BlackRock announces investment in Authentic Brands Group as part of its Private Equity Strategy

BlackRock, the world’s largest asset management firm, has agreed to a deal with Authentic Brands Group, in which the asset manager will invest USD 875 million into the brand management company.

Authentic Brands Group, which has been valued at over USD 4 billion prior to this deal being completed, has over 50 major brands under its management, and celebrities’ likenesses, such as Shaquille O'Neal, Muhammad Ali and Elvis Presley’s.

This deal is the first for BlackRock’s Long-Term Private Capital Fund, which indent to make deals with companies which allow the fund to hold them for at least 10 years. The fund, which BlackRock was seeking to hold between USD 10 – 12 billion, has disclosed just USD 2.75 billion so far, according to a report by PitchBook, as the asset manager has struggled to find limited partners.

As Authentic Brands Group generates around USD 10 billion in annual revenue, the firm was an attractive prospect for the asset manager. The group covers clients and brands across 70 countries, and BlackRock seems intent on support the brand manager in continuing to grow.

Jamie Salter, the Authentic Brands Group’s founder and CEO, said in a press release: “BlackRock's scale, global footprint and digital capabilities will enable us to build out our organization and continue our domestic and international growth trajectory.”

The brand manager has been operating for nearly 10 years, and represents brands across the lifestyle, entertainment, fashion, and sporting industries.