BlackRock is shaking up its management ranks once again, raising geographical reporting lines and promoting a new batch of executives to its "alternatives" business – one of the hottest areas on Wall Street.
The world's largest fund manager has elevated Edwin Conway to run BlackRock Alternatives Investments, according to Tuesday memo by the Financial Times . Mr Conway, who previously led the fund manager's institutional client business group, will be charged with building out the increasingly popular area of alternative investments ̵
The news comes a day after BlackRock announced it raised $ 2.75bn for a private equity fund that initially hoped for $ 12bn. Last month, the company also purchased eFront, an alternative investment technology, for $ 1.3bn.
The move positions Mr Conway as a possible contender to succeed Larry Fink, BlackRock's chief executive. Another contender, Mark Wiseman, will maintain his role as chairman of the alternatives unit.
In January, Fink appointed Mark Wiedman, the former leader of its sprawling iShares business of low-cost exchange traded funds to head of international and corporate strategy.
BlackRock also announced a raft of changes to its client-facing roles. Mark McCombe will take on a new role as chief client officer, with oversight of client businesses in the US and Canada, according to the memo.
Richie Prager, head of trading and liquidity strategies, will retire in July. Executives that reported to Prager will now report to Rob Kapito, president of BlackRock, the memo stated
BlackRock stated the changes were necessary to deal with the challenges facing the investment management industry as a push toward cheap products squeezes revenues. ] "These trends represent the biggest opportunity in decade to differentiate BlackRock – but only if we are willing to be bold and decisive," the memo stated.