BlackRock has completed the final close of its third direct co-investment private equity fund – BlackRock Private Opportunities Fund III (POF III) – with over USD630 million in total commitments.
Investors include public and private pension funds, insurers and foundations in North America and Europe.
The fund close comes at a time when investors are increasingly embracing alternative investments, such as private equity. Russell Steenberg, Managing Director and Global Head of BlackRock Private Equity Partners says: “We are pleased with such strong interest from a broad range of institutional clients in multiple geographies.”
POF III is a global direct co-investment fund with an opportunistic investment strategy seeking to select the best available buyout investments measured on a risk/return basis from a diverse group of talented, leading private equity sponsors. The fund seeks to build a portfolio broadly diversified by geography, strategy and industry sector. Given POF III’s opportunistic strategy, the fund seeks to capitalise on tactical themes in the current market environment, including but not limited to: consolidation and roll-up plays, corporate carve-outs, energy and special situations, growth opportunities in Asia and other emerging markets, family-owned and small cap buyout and growth opportunities as well as state-owned enterprises and privatisations.
Steenberg says: “Today’s challenging market environment requires a more nuanced and thoughtful approach. It’s important to invest in businesses where there is a range of possibilities to create and realise value. That’s why we’re looking to back strong management teams in all-weather businesses that can benefit from some sort of corporate change event but require support in transition, integration and operations to realise the full potential.”
