BlackRock, the world’s largest asset manager, is taking a page from the private equity industry’s playbook, announcing this month that it will offer a slice of the profits from the firm’s private market funds to a select group of senior executives.
The move could see BlackRock’s top-paid private market executives eventually earning millions in payouts if funds perform exceptionally well over the next decade. (No figures have been disclosed yet, and BlackRock won’t say what its profit-sharing carry program is worth.) With the pay plan, BlackRock aims to lock down talent at the world’s largest asset manager as it wages a fierce war with other firms for top private market players. The bid to keep people in their seats is particularly acute, as the gargantuan company continues its massive strategic push into the alternative asset management gold rush.
