Side Letter: Browder investing, Apollo’s 7, BlackRock’s alts, CFO futures

Bill Browder on his investment view, Apollo eyes seven fundraises, BlackRock's sweeping changes. Today's brief is for our valued subscribers only.

Just happened

Browder on investing

Bill Browder invests his fortune in developed, private markets. His reasoning? Rule of law, property rights and independent courts are “not a useful addition, they are an absolute essential part of any investment case”.

In a video with PEI, Browder says a raft of changes are needed to make Russia an investable market once more.

Apollo 7

Apollo Global Management wants to raise around $9 billion across seven separate capital raises this year, Bloomberg is reporting (paywall). The funds will target strategies including Indian credit and life settlements and features one that allows investors to participate in deals alongside Athene, its insurance company.

Here’s an interactive chart showing how Apollo’s PE funds performed as of Q4.

Funding Japanese

Longreach Group, a Japanese mid-market firm, has increased its exposure to domestic capital in Fund III. Japanese LPs provided 40 percent of the capital in the $650 million fund, up from 34 percent of its $400 million 2011-vintage Fund II, according to investor relations director Lisa Herrell.

Japanese LPs are warming to alternatives. The $700 billion Japan Post Insurance plans to deploy as much as 1.5 percent of its total AUM – about $10 billion – in private equity, real estate, infrastructure and hedge funds by 2020. Government Pension Investment Fund, the largest pension in the world with $1.5 trillion in assets, has also been given permission to invest in alternatives via a limited partnership structure.

Essentials

BlackRock shakes it up. Change is sweeping BlackRock and the alternatives team is at the centre, according to The Wall Street Journal (paywall). Head of the institutional client business Edwin Conway will take over day-to-day management of the team, while real assets head Jim Barry will become the unit’s investment chief. Alternatives, which for BlackRock encompass PE, infrastructure and credit, among other asset classes, account for just 0.14 percent of its $6 trillion in AUM, but the firm has been growing this. Expect another shift in gear.

CFO. What will the role of a private equity CFO look like in five years’ time? This short video from sister title pfm features seven CFOs in the industry. Some see the finance part of the role shrinking, some see CFOs getting more involved in portfolio companies and, of course, technology will be a big factor.

We’re doing a deep dive on the role of robotics in a CFO’s armoury and we’d like to hear from CFOs and service providers. E-mail us here.

Inside tip

In London this afternoon? PEI senior reporter Carmela Mendoza will be at the launch of SGG Group’s 2019 Private Equity outlook survey. She’d love to catch up with you if you’re there.

Dig deeper

Want more data? There are more than 6,700 institutions in our database, including BlackRockLongReachApollo and Advent from today’s Side Letter.

She said it

“This is something he is being prosecuted for in his personal life but that doesn’t speak to impact investing more broadly or the credibility of impact investing as an industry.”

Global Impact Investing Network director of strategy Sapna Shah on the charges against TPG Rise Fund founder Bill McGlashan.


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Today’s letter was prepared by Isobel MarkhamAdam LeRod JamesAlex Lynn and Brian Bonilla.


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