BlackRock Liquidates Public-Private Investment Partnership at a 23.5% Internal Rate of Return to Treasury

  BlackRock Liquidates Public-Private Investment Partnership at a 23.5%
  Internal Rate of Return to Treasury

Business Wire

NEW YORK -- December 05, 2012

BlackRock, Inc. (NYSE:BLK) today announced that it has returned to investors
substantially all of the proceeds, at a profit, from its BlackRock
Public-Private Investment Fund (the “Fund”). These returns represent a net
multiple of 1.74x on funded capital and an internal rate of return of 23.5% on
Treasury’s equity investment since the Fund’s inception in October 2009 as
part of the Legacy Securities Public-Private Investment Program (“PPIP”). The
Fund, managed by BlackRock, was jointly owned by the U.S. Department of the
Treasury (“Treasury”) and private investors. Treasury has received $917.1
million in net equity distributions (consisting of the return of Treasury’s
$528.2 million investment in the Fund and approximately $388.9 million in
profits).

Additionally, the Fund has accrued $9.7 million in warrant proceeds to be
distributed to Treasury and has repaid approximately $1.09 billion of the
drawn amounts under the Treasury funded credit facility plus interest.

“We are proud to have been selected as part of the PPIP and are extremely
grateful for Treasury’s expressed confidence that we could deliver attractive
returns, particularly during a time of such severe stress on the global
financial system,” said Robert S. Kapito, President of BlackRock. “Our ability
to aid in the stability of the mortgage-backed security market and deliver
solid investment returns is evidence that a partnership between the public and
private sectors can be truly rewarding and profitable.”

Mr. Kapito continued: “As with all of our investments, our primary goal is to
maximize the return for all of our investors, including Treasury, through a
carefully constructed risk framework. When considering and integrating the
goals of the program with current conditions of the marketplace we believed
optimization of the Fund’s investment objectives was achieved through timely
liquidation.”

PPIP

On March 23, 2009, Treasury announced the Legacy Securities Public-Private
Investment Program as a key component of President Obama’s Financial Stability
Plan, which outlined a broad framework to bring capital into the financial
system and address the problem of legacy real estate assets. PPIP was designed
to support market functioning and facilitate price discovery in the markets
for legacy commercial mortgage-backed securities ("CMBS") and non-agency
residential mortgage-backed securities ("RMBS"). Using capital allocated from
the Troubled Asset Relief Program alongside capital from private investors,
the PPIP was designed to generate a significant purchasing power to buy legacy
assets from the market. The Fund was one of nine Public-Private Investment
Partnerships in the program. Under the program, the Fund held its initial
closing in October 2009 and ultimately deployed over 75% of the approximately
$2.78 billion in available committed capital, including $695.0 million in
equity capital commitments from Treasury, $695.0 million in capital
commitments from private investors, and $1.39 billion of committed debt
capital from Treasury.

Internal Rate of Return is based on daily cash flows and is calculated net of
fees and expenses, as of December 5, 2012.

About BlackRock

BlackRock is a leader in investment management, risk management and advisory
services for institutional and retail clients worldwide. At September 30,
2012, BlackRock’s AUM was $3.673 trillion. BlackRock offers products that span
the risk spectrum to meet clients’ needs, including active, enhanced and index
strategies across markets and asset classes. Products are offered in a variety
of structures including separate accounts, mutual funds, iShares® (exchange
traded funds), and other pooled investment vehicles. BlackRock also offers
risk management, advisory and enterprise investment system services to a broad
base of institutional investors through BlackRock Solutions^®. Headquartered
in New York City, as of September 30, 2012, the firm has approximately 10,400
employees in 29 countries and a major presence in key global markets,
including North and South America, Europe, Asia, Australia and the Middle East
and Africa. For additional information, please visit the Company's website at
www.blackrock.com.

Contact:

BlackRock, Inc.
Brian Beades, 212-810-5596
brian.beades@blackrock.com
 
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