3 ms·
<The fact that Blackrock did this deal doesn't tell you anything about who is exposed to the upside or downside Can you explain this part more? Does blackrock
by johndhi 3y ago
<The fact that Blackrock did this deal doesn't tell you anything about who is exposed to the upside or downside
Can you explain this part more? Does blackrock not invest its own money in deals? And are specific deals specific to blackrock customers or do they just take a percent of their overall holdings and invest them in individual deals?
- govg 3y agoMost of the money "invested" in this deal belongs to institutions and individuals who have chosen to invest in BlackRock products. A trivial example is if your pension is with BlackRock, they are investing on your behalf and they get a very minor fee for it (minor in terms of percentage, not value). So while the headline is that BlackRock invested in ABC, the actual exposure to the profits or losses is for the people whose money they have invested. The amount of money BlackRock might invest of their own is usually negligible ( sometimes called coinvesting or balance sheet investing, not common for larger firms like fidelity or BlackRock). What the exact flow is will depend ultimately on how the fund is structured. For example, Goldman will run a private equity focussed fund that you can put money in as a customer, so if you did put money in it, they would invest in similar deals on your behalf. Other customers of Goldman may or may not choose to invest in that fund, preferring something like a bond fund or equities fund etc.
- allendoerfer 3y agoBlackrock is an asset manager. You can go to ishares.com, search for an ETF, buy shares of it and Blackrock will have your money investing it on your behalf. It will take away a small percentage of your money every year to pay costs and make its profits, but you will profit from the returns of the investment itself.