BlackRock Cuts First Private Equity Deal for Authentic Brands

August 12, 2019 | News, Private Equity

BlackRock becomes the largest stakeholder in a company with a powerful portfolio of global brands.

BlackRock announced over the weekend that it scored a 30% stake in Authentic Brands. 

The deal means that BlackRock’s portfolio will now include a stake in Sports Illustrated, Nine West, Aeropostale, and Juicy Couture. In addition, Authentic owns more than 50 brands. It also owns the celebrity likeness to Muhammad Ali, Elvis Presley, Shaquille O’Neal, and Marilyn Monroe, according to the firm’s website.

The $875 million investment will make BlackRock the largest shareholder in Authentic Brands, which has a valuation of $4 billion.

BLK Enters Private Equity

It’s worth noting that this was the first investment by BlackRock’s new private equity fund. In April, the asset manager launched Long Term Private Capital after $2.75 billion. Back when Blackrock announced the fund, managing director André Bourbonnais discussed the benefits of LTPC’s model.

“There’s a large population of strong, stable companies with a reciprocal need for a long-term private ownership model,” Bourbonnais said in a statement. “For these companies, neither a public listing nor a leveraged buyout is an attractive option. LTPC is aligned to meet those needs.”

Private equity firms had backed Authentic for some time. Existing shareholders include Brookfield Properties, Leonard Green & Partners, General Atlantic, Lion Capital, and Simon Property Group.

Finally, Authentic Brands Group CEO Jamie Salter told CNBC his family will still control 20% of the firm after the deal. He said that they cut this deal to establish a long-term relationship with Blackrock of “more than 10 years,” according to CNBC’s Brian Sullivan.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.

Alt Insights

January 29, 2020

Venture Capital: The Kobe in “Bryant Stibel & Co”

Venture Capital: The Kobe in “Bryant Stibel & Co”

Latest Alternative Investment News

Alternative Investments: Activists Will Get Busy Soon, Says Tim Melvin

As companies become more undervalued as the economy slows because of shutdown orders across the United States, I expect that the pace of activist activity to increase. We should see…
Private Equity: Active Triage Happening at KKR and Other Funds
April 2, 2020     News, Private Equity

KKR & Co (NYSE: KKR) has shelved a plan to sell Singapore-based Goodpack, a Singapore based shipping containers, and logistics services.  They had bids for the company that was said…
FinTech: Kyash Closes $45M Series C Funding
April 2, 2020     FinTech, News

Kyash, a Japanese fintech startup aspiring to be a leading challenger bank, gained $45 million in a Series C funding. The round was co-led by Greenspring Associates and Goodwater Capital,…
Liquid Alternatives: Investors Shovelled $677B Into Money Market Funds In Scramble to Safety
April 2, 2020     Liquid Alternatives, News

Investors set up a record-breaking first quarter this year for inflows into U.S. money market funds. These funds gained from the massive risk-off sentiment that prevailed as investors realized the…

Scroll to Top