BlackRock (BLK) raised $2.75 billion of seed capital for its Long Term Private Capital fund, a perpetual fund that will make long-term investments in companies, a BlackRock spokesman said.
Cornerstone investors committed the seed capital for the fund that includes $1.25 billion in current commitments by the investors and BlackRock and an additional $1.5 billion when the fund reaches its target of $10 billion to $12 billion.
Investors in the fund include Minnesota State Board of Investment, St. Paul, which manages about $94 billion in state funds, including $67 billion for public pension funds.
"This is huge news, it may change the dynamics of the PE market," said Christopher J. Ailman, CIO of $226.5 billion California State Teachers' Retirement System, West Sacramento, in a tweet. "New structure, new life and new alignment with L.P.s. It WILL change the landscape."
It could not be learned whether CalSTRS has made a commitment to the fund.