BlackRock Inc. has started a capital-markets unit that will give its money-management clients direct access to bond sales and may expand to equities later, Steve Sterling, the head of the unit, said in an interview.
Mr. Sterling last month joined New York-based BlackRock to start the capital-markets effort, from private- equity firm Carlyle Group, where he led the U.S. credit unit.
Last year, BlackRock bought and sold more than $3.4 trillion in bonds for its clients.
Chief Executive Officer Laurence D. Fink, who made BlackRock the world's largest fixed-income manager with last year's acquisition of Barclays Global Investors, is seeking ways to lower costs for clients by leveraging his firm's $3.36 trillion in assets and last year started his own trading platform. Unlike Kohlberg Kravis Roberts & Co. and Citadel Investment Group LLC, which have set up securities units to rival Wall Street banks decimated by the financial crisis, BlackRock won't underwrite any deals or seek extra fees.
“We see our size and scale as a competitive advantage,” Richard Prager, BlackRock's head of global trading for fixed- income, said in an interview. “We can partner with the Street and work with borrowers to source assets on a very systematic basis” for investors.