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BlackRock, the world’s largest asset manager, has lined up a USD 5 bn commitment from the Public Investment Fund (PIF) as part of a push to grow in the Kingdom, the two outfits said in a statement yesterday. The US-headquartered investment giant is setting up a new entity — BlackRock Riyadh Investment Management — which will be run by BlackRock and PIF.
A team in Riyadh to bring it together: A Riyadh-based investment team will manage the multi-asset platform, which will integrate strategies across multiple asset classes. It will also be looking to secure additional funding from local and foreign investors. The team will be “supported by BlackRock’s industry-leading global asset management platform,” they said.
What they said: “The continued growth of the kingdom’s capital markets and diversification of its financial sector will contribute to future prosperity for its citizens,” BlackRock CEO Larry Fink said. “Saudi Arabia has become an increasingly attractive destination for international investment.”
Investing in talent: BlackRock Saudi Investment Management (or Brim, as the unit will be known) will staff up by “relocating experienced investment professionals” and will run a graduate training course to develop young Saudi talent.
REMEMBER- BlackRock has had its eye on Saudi for a while: The world’s biggest asset manager has been on what Bloomberg earlier this year called an “aggressive hunt for growth in Saudi Arabia.” Fink is here to visit multiple times per year, its 20-person Saudi team (now set to grow) is the biggest among its peers and challengers, and the firm is “embedding itself in different parts of the country’s institutions and capital markets,” the business information service wrote.
This announcement makes clear what the dinner was about… The firm hosted a private gathering earlier this week in Riyadh to highlight potential investments in the Kingdom for key corporate executives and regional investors. Key speakers at the event included PIF Governor Yasir Al Rumayyan and Energy Minister Prince Abdulaziz bin Salman.
The story is getting plenty of attention in the global press: Financial Times | Retuers | Bloomberg | Wall Street Journal.
