More investors demanding transparency from private markets: BlackRock's Aladdin
[SINGAPORE] Investors today want to know what their money is going into – even within private market assets, said Tarek Chouman, global head of Aladdin Client Business at BlackRock.
'People are expecting to understand where their money is going, which company is being held by the fund, how the company is performing against the expectations of the general partner,' he added.
Aladdin is a technology platform built by BlackRock for portfolio management.
And not only do investors want to know exactly where their money is going, they also want the specifics of how a fund is performing. For instance, if a fund with a portfolio of companies manages to sell one of its companies for a windfall while the rest perform poorly, the outsized sale of that one company would skew the fund's performance.
When the general partner (GP) of the fund looks to raise the next fund based on the previous fund's performance, investors would not know the real reason for the outperformance without the specifics.
'If you know that the allocation of the performance was related to one company out of 40, you wouldn't commit your money for the fund,' said Chouman.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
With private markets forecast to grow to US$30 trillion globally by 2030, it is a significant asset class that asset managers are not ignoring.
Exposure to private markets vary by region and country, and Chouman estimates that institutional players in Japan have one of the lowest exposures at 5 per cent, with Singapore much higher, and Australia probably with the highest.
Aladdin is also trying to plug the gap in transparency and visibility in private markets with its February 2025 acquisition of Preqin, a data platform for alternative and private market assets.
The acquisition was powered by the belief that private markets data will grow in value because of its current scarcity. Chouman said the move by private markets data towards transparency mirrors that of public markets data, paving the way towards convergence of the two segments in the coming years.
He said Aladdin has the most accurate post-investment data, as it has its clients' consent to get it direct from their asset managers. In this same push for data becoming more accessible, Preqin offers pre-investment data, which it gets from media reports and calls through Aladdin's direct connections with GPs.
'It is the most comprehensive that exists in the industry,' said Chouman.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
20 minutes ago
- Straits Times
Trump says Nippon-US Steel deal has resolvable national security risk, paves way for its approval
US President Donald Trump said on June 13 that concerns over national security risks posed by Nippon Steel's US$14.9 billion bid for US Steel can be resolved if the companies fulfill certain conditions that his administration has laid out, paving the way for the deal's approval. Shares of US Steel rose 3.5 per cent on the news in after-the-bell trading as investors bet the deal was close to done. Mr Trump, in an executive order, said conditions for resolving the national security concerns would be laid out in an agreement, without providing details. 'I additionally find that the threatened impairment to the national security of the United States arising as a result of the Proposed Transaction can be adequately mitigated if the conditions set forth in section 3 of this order are met,' he said in the order, which was released by the White House. The companies thanked Mr Trump in a press release, saying the agreement includes US$11 billion in new investments to be made by 2028 and governance commitments including a golden share to be issued to the US government. They did not detail how much control the golden share would give the US. Shares of US Steel had dipped earlier on June 13 after a Nippon Steel executive told the Japanese Nikkei newspaper that its planned takeover of US Steel required 'a degree of management freedom' to go ahead after Mr Trump earlier had said the US would be in control with a golden share. The bid, first announced by Nippon Steel in December 2023, has faced opposition from the start. Both Democratic former President Joe Biden and Mr Trump, a Republican, asserted last year that US Steel should remain US-owned, as they sought to woo voters ahead of the presidential election in Pennsylvania, where the company is headquartered. In January, Mr Biden, shortly before leaving office, blocked the deal on national security grounds, prompting lawsuits by the companies, which argued the national security review they received was biased. The Biden White House disputed the charge. The steel companies saw a new opportunity in the Trump administration, which began on Jan 20 and opened a fresh 45-day national security review into the proposed merger in April. But Mr Trump's public comments, ranging from welcoming a simple 'investment' in US Steel by the Japanese firm to floating a minority stake for Nippon Steel, spurred confusion. At a rally in Pennsylvania on May 30, he lauded an agreement between the companies and said Nippon Steel would make a 'great partner' for US Steel. But he later told reporters the deal still lacked his final approval, leaving unresolved whether he would allow Nippon Steel to take ownership. Nippon Steel and the Trump administration asked a US appeals court on June 5 for an eight-day extension of a pause in litigation to give them more time to reach a deal for the Japanese firm. The pause expires on June 18, but could be extended. June 18 is also the expiration date of the current acquisition contract between Nippon Steel and US Steel, but the firms could agree to postpone that date. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
20 minutes ago
- Straits Times
Trump reports tens of millions in income from crypto ventures
Mr Donald Trump reported US$57.35 million (S$73 million) from token sales at crypto firm World Liberty Financial. PHOTO: REUTERS Trump reports tens of millions in income from crypto ventures President Donald Trump filed his first public financial disclosure report of his term on June 13, providing what he said was the latest information about his holdings, including income from his family's foray into cryptocurrencies. Mr Trump reported US$57.35 million (S$73 million) from token sales at crypto firm World Liberty Financial. He also reported holding $15.75 billion governance tokens in the venture. The annual report was signed as of June 13, but it was not immediately clear what time period it covered. The disclosure also showed the income from Mr Trump's properties in Florida. Mr Trump's three golf-focused resorts in the state - Jupiter, Doral and West Palm Beach – plus his nearby private members' club at Mar-A-Lago, generated at least $217.7 million in income, according to the filing. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
2 hours ago
- Straits Times
While You Were Sleeping: 5 stories you might have missed, June 14, 2025
Fire and smoke rising from a building in central Tel Aviv, after it was reportedly hit by a missile fired from Iran, on June 13. PHOTO: AFP While You Were Sleeping: 5 stories you might have missed, June 14, 2025 Iran fires back at Israel after targeting of nuclear facilities Iran fired a barrage of ballistic missiles at Israel in a counter-strike on June 13, after an unprecedented onslaught hammered the Islamic republic's top military brass and targeted its nuclear facilities and bases. Iran said it had activated its air-defence system on the night of June 13 and explosions could be heard on the night of June 13 across Tehran, AFP reporters said. Air raids sirens and explosions rang out across Israel after Prime Minister Benjamin Netanyahu took to the airwaves to warn he expected 'several waves of Iranian attacks' in response. Smoke could later be seen billowing above the skyscrapers in downtown Tel Aviv, an AFP journalist reported, as Iran's Revolutionary Guard said it had attacked dozens of targets in Israel. READ MORE HERE Israel used long-planned subterfuge in Iran attack Israel sent Mossad commandos deep into Iran to destroy Iranian weapons systems during Israel's attack on nuclear and military targets, an Israeli security source said, while another official said Israel used a ploy to suggest the strike was not imminent. The Israeli officials, speaking on condition of anonymity because of the clandestine nature of the operations, described secret and lengthy preparations that went into an attack that sent oil prices sharply higher on fears of regional escalation. Iranian officials who spoke to Reuters shortly before the attack had been dismissive about any imminent action and repeatedly said talk of strikes was just 'psychological pressure' to influence US-Iranian nuclear negotiations that were due on June 15. READ MORE HERE War, trade, Air India crash cast cloud over Paris Air Show War, tariffs and the Air India crash will cast a shadow over the Paris Air Show as the aerospace industry's biggest annual gathering opens on June 16. More than 2,400 companies from 48 countries are showing off their hardware at the week-long event at Le Bourget airfield on the outskirts of Paris. The sales rivalry between Airbus and Boeing usually drives the headlines as the world's top civilian planemakers announce many of their biggest orders at the air show. READ MORE HERE Two men jailed for stealing $7m, 18-carat gold toilet Two men were jailed on June 13 for stealing an 18-carat golden toilet that had been on display as an artwork in an exhibition at Sir Winston Churchill's birthplace. The fully functioning toilet - a work titled America, by Italian artist Maurizio Cattelan - was stolen from the Churchill family seat of Blenheim Palace in southern England, a major tourist attraction and Unesco World Heritage Site. Prosecutor Julian Christopher told jurors at the start of the trial at Oxford Crown Court in February that a group of five men had driven two stolen vehicles through locked wooden gates into the palace grounds before dawn on Sept 14, 2019. READ MORE HERE Zheng beats Raducanu at Queen's after change of shoes Top seed Zheng Qinwen beat home favourite Emma Raducanu 6-2 6-4 to move into the semi-finals at the Queen's Club Championships on June 13, while 37-year-old Tatjana Maria upset 2022 Wimbledon champion Elena Rybakina to reach the last four. In an entertaining battle at the Andy Murray Arena, Zheng showed she could be a worthy contender heading into Wimbledon as she marched into her first semi-final on grass when she converted her fourth match point. Zheng has won singles titles on clay and hardcourts but she is still adapting to grass, with the 22-year-old showing a marked improvement in her match with Raducanu after she changed her shoes midway through a game when the Briton was serving. READ MORE HERE Join ST's Telegram channel and get the latest breaking news delivered to you.
