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BlackRock to Buy R3
By JOSEPH CHECKLER and JENNY STRASBURG
Updated April 18, 2009 12:01 a.m. ET
NEW YORK -- Money manager BlackRock Inc. will acquire hedge-fund manager R3 Capital Management LLC, which runs $1.5 billion in credit strategies.
Little cash will change hands in the deal, which has been agreed upon but hasn't closed, according to a person familiar with the matter. BlackRock, which was an original investor in the hedge-fund firm, will manage R3's portfolio when the deal is completed, a BlackRock spokeswoman said.
In an internal memo, BlackRock said R3 President and Chief Executive Rick Rieder, a former executive from Lehman Brothers, will join BlackRock as managing director and head of BlackRock's fixed-income alternative-investments team. He will continue to manage R3. Lehman was an investor in R3, and sold its stake as part of its bankruptcy last year.
News of the agreement was reported by Bloomberg News.
Market turmoil toppled some big established hedge funds last year, causing a wave of closures that continue, and driving others to merge or sell assets to stronger firms. |