as a division of Blackstone in 1988 but split from the private-equity giant in 1994.

BlackRock BLK, -0.55%   has since emerged as one of the biggest beneficiaries of an investor shift to cheaper funds that mimic stock and bond indexes, topping $6 trillion in assets for the first time in 2017. Traditional asset managers like BlackRock and private-equity firms like Blackstone are increasingly battling for cash from the same clients as fees for certain products drop and competition for new pools of capital intensifies.

An expanded version of this report appears on WSJ.com.

Also popular on WSJ.com:

Can you still date a co-worker? Well, it’s complicated.

The mistakes you make in a meeting’s first milliseconds.

RECENT NEWS

Gyrostat May Market Outlook: When The Cost Of Protection Falls - Signals For Portfolio Positioning

This monthly Gyrostat Risk-Managed Market Outlook does not attempt to forecast market direction. It... Read more

The Risk Most Portfolios Do Not Explicitly Manage

Most portfolios are constructed on a simple and widely accepted assumption: that equity risk will be r... Read more

Gyrostat April Outlook: The Changing Cost Of Protection

Signals For Portfolio Construction This monthly Gyrostat Risk-Managed Market Outlook does not attemp... Read more

What Advisers Misunderstand About Protection

Protection is rarely rejected outright. More often, it is misunderstood. Most advisers recognise th... Read more

Gyrostat Market Outlook: Looking Beyond The 30-day Volatility Headlines

This outlook examines how financial markets are pricing risk rather than attempting to forecast market... Read more

Gyrostat Capital Management: The Hidden Assumption In Most Portfolios - Stability

Markets do not usually fail portfolios. Assumptions do. Most portfolios are built with car... Read more