ALTERNATIVE THINKING - FOR QUALIFIED INVESTORS

Case Study: LibreMax Capital

BSF Multi-Manager Alternatives Strategies Fund


BlackRock believes in the value of early stage support
One of our underlying partnerships is with LibreMax Capital, which brings expertise in the long/short credit space, specifically looking at asset-backed securities. We have been investing with LibreMax for 10 years.

Background
Former Deutsche Bank man Greg Lippmann is one of Wall Street’s most acclaimed traders of residential mortgage-backed securities (RMBS), so much that he was featured in the Michael Lewis book, The Big Short.

Through a long-standing relationship with Lippmann, BlackRock was well-placed as a seed investor when he launched LibreMax in 2010.

Since its first meeting with Lippmann in 2003, BlackRock has had more than 900 touch points with the LibreMax organisation, including a further 14 meetings with Lippmann himself.

A meeting of minds
That initial meeting paved the way for detailed discussions about collateralised debt obligations with BAA’s research/risk team in 2007, fleshing out partnership potential in 2008, with a formal early due diligence process commencing in March 2010 - a month before Lippmann left Deutsche Bank.

In October, he launched LibreMax, with supported from BlackRock as a day one, dollar one, anchor investor.

We believe these long-standing relationships create goodwill and the ability to structure unique opportunities, such as this exclusive BAA UCITS sub-adviser arrangement with LibreMax.

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