Larry Fink’s BlackRock is here to stay
ANALYSIS: THE WORLD’S LARGEST ASSET MANAGER WILL BE A MAJOR PLAYER IN LONDON
BLACKROCK’S acquisition of Barclays Global Investors (BGI) will see it become the world’s largest asset manager with $2.89 trillion (£1.75 trillion) under management, more than twice the funds run by number-two group State Street.
The new firm, BlackRock Global Investors, will be one of the City’s new giant firms, with a huge presence in London, and will employ around 9,000 staff across the UK.
Situated in the heart of the Square Mile, on the edge of London Bridge, BlackRock’s London operation is headed by Rich Kushel, a vice-chairman who runs the firm’s international business. BGI is currently based near Tower Bridge; among its leading lights are City grandee Lindsay Tomlinson, now vice-chairman. Blake Grossman, CEO of BGI, will serve as a vice chairman of the combined firm; Bob Diamond, Barclays’ president and BGI’s overall boss, will also join the board.
At present, BGI’s chief executive for Europe and Asia (ex-Japan) David Semaya oversees the Tower Hamlets-based UK business. It is unclear whether the combined London-based operations will relocate to new offices.
BlackRock co-founder and chief executive Larry Fink has earned the reputation as one of the shrewdest bankers in Wall Street. BlackRock last night denied it turned to high-profile dealmaker Amanda Staveley of PCP Capital Partners for assistance in their buyout of BGI.
A source at BlackRock told City PM: “She raised no capital nor did she assist in capital raise for the BGI acquisition.”
A GIANT IS BORN LIKELY GLOBAL ASSET MANAGER RANKINGS AFTER DEAL
Company Assets Managed ($ trillion)
1. BlackRock/ BGI $2.89
2. State Street Global Advisers $1.4
3. Fidelity Investments $1.3
4. Axa $1.1
5. Vanguard $1.1
6. AGI (third-party assets) $1.1
7. Deutsche Bank $0.9
8. BNY Mellon $0.88
9. Capital Group $0.85
10. Goldman Sachs Asset Management $0.77