Alternative investing at BlackRock

There is private market investing, in assets like private equity, private credit, infrastructure, and real estate, which are traded less frequently than public assets and may offer potential additional returns. And liquid alternatives - hedge funds and listed funds investing in underlying private markets assets.

Private equity (PE) refers to investments in non-publicly listed private companies. Investors provide the capital to PE funds, which is then invested into these companies, to add value through strategies like geographic expansion, strategic acquisitions, cost optimisation or long-term strategic planning.

Private credit (sometimes referred to as “direct lending” or “private lending”) is an alternative to bank lending for businesses that want to raise capital. Private credit is a debt that is not issued or traded on the public markets.

Hedge funds are the second type of alternative investments and represent a core pillar of our alternatives platform at BlackRock. They are pooled investment funds that are actively managed using complex trading techniques in an attempt to improve performance. These may include leverage, short selling, and derivatives.

Real estate (RE) & infrastructure are investments that provide direct ownership of nonfinancial assets, such as infrastructure traditionally controlled by the public sector or real estate. They can be accessed via private markets or listed equity markets.