BlackRock Alternatives, through its Private Equity business, has launched two new European Long-Term Investment Funds (ELTIFs), designed to broaden access for institutional investors and private individuals across Europe to private equity opportunities globally. BlackRock Alternatives has raised nearly EUR1 billion across two existing ELTIF funds, focused on opportunities in Infrastructure and Private Equity more broadly.
The firm writes that these strategic fund launches cater to increased demand from a broader range of investors for access to the benefits of private markets within a robust investor protection framework.
BlackRock Private Equity ELTIF – Fully Funded
The BlackRock Private Equity ELTIF will look to build a diversified portfolio of 25-30 co-investments, spanning a two-year investment period. It offers a fully funded solution from launch, which entails only one payment from investors into the fund. This structure enables increased operational efficiency and helps accelerate deployment allowing for a shorter investment period and limited “cash drag”. BlackRock’s Private Equity team’s 20 years of co-investing experience and strong sourcing capabilities are well-suited to facilitating the accelerated deployment timeline of a fully funded ELTIF. Additionally, the fund has a lower client commitment minimum of EUR30,000.
BlackRock Future Generations ELTIF
The BlackRock Future Generations ELTIF will look to capture opportunities across five investment themes, including: good health and wellbeing, climate, resources, education, and financial inclusion – in alignment with the United Nation’s 17 Sustainable Development Goals (UN SDGs). The fund will be classified as Article 8, in accordance with the EU’s Sustainable Finance Disclosure regulation (SFDR) and will seek to deliver superior long-term financial returns by supporting the growth of innovative companies. The fund will target 25-35 investments over a four-year investment period.
Both Private Equity Funds aim to achieve long-term capital growth on their investments and will provide access for private investors to invest alongside leading institutional private markets investors. Taking a global approach, the funds will invest across Europe, North America, and Asia, and will have the flexibility to invest across private equity disciplines including buyout, growth equity and venture capital.
BlackRock Alternatives recently launched the BlackRock Alternatives Academy, a new educational program exclusively built for advisers and distributor partners in EMEA. In addition, a BlackRock white paper entitled: “ELTIFs: The quiet boom in EU wealth management” was also published giving further details on the vehicle in the context of the recent decision by the European Parliament to formally approve amendments to ELTIF regulation.
West Lockhart, Head of Wealth EMEA, BlackRock Alternatives, says: “As one of the first movers in the ELTIF space, we are delighted to have successfully developed a range of strategies across private equity and private infrastructure for our European client base. Today’s launches affirm our commitment to constantly innovate and bring client-oriented products to market, offering a broader range of European investors the opportunity to benefit from access to the private markets. We expect the ELTIF market to triple over the next several years.”
Lynn Baranski, Global Head of Investments for BlackRock Private Equity Partners (PEP), BlackRock Alternatives, says: “Today’s launches are strategically important for our Alternatives business in Europe, and they build on BlackRock’s 20+ years of investing experience in Private Equity and our differentiated access to deal sourcing. We are delighted to bring these innovative products to market, offering non-institutional investors a strategy to access attractive co-investments in privately held companies alongside leading general partners (GPs) with a broad diversification across multiple sectors and geographies.”