BlackRock Eyes Calpers' Buyout Business

BlackRock Eyes Calpers' Buyout Business

Assessment

Interactive Video

Business

University

Hard

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The video discusses CalPERS' reliance on private equity for returns and the challenges it faces from ratepayers. It explores BlackRock's potential role in managing CalPERS' private equity funds to achieve better returns at lower fees. The video also highlights BlackRock's strategy to diversify its revenue by increasing its involvement in alternative investments, which typically have higher fees than ETFs.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main reason CalPERS is considering a deal with BlackRock?

To exit the private equity market

To focus solely on public equity investments

To manage private equity at lower fees

To increase their investment in ETFs

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What challenge is CalPERS facing with its current private equity strategy?

Increasing returns compared to other asset classes

Decreasing pushback from ratepayers

Narrowing returns and ratepayer pushback

Lack of interest from Wall Street firms

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is BlackRock interested in diversifying beyond ETFs?

Alternative investments offer higher fees

ETFs are too risky

ETFs are not popular anymore

ETFs have high fees

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a characteristic of alternative investments compared to ETFs?

They are less profitable

They have longer lockups

They are more liquid

They have lower fees

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do alternative investments benefit BlackRock financially?

They provide lower fees

They have no lockup periods

They offer higher fees and more control

They are easier to manage