BlackRock Eyes Calpers' Buyout Business

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.

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

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

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

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

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