Meet BlackRock's Alternative-Investments Execs Driving Growth in 2023

BlackRock is continuing to push aggressively into alternative assets beyond the traditional funds it's best known for.

So-called alternatives, those assets such as infrastructure and private equity meant for sophisticated investors, make up just 3% of the nearly $9 trillion of assets that BlackRock manages. They contribute just 11% of base fees. But when it comes to performance fees — those that BlackRock earns for generating strong returns for clients, and last year accounted for $514 million — they have an outsized impact.  

Private markets represent more than half of the firm's overall performance fees, Rob Kapito, the president of BlackRock, recently said during an industry conference. The business now has $34 billion of dry powder to invest. Once that's deployed, those investments will eventually add some $260 million of annual base fees, Kapito said.

"You can see how important alternatives are going to be for the future of BlackRock," he said during the conference held by Bank of America on February 16. 

The money manager has been on a mission to grow its $318 billion alternatives business. Behind the firm's push: already-low fees under pressure in BlackRock's core fund business, the fast-expanding private markets, and demand from clients. The stakes are high.

The leadership team steering the alternatives business has changed recently. Jim Barry, the chief investment officer for the unit, decided to leave the firm last year. The capital-markets executive Brent Patry's role was expanded last fall to include the role of deputy head of alternatives. Since 2021 the business also hired a new chief operating officer, a new head of sustainability, and two additional top executives focused on sustainable investments.

Meanwhile last year BlackRock fired the former co-heads of secondaries and liquidity solutions, along with a third managing director, after they said they planned to leave for Apollo Global Management together, Bloomberg reported.

Insider has pinpointed the key people responsible for the alternatives business today.

This list was first published in 2020. It was updated in February 2023 to reflect new reporting and changes to the leadership of BlackRock Alternatives. 

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