According to reports, the world's largest asset management company, BlackRock, has attempted to acquire the alternative asset management giant, Huaping. The two parties have been in contact for nearly two years, with BlackRock hoping to acquire a majority stake in Huaping, but the offer was rejected.
According to insiders, the contact between the two parties was brief and key issues such as price and formal structure were never discussed. After the failed acquisition attempt last year, BlackRock also discussed the development of joint products with Huaping.
Although no agreement was reached in the above negotiations, BlackRock is still looking for acquisition targets to enter the alternative investment field and further enhance its position in private equity.
BlackRock CEO Larry Fink sees alternative investments as a key strategic growth area, but the competitiveness of BlackRock's alternative investment products is not as strong as that of established alternative asset management companies like Huaping. Therefore, BlackRock is interested in cooperating with Huaping or even seeking acquisition.
Traditional asset management companies such as Franklin Templeton, Alliance Bernstein, and T Rowe Price have been competing to acquire alternative asset management companies. Compared to equity and bond funds, alternative investments have a faster growth rate and higher management fees. However, differences in compensation and culture may complicate the integration of such acquisitions.
BlackRock manages approximately $9 trillion in assets, including around $130 billion in long-term alternative funds, as well as hedge funds, commodities, and currency funds. In addition, BlackRock sells technology used by thousands of institutional investors and financial advisors worldwide.
Earlier this year, Larry Fink publicly expressed interest in acquisitions, stating that he was looking for another &#34;transformative&#34; deal.
He outlined his ambitions during BlackRock's October earnings conference call:
<blockquote>
&#34;[We are] looking for different opportunities related to technology and the private markets. We have been engaged in conversations, and the team and I are challenged to think more broadly and openly about the opportunities we have.&#34;
</blockquote>
The private equity industry is undergoing significant transformation. Other private equity giants, such as CVC Capital and General Atlantic, are also considering their futures and have prepared preliminary plans for going public. Meanwhile, listed groups such as TPG, Brookfield, and KKR have been engaging in ambitious acquisitions in recent years.

BlackRock is still searching for acquisition targets to enter the alternative investment field and further enhance its position in the private equity market.

Breaking news! BlackRock wanted to take control of Huaping, but the negotiations fell through.