This section includes investor type descriptions for professional clients and market counterparties.
Professional client
A Professional Client is either: (i) a ‘deemed’ professional client; (ii) serviced-based professional client; or (iii) an assessed professional Client
(i) Deemed Professional Client
A person is a “deemed” professional client if the person is:
(ii) Service-based Professional Clients
A person is a ‘serviced-based’ professional client if
(iii) Assessed-based Professional Clients
Assessed-based professional clients can be either (i) individuals; or (ii) undertakings
Individuals
An individual (and associated joint account holders) would be classified as an ‘assessed-based professional client’ if:
Where there is a joint account in place, the secondary account holder must obtain confirmation in writing that investment decisions relating to the joint account are made for or on behalf of the secondary account holder
Undertakings
Undertakings, which are generally not individuals, would be classified as ‘assessed-based’ professional clients if it:
Market counterparties
A Market Counterparty is any person who is either:
Capital at risk. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.
New to alternative investing? Here are a few key terms and how we define them at BlackRock. Already investing in alternatives?
Alternative investments are assets that don’t fall into traditional categories such as stocks, bonds, or cash. They provide a counterweight for portfolio diversification – and some hard assets can effectively hedge against inflation.
There are two main types of alternative investments. First are private assets such as private equity, private credit, infrastructure, and real estate. They are more complex and less frequently traded than public stocks and bonds – and give investors access to additional sources of return. Hedge funds are the second type.
Private equity refers to capital not listed on a public exchange. Institutional and retail investors provide the capital for private equity, investing directly into private companies or engaging in buyouts that delist public equity.
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 in 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.
Our real assets teams help clients target their investments toward either real estate or infrastructure – helping meet their investment goals by providing a distinct range of well-defined, outcome-oriented strategies along the risk-return spectrum.
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As alternative investments become increasingly critical, we continue to evolve and innovate our alternatives platform – leveraging our technology, our scale, and our fiduciary model to better serve our clients now and in the future.
1. BlackRock as of 30 December 2022, Client assets include AUM and non-fee-paying uninvested commitments (i.e., committed capital/dry powder) from (i) BLK Core Alternatives, which includes Direct Hedge Funds managed across BLK’s investment platform and (ii) liquid credit assets. “Core Alternatives” means the “Alternatives” AUM reported in BLK’s form 10-K and 10-Q, excluding currencies and commodities. All amounts in USD.
2. Preqin. Annualized AUM as of 30/6/2021, except Hedge Funds data which is from HFR Industry Reports as of 31/10/2021. $23T AUM estimate from 12/1/2022 Preqin “Alternatives in 2022” Report. All dollar figures are in USD. Forecasts are not guaranteed and subject to change.
3. 2022 year-end annualised figure.
4. Figures refer to efront platform , 30 December 2022
Private equity is an essential element of investors’ portfolios. Our platform takes a holistic approach to investors’ private equity portfolios and is designed to offer strategies and solutions that align with client objectives and deliver persistent outperformance.
Discover leveraged finance, multi-strategy, and credit solutions across both public and private credit markets – powered by our global platform.
Our real assets teams help clients target their investments toward either real estate or infrastructure – helping meet their investment goals by providing a distinct range of well-defined, outcome-oriented strategies along the risk-return spectrum.
With over twenty years of proven experience, our hedge fund platform is differentiated in its combination of skill and scale – delivering solutions span geographies, asset classes and styles.
The BlackRock Alternatives team of 1400+ dedicated professionals partners with the firm’s multidisciplinary teams and leverages extensive company-wide resources in an effort to deliver consistent returns over the long term.
Through our BlackRock Portfolio Analysis and Solutions (BPAS) consultancy services, we’ve partnered with over 800 investors¹ to deliver innovative solutions and insights that help solve their client portfolio challenges. Discover some of the ways we could support your investment decisions.
1BlackRock Portfolio Analysis and Solutions from Jan 2018 – May 2021