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Learn about BPIF from the team's lead portfolio manager and strategist
BPIF: Private equity exposure in a registered fund
At BlackRock, we’re focused on expanding the range of alternative investments available to accredited investors. The BlackRock Private Investments Fund, BPIF, is designed to deliver access to a diverse, core portfolio of institutional private equity while removing some of the friction that’s long been associated with the asset class.
Interest in private equity—particularly among individual investors—has been growing, due in part to an increasing awareness that private markets are quite large relative to public markets. It’s estimated that private companies make up 85% of the equity market while public equities only represent 15%. Additionally, over the last three decades, the number of public companies has shrunk more than 35% while the number of private companies has grown in excess of 40%. Very simply, if investors are not accessing private markets, they’re missing a large piece of the total market opportunity.
The challenge comes in terms of how investors can access private equity. Historically, it’s been an asset class reserved for institutional investors or “qualified purchasers” – only those who meet certain strict criteria. In addition to lack of access, the mechanics of investing in private equity through a traditional limited partnership can be cumbersome, with high minimums, complex fees, capital calls and long lockups. Built specifically for accredited investors, BPIF reduces these friction points and provides efficient access to institutional private equity. It operates as an evergreen, US registered fund, providing lower investment minimums and no performance fees. Always available via quarterly subscriptions, investments are fully funded up front with no capital calls, so investors can gain immediate exposure to diverse private equity and they can add to their exposure over time. Modest liquidity can be achieved through quarterly tender offers beginning in 2023. Last but not least, it eliminates K1s, and has standard 1099 tax reporting. Overall, we believe BPIF provides accredited investors access to institutional private equity, while overcoming many of the historical hurdles for individual investors.
Prospectus offer and risk statement: Fund’s investment program entails risk. There can be no assurance that the investment objective of the Fund will be achieved or that its investment program will be successful. A summary of certain risks associated with an investment in the Fund is set forth below and on the following pages. It is not complete, and you should read and consider carefully the more detailed description of the risks associated with an investment in the Fund described in the Fund’s Prospectus before purchasing Shares. Capitalized terms used but not defined herein have the meanings ascribed to them in the Prospectus.
Prospectus offer: Investors should consider the Fund’s investment objective, risks, charges and expenses carefully before investing. This and other information about the Fund can be found in the Fund’s current prospectus (the “Prospectus”), which can be obtained by contacting BlackRock at 800-882-0052. The Prospectus should be read carefully before investing. The Fund’s investment program entails risk. There can be no assurance that the investment objective of the Fund will be achieved or that its investment program will be successful. A summary of certain risks associated with an investment in the Fund is set forth below and on the following pages. It is not complete and you should read and consider carefully the more detailed description of the risks associated with an investment in the Fund described in the Fund’s Prospectus before purchasing Shares. Capitalized terms used but not defined herein have the meanings ascribed to them in the Prospectus.
Private equity at BlackRock
We started our broader institutional private equity business in 1999 with a simple value proposition based on three straightforward investing strategies: 1) making direct private equity investments in companies around the world; 2) making traditional and non-traditional secondary investments, and 3) committing capital to the best Private Equity managers globally. Our bread and butter historically—and the primary strategy behind BPIF—has been our direct investing activities where we’ve deployed approximately $12 billion to nearly 300 companies around the globe over the last 23 years. We’ve built our business over the last two decades into a leading institutional private equity platform, backed by the scale and resources of BlackRock, which has culminated in one of the longest track records in the industry.
We draw on our entire private equity platform with more than 50 dedicated private equity investment professionals in the US, Europe, and Asia. We bring not only the teams' network of more than 450 private equity relationships and underwriting experience, but also the differentiated aspect of BlackRock as the world’s largest asset manager. Increasingly, companies, management teams and other investors are coming to us directly because of BlackRock’s reputation in the marketplace and their desire to include BlackRock in their capital structure. This combination has led to a wide and deep sourcing pipeline as we consistently see more than 200 transactions per quarter, and when combined with a 3%-5% selection rate, means we see a lot of opportunities, but say yes to very few. BPIF leverages this entire platform to invest side by side with our institutional and qualified purchaser clients in the same investments, on the same terms, underwritten by the same team.
Prospectus offer: Investors should consider the Fund’s investment objective, risks, charges and expenses carefully before investing. This and other information about the Fund can be found in the Fund’s current prospectus (the “Prospectus”), which can be obtained by contacting BlackRock at 800-882-0052. The Prospectus should be read carefully before investing. The Fund’s investment program entails risk. There can be no assurance that the investment objective of the Fund will be achieved or that its investment program will be successful. A summary of certain risks associated with an investment in the Fund is set forth below and on the following pages. It is not complete and you should read and consider carefully the more detailed description of the risks associated with an investment in the Fund described in the Fund’s Prospectus before purchasing Shares. Capitalized terms used but not defined herein have the meanings ascribed to them in the Prospectus
Navigating private markets
Advisors. The most successful ones know that to deliver the very best for their clients, they need to stay one step ahead. Or several. They have to be agile… but consistent… while evolving to meet client demand today, and championing investment and business solutions that will attract the clients of tomorrow.
So you probably already know all about the opportunities and risks surrounding stocks and bonds…and feel that finding consistent returns and potential real yield is tougher than ever. Volatility, inflation, geopolitical risk - all of it is putting the traditional 60/40 portfolio under pressure.
Which means advisors need to allocate differently to continue delivering for clients. But what about private markets?
Over the last 30 years, private markets have become more and more essential to pay attention to. As the number of publicly listed U.S. companies has shrunk, the number of private companies grew. A lot.
Private markets, like private equity and private credit, can help investors pursue higher returns and income over public stocks and bonds.But …. many investors have been shut out of accessing private investments due to high minimums, suitability requirements, and high fees, but now, that’s changed.
Now… for accredited investors that can tolerate the risk…private markets are easier to access than ever before.
1099 tax reporting, low minimums, quarterly liquidity - these are just some of the features open to investors through accredited investment vehicles.
And best of all, with BlackRock you have a dedicated partner to navigate the world of private markets with. Together we can help you build better portfolios and become an even more successful future-thinking advisor for your clients.Find out more by signing into Advisor Center on BlackRock.com.