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BlackRock Said to Seek $3 Billion for New Credit Hedge Fund

BlackRock CEO Lawrence Fink
The New York-based firm, led by Chief Executive Officer Laurence Fink, had about $4.1 trillion of assets under management at the end of September, according to an earnings statement on Oct. 16. Photographer: Peter Foley/Bloomberg

Dec. 19 (Bloomberg) -- BlackRock Inc., the world’s biggest money manager, is raising as much as $3 billion for a hedge fund to invest in credit globally, according to two people with knowledge of the pool.

The firm began marketing BlackRock Credit Alpha Fund in October, with an initial target of $500 million and the potential to increase it, said one of the people, who asked not to be identified because the process isn’t completed. The long-short fund seeks to capture valuation anomalies and mispricings, the person said.

Tara McDonnell, a spokeswoman for BlackRock, declined to comment on the new fund.

The New York-based firm, led by Chief Executive Officer Laurence Fink, has expanded into alternative assets such as hedge funds, private equity, real estate and energy as investors seek to diversify beyond traditional stock and bond funds. Alternatives made up $103.4 billion of BlackRock’s $4.1 trillion assets under management at the end of September, according to an earnings statement on Oct. 16.

James Keenan, BlackRock’s head of Americas credit, will be the chief investment officer of the new fund, which will be managed by David Trucano, said the person.

To contact the reporter on this story: Christine Idzelis in New York at cidzelis@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

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