NEW YORK (HedgeWorld.com)–BlackRock Inc. agreed to buy a majority interest in HPB Management LLC, a hedge fund of funds manager run by Howard P. Berkowitz.
Terms of the deal, expected to close April 30, were not disclosed.
Mr. Berkowitz and HPB, with US$150 million under management, will be the centerpiece of BlackRock’s fledgling funds of funds effort. Mr. Berkowitz, who will be a managing director and chief executive for BlackRock’s hedge funds of funds operation, has run a hedge fund of funds for HPB since January of 2000. And before that, he managed an equity hedge fund for HPB and also co-founded Steinhardt Fine Berkowitz & Co. in 1967 with Michael Steinhardt.
BlackRock mainly is known in the hedge fund world for its US$1.5 billion in fixed-income hedge funds. But the firm in September bought Cyllenius Capital Management LP, Boston, giving the firm its first equity hedge fund Previous HedgeWorld Story.
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BlackRock agreed to pay US$1.9 million in upfront payments plus contingency payments due this coming September and January for Cyllenius, according to BlackRock’s annual report. At the time, Cyllenius managed about US$100 million.