Reuters - Video

EDITION: U.S. | U.K. | IN

Top News

Breakingviews: BlackRock’s next move

Thursday, Jan 23, 2014 - 03:22

Jan. 23 - Antony Currie and Jeffrey Goldfarb discuss whether it's time for the world's largest asset-management firm to snap up a private equity shop.

▲ Hide Transcript

View Transcript

Looks like it may be back to the future if a black truck at least that's what that you're talking about that today that your feet beneath -- black crow come whether it means see you maybe jumping the private exe which is where it at its first wrongful death slack cropped up reported last week. Net income of two point nine billion on assets of four point three trillion. On and Blackstone the private records get ready to report its results next week. And if the analysts are right they're gonna have the exact same netting come with two point nine billion and yet on 250 billion paths this swollen yes so I think just as well step. So I -- you get to figure it out as they're very different businesses. But at the same -- black rock -- stars sprung out of Blackstone recently was sort of small business aren't it's our 125 years ago they sold separated. Now the biggest money manager in the world right credit to Larry -- -- The question though is you know should they be getting into these more lucrative. -- business is right private equity which clearly based on the numbers tells you. Tells a lot of it has a little sparkles it it's it doesn't get used caused -- -- -- if you look at whether it's to a trading. Well he's wet wet also customized the trading around 1011 times I don't know it was a black rock you know they they try to build a private equity business they've they've already kind of thought about this a little bit. They tried to build one's starting at about -- recruited over Tina from barrel it just didn't work in the market was an understated and other private equity fund. The question is whether they could buy one now. Now I don't think they can -- -- you know be very poetic of people back and I would just say you parents for a -- and now they hit it says take Hewitt unlikely to happen financially feasible on black -- worth about 5560 billion dollars market value Blackstone. Close -- flooding. But pretty unlikely what what I think is more likely to happen if you have these private equity firms that sort of missed the way you vote phone firms going public -- public markets. TPG Hellman and Friedman Providence equity -- Rabin to a certain extent at least -- he's not one big issue tackles which is the senior cannot see your partner has alerted you know they've seen what what you know how you can liquidate. But the public markets may be out of reach at this stage we don't know. On so maybe black Crocker come along by one. And you know it would it would solve a lot of problems on the sell side by side as you mentioned earlier in the multiples made a pretty compelling to. Because black cropped trades at about seventeen times because he's the generator pretty steady up the market likes them private equity because as long -- based on how they can harvest their businesses. Trade Blackstone Carlyle those guys trader at eleven time for a further scope for them to pay for it. And you know if the market's willing to bend shift a little bit. Those earnings worth so much more days and is as any corner and the pace is not as -- not buckled being saved me now hasn't been used to grow organic to the in any way shape of the airport trillion dollars -- use it you know they're looking at growing 45%. Turned him money under in the that managing. Blackstone is still growing equipment cart sales of this issue where Blackstone and the other traditional private equity firms. Are now just starting to go after retail investor and that's gonna start cutting into black profit fundraising so a lot of -- -- -- really good reason to get into this there. Thanks Jeff I'm will be applicable breaking -- mark.

Breakingviews: BlackRock’s next move

Thursday, Jan 23, 2014 - 03:22

Top News »

The Exchange »

Moving Pictures »