(Reuters) - BlackRock Inc named Morgan Stanley banker and long-time financial advisor Gary Shedlin as its next chief financial officer, to succeed Ann Marie Petach.
Shedlin, who served as advisor to BlackRock on virtually all of its most significant deals, will join the money manager on March 11 and take over as CFO on completion of Petach’s tenure after the company’s first-quarter results, the New York-based firm which oversees nearly $4 trillion said in a statement on Tuesday.
Most notably, Shedlin advised on BlackRock’s 2009 purchase of Barclays’ investment business to create the world’s largest money manager. The former Barclays exchange-traded fund unit, iShares, has been a stellar performer and helped the New York-based firm please investors with expanding profit margins.
Despite Shedlin’s extensive merger and acquisitions experience, BlackRock said he is not joining to initiate a major round of dealmaking.
“Management has been very clear that we’re not going to do any major strategic transactions,” spokesman Brian Beades said. “There is no appetite for those.”
The firm will continue to pursue smaller deals to fill in missing components, such as the recent deal to acquire the European exchange-traded fund business of Credit Suisse, Beades said.
BlackRock shares, which have risen 28 percent in the past three months, closed on Tuesday down 59 cents, or 0.3 percent, to $238.86.
Shedlin is currently vice chairman-investment banking at Morgan Stanley and has previously worked with Citigroup and Lazard Ltd.
Morgan Stanley declined to comment.
Shedlin had decided that after 25 years in investment banking, he wanted to do something new, according to a person familiar with the situation, who requested anonymity. His departure was not related to events at Morgan Stanley, the person said.
BlackRock chief executive Laurence Fink and Shedlin have talked about working together for some time, but conversations grew more serious after the retirement vice chairman Susan Wagner last year, the person said. Around that time, Petach had also expressed interest in changing roles.
Petach will join the firm’s BlackRock Solutions unit as a senior managing director in the client solutions business and will help develop initiatives with a focus on offerings for public and private pension funds, the company said.
Reporting by Aman Shah in Bangalore, Aaron Pressman in Boston and Jessica Toonkel in New York; Editing by Sriraj Kalluvila and Bob Burgdorfer