BlackRock christens new P-E fund with Authentic Brands stake

Authentic Brands Group Receives Investment from BlackRock LTPC

Authentic Brands Group Receives Investment from BlackRock LTPC

BlackRock Inc's private equity vehicle struck its first deal, backing a company that manages brands including Sports Illustrated, Marilyn Monroe and Juicy Couture.

BlackRock and Authentic Brands were not immediately available for a comment on the report.

"The fund itself put $625 million and we have another $250 million that is coming from related entities and co-investors", André Bourbonnais, head of BlackRock's Long Term Private Capital, told Reuters. The deal values Authentic Brands at more than $4 billion, including debt, based on a person familiar with the matter.

The investment management corporation BlackRock is set to become Authentic's largest shareholder, replacing private-equity firm Leonard Green & Partners as Authentic Brands' largest shareholder, the Journal reported.

Other investors in the NY company include founding investor Leonard Green & Partners, General Atlantic, Lion Capital, Simon Property Group, Brookfield Properties' retail group and Shaquille O'Neal.

FBN's Cheryl Casone on Meredith Corporation selling the intellectual property of the Sports Illustrated brand to Authentic Brands Group.

Authentic Brands Group has more than 50 brands and almost $10 billion in annual global revenue. In a press release, Volcom's CEO said the company was looking forward to being a part of the empire Authentic's CEO Jamie Salter had built.