What BlackRock’s leadership shakeup means for real estate

The world’s largest asset manager is appointing new executives, re-evaluating investments in real estate and other alternatives

National /
Apr.April 07, 2019 11:00 AM

From left: Edwin Conway, Jim Barry (Credit: BlackRock)

BlackRock, the world’s largest asset manager with $6 trillion under management, is restructuring its leadership.

The company’s investment group BlackRock Alternative Investors, which handles private equity, direct lending, real estate and other alternatives to publicly traded stocks and bonds, will now be led by Edwin Conway, the Financial Times reported. Conway used to lead BlackRock’s institutional client business group; his predecessor, David Blumer, is taking a non-leadership advisory role.

The asset manager’s head of real assets, Jim Barry, was appointed chief investment officer. In his prior role, Barry had led BlackRock’s real estate and infrastructure teams.

The shakeup comes as a new study by Oliver Wyman and Morgan Stanley predicts that alternatives will account for 40 percent of all revenue in the asset management industry by 2023. The study’s forecast also calls for a decline to 36 percent in the share of revenue from traditional, actively managed funds that focus on emerging markets.

Mike McLaughlin, a partner at Naissance and fund manager consultant, told the Times that BlackRock has struggled with its alternatives business because it is vaguely defined.

The asset management giant recently agreed to pay $1.3 billion for alternative-investment technology provider eFront. Last year, BlackRock bought Tennenbaum Capital Partners to get a bigger foothold in the rapidly growing private debt business and the company is reportedly considering a bid for AMP, an Australia-based manager of infrastructure assets and real estate. [FT] – Mike Seemuth


Related Articles

arrow_forward_ios
AIMCO founder Terry Considine and a rendering of the Grand Flamingo tower
Miami Beach board rejects Aimco’s proposal for Grand Flamingo tower
Miami Beach board rejects Aimco’s proposal for Grand Flamingo tower
Aventura Mayor Enid Weisman (Facebook via Weisman, Getty)
Aventura votes to require HOAs to submit critical reports within 48 hours
Aventura votes to require HOAs to submit critical reports within 48 hours
The current Miami Beach North Shore library with Mayor Dan Gelber (Google Maps, Gelber)
Miami Beach seeks buyers for city-owned development sites
Miami Beach seeks buyers for city-owned development sites
The partially collapsed 12-story Champlain Towers South condo building (Getty)
Inside the tug-of-war over the Surfside condo site’s future
Inside the tug-of-war over the Surfside condo site’s future
 Adam Neumann (Getty, Bal Harbour Florida)
Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
Alex Sapir and Giovanni Fasciano with Arte by Antonio Citterio in Surfside (Photos via Arte by Antonio Citterio/PR Newswire)
Miami penthouse sets cryptocurrency sale record: $22.5M
Miami penthouse sets cryptocurrency sale record: $22.5M
(iStock)
South Florida resi construction starts soar in March
South Florida resi construction starts soar in March
Eden Multifamily heads Jay Massirman and Jay Jacobson with Cypress Equity Investments CEO Michael Sorochinsky (rendering courtesy of MSA Architects)
Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...