Blackrock has bought an $875m (£727m) stake in Authentic Brands, making it the largest shareholder in the celebrity licensing company that owns brand rights to Marilyn Monroe and Muhammed Ali
The acquisition of a controlling stake in Authentic Brands, which also owns Sports Illustrated and Juicy Couture, marks the first investment for Blackrock’s new private equity fund, Long Term Private Capital (LTPC).
“The fund itself put $625 million and we have another $250 million that is coming from related entities and co-investors,” André Bourbonnais, head of LTPC, told Reuters.
The deal, which was first reported by the Wall Street Journal, values Authentic Brands at $4bn including debt.
Blackrock, the world’s largest asset manager, said in April that it would begin investing in LTPC, which then had $2.75bn of capital committed from key investors.
Blackrock is in the process of pushing into private equity to create new revenue sources as it reckons with declining fund fees.