Blackstone and BlackRock Master the Art of Moneymaking
The public market’s love for management fees is forcing these private asset managers to fundraise nonstop and venture into new fields.
The high price of so much scrutiny.
Photographer: Nathan Laine/BloombergTwo major events are shaking up the asset-management world. Blackstone Inc. raised $1.3 billion for its first retail private equity fund, targeting those who have at least $5 million to invest. Separately, BlackRock Inc. is buying Global Infrastructure Partners for $12.5 billion, a major foray into alternative investments. The acquisition will make it the second-largest manager of private infrastructure assets.
After blowing past major milestones — the pair now manages over $1 trillion and $10 trillion, respectively — Blackstone and BlackRock need to show investors they still have a good story to tell. The two deals showcase just that.