Key Takeaways
- • BlackRock is raising up to $2 billion for BlackRock Private Opportunities Fund V, a co-investment vehicle, with more than $300 million already committed as of early 2022.
- • The predecessor fund (Fund IV, closed in 2018) raised $1.6 billion from institutional LPs including KBC Group, Icelandic General Pension Fund, and West Midlands Pension Fund, demonstrating strong LP appetite for BlackRock's co-investment strategy.
- • Co-investment funds are gaining traction across the PE industry as sponsors compete for LP capital; PitchBook's lead PE analyst expects PE firms to increase use of co-investments and alternative structures in 2022 to attract capital.
- • BlackRock is simultaneously raising $2–3 billion in fresh capital for its long-term private capital strategy and recently closed a $1.67 billion global infrastructure debt fund and a $3 billion secondary market PE fund in 2021.
- • As a $10 trillion asset manager, BlackRock is leveraging its scale and institutional relationships to expand its alternative capital offerings across multiple fund structures.
Summary
BlackRock is pursuing up to $2 billion in commitments for BlackRock Private Opportunities Fund V, a dedicated co-investment vehicle designed to capitalize on growing institutional investor interest in co-investment opportunities alongside traditional PE fund structures. According to PitchBook's exclusive reporting, the firm has already secured more than $300 million in commitments for the new fund, which entered the market earlier in 2022.
The fundraising builds on the demonstrated success of the fund's 2018-vintage predecessor, Fund IV, which closed on $1.6 billion in committed capital. Fund IV's LP base included institutional heavyweights such as KBC Group, Icelandic General Pension Fund, and West Midlands Pension Fund, signaling strong institutional confidence in BlackRock's co-investment thesis. BlackRock has not publicly disclosed portfolio companies held within Fund IV, though PitchBook data suggests the vehicle may have financed the firm's May 2020 investment in ContentSquare, a digital experience analytics company. The predecessor vehicle, Fund III, closed in 2016 with over $630 million and targeted consolidation and roll-up opportunities, corporate carve-outs, energy special situations, and growth investments in Asia, among other strategies.
The co-investment strategy aligns with a broader industry trend. PitchBook's lead PE analyst Wylie Fernyhough observed that PE sponsors are intensifying competition for limited partner capital and increasingly turning to co-investment vehicles and alternative fund structures as differentiation tools. This fundraising effort forms part of BlackRock's broader expansion of alternative capital products. The firm closed a $1.67 billion global infrastructure debt strategy and a $3 billion secondary market PE fund in 2021, and is simultaneously pursuing an additional $2–3 billion for its long-term private capital strategy, according to Bloomberg reporting.
BlackRock, which managed more than $10 trillion in assets at year-end 2021, declined to comment directly on the Fund V fundraising, but the activity reflects the firm's strategic positioning to meet institutional investor demand for diversified exposure across PE co-investments, infrastructure, secondaries, and long-term private capital vehicles.
The fundraising builds on the demonstrated success of the fund's 2018-vintage predecessor, Fund IV, which closed on $1.6 billion in committed capital. Fund IV's LP base included institutional heavyweights such as KBC Group, Icelandic General Pension Fund, and West Midlands Pension Fund, signaling strong institutional confidence in BlackRock's co-investment thesis. BlackRock has not publicly disclosed portfolio companies held within Fund IV, though PitchBook data suggests the vehicle may have financed the firm's May 2020 investment in ContentSquare, a digital experience analytics company. The predecessor vehicle, Fund III, closed in 2016 with over $630 million and targeted consolidation and roll-up opportunities, corporate carve-outs, energy special situations, and growth investments in Asia, among other strategies.
The co-investment strategy aligns with a broader industry trend. PitchBook's lead PE analyst Wylie Fernyhough observed that PE sponsors are intensifying competition for limited partner capital and increasingly turning to co-investment vehicles and alternative fund structures as differentiation tools. This fundraising effort forms part of BlackRock's broader expansion of alternative capital products. The firm closed a $1.67 billion global infrastructure debt strategy and a $3 billion secondary market PE fund in 2021, and is simultaneously pursuing an additional $2–3 billion for its long-term private capital strategy, according to Bloomberg reporting.
BlackRock, which managed more than $10 trillion in assets at year-end 2021, declined to comment directly on the Fund V fundraising, but the activity reflects the firm's strategic positioning to meet institutional investor demand for diversified exposure across PE co-investments, infrastructure, secondaries, and long-term private capital vehicles.
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