BlackRock Real Assets - NABTU
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Jim Barry, CIO of BlackRock Alternatives & Global Head of Real Assets
Wayne Fitzgerald, COO, US Real Assets Platform
Trevor Boire, Taft-Hartley Relationship Team
BlackRock Real Assets
FOR USE WITH INSTITUTIONAL INVESTORS ONLY – PROPRIETARY AND CONFIDENTIAL
LIMITED DISTRIBUTION
ICBH0619U-876688-1/16
BlackRock: A leading partner and supporter of multiemployer plans
$6 trillion+ global, multi-
asset investment Managing more than
Dedicated Retirement
platform helping $26 billion for over 120
Policy and Investment
multiemployer plans union and
Stewardship resources
achieve the outcomes multiemployer clients
they need
BlackRock Multiemployer Team Dedicated Relationship Management
Steve Bringardner, CFA Trevor Boire
Ross Ramatici, CFA
Director Vice President
Vice President
Head of Taft-Hartley Institutional Client Business
Institutional Client Business
Consultant Relations (Boston)
(San Francisco)
(Chicago) Trevor.Boire@blackrock.com
Ross.Ramatici@blackrock.com
Steve.Bringardner@blackrock.com +1 (617) 357 1235
+1 (415) 670 2129
+1 (312) 395 9334
20+ additional investment professionals supporting the Team across 4 offices (BOS, NYC, CHI, SF)
Source: BlackRock as of 21 June 2019
ICBH0619U-876688-2/16
FOR USE WITH INSTITUTIONAL INVESTORS ONLY – PROPRIETARY AND CONFIDENTIAL 2
BlackRock Real Assets ― Global reach with local expertise
US$47+ billion in client assets with 800+ investors
Strong Presence in United States
New York Frankfurt Hong Kong
• 9 US Offices Greenwich
Paris
Beijing
Pittsburgh Shanghai
Boston Copenhagen
Houston Kuala Tokyo
San Francisco Stockholm Lumpur
London
• 160+ Seattle
Chicago
Employees
Zurich Sydney
Dublin
• $18 billion
Newport
Beach Singapore
Mexico City
Bogota
Clear Underpinned by BlackRock’s
Dedicated teams of sector,
Risk- Defined Investment Access, Process & Fiduciary
region and industry experts
Strategies Approach
Source: BlackRock as of 31 December 2018
ICBH0619U-876688-3/16
FOR USE WITH INSTITUTIONAL INVESTORS ONLY – PROPRIETARY AND CONFIDENTIAL 3
BlackRock US Real Assets Responsible Contractor Policy
Supports a bidding process that is competitive and inclusive of
firms who meet Responsible Contractor standards
Asks BlackRock Real Asset contractors to adopt the same
competitive process
Considers the holistic nature of a project when selecting
contractors (including cost, value and time-to-completion)
Requires commercially reasonable efforts to exclude debarred
contractors
Supports a healthy and profitable business environment that is
governed by ethical industry practices
Source: BlackRock as of 21 June 2019, subject to change.
ICBH0619U-876688-4/16
FOR USE WITH INSTITUTIONAL INVESTORS ONLY – PROPRIETARY AND CONFIDENTIAL 4
BlackRock US Core Property Fund
$2.9 billion core fund providing exposure to income-generating portfolio
US Core Fund investment objectives US Core Fund profile
• Seek attractive and stable income return Number of assets 30
• Acquire and hold high quality, well-leased buildings across Distribution yield 4.0%
four main property types
Occupancy 94.2%
• Focus on US markets and properties with potential to
produce above average rent growth and risk-adjusted Weighted Average Lease Expiry (WALE) 5.8 years
returns based on deep research insight and local market
expertise Loan-to-value (LTV) 20.3%
Average total cost of debt 3.6%
Non-core exposureGlobal Energy & Power Infrastructure Funds
Core-plus fund focused on stable businesses and assets with contracted revenues
Investment Objectives GEPIF Profile
• Focused on equity and equity-linked investments in
mission-critical, long-lived energy and power GEPIF $1.2 billion in commitments, 2009 vintage
infrastructure assets and businesses primarily in I 100% invested across 9 investments
OECD countries
• Invest exclusively in the energy & power infrastructure GEPIF $2.5 billion in commitments, 2014 vintage
sectors on a global basis II 95% invested across 16 investments
• Protection of principal and structuring investments to
generate strong cash yield for our investors are key GEPIF Target fund size, $3.5 billion
tenants of the GEPIF investment strategy III Currently in market
Energy Sector Focus Union Representation in the US and Canada
For over a decade, the GEPIF team has focused on
maintaining positive relationships with unions and
associations.
US$ 2.5 Committed / Invested in the United States
Contracted Power Contracted Midstream billion and Canada
70% Percentage of companies or contractors, by
invested capital, using union labor
Portfolio Companies or Contractors
10
employing union labor / association
Contracted Energy Assets Regulated Utilities
Source: BlackRock, as of March 31, 2019
ICBH0619U-876688-6/16
FOR USE WITH INSTITUTIONAL INVESTORS ONLY – PROPRIETARY AND CONFIDENTIAL 6Global Renewable Power
Fund focused on delivering sustainable, low-correlated returns
Investment Objectives GRP Profile
• Focused on equity investments in renewable power $611 million in commitments, 2012 vintage
and supporting infrastructure globally that are GRP I
100% invested across 16 investments
expected to benefit from long-term, structural
trends
$1.65 billion in commitments, 2016 vintage
• Aims to deliver stable growth potential and GRP II
80% invested across 14 investments
recurring income through de-risking and optimizing
assets with operational and financial improvements Target fund size, $2.5 billion
GRP III
• Deliver positive and measurable impact (ESG) Currently in market
Model Portfolio
Geography Sector Stage Impact (UN SDGs)
Electrified Transport
5%
Energy Storage
LATAM 10%
10% 3%
9%
Transmission
APAC North
10% Brownfield
20% America
35%
35%
40% 25%
Greenfield
Renewable Power 65% 28%
Europe 75%
30%
Source: BlackRock, as of March 31, 2019. The information above is not a prediction of future performance or any assurance that investment opportunities reflecting the
allocations shown will be available to the manager at the time of investment. They are non-representative of all underlying investments made by the manager and it should not be
assumed that the manager will invest according to the allocations shown, or that any future Investments will be successful. The actual composition of the underlying investments
contained in any actual portfolio may vary substantially from the above due to upon a variety of factors, including prevailing market conditions and investment availability.
ICBH0619U-876688-7/16
FOR USE WITH INSTITUTIONAL INVESTORS ONLY – PROPRIETARY AND CONFIDENTIAL 7Biographies
Jim Barry, Managing Director, is the Chief Investment Officer of BlackRock Alternatives Investors (BAI) and Global Head of BlackRock
Real Assets. BAI manages over $175 billion in total assets and client commitments with a team of over 900. As CIO, Mr. Barry is
responsible for providing leadership to the alternatives investment teams in all regions across the Real Estate, Infrastructure, Hedge
Funds, Private Equity and Credit businesses.
BlackRock Real Assets comprises BlackRock's Infrastructure and Real Estate businesses, which have c. 400 professionals across 27
cities globally, and manage $50+ billion globally in equity and debt assets and investor commitments. He is responsible for determining
the overall strategic direction of the Real Assets platform, implementing the platform's investment strategies and leading platform
growth initiatives.
Mr. Barry founded BlackRock's Infrastructure business in 2011 upon joining the firm. In 2016, he took responsibility for BlackRock's
Global Real Estate Investment business by integrating both Infrastructure and Real Estate to create one cohesive, scalable Real Asset
operating platform with a range of client orientated strategies defined by their risk positioning. Under his leadership this business has
grown from $34 billion to $50+ billion globally in assets.
Prior to joining BlackRock, Mr. Barry spent 11 years as the CEO of NTR plc, where he led the transformation of NTR from its origins as an
Irish toll road developer into a leading international developer, owner and operator of a portfolio of diverse infrastructure businesses.
Prior to joining NTR, Mr. Barry worked at Bain and Company and in the investment banking division of Morgan Stanley.
Mr. Barry earned a BComm from University College Cork in 1989 and an MBA from Harvard Business School in 1994.
Wayne M. Fitzgerald II, Managing Director, is the Chief Operating Officer for the US Real Assets Platform. Mr. Fitzgerald is primarily
responsible for the day-to-day operations of the Global Real Estate Debt, Global Real Estate Securities and US Real Estate Private Equity
businesses and supporting platform strategy and product development. Mr. Fitzgerald is also responsible for global Real Asset
technology initiatives.
Prior to his current role, Mr. Fitzgerald served as a senior advisor and real estate specialist within BlackRock Solutions' Financial Markets
Advisory Group. Mr. Fitzgerald also managed the development of BlackRock Solutions' proprietary commercial real estate loan loss
modeling platform (SPEAR). Mr. Fitzgerald's service with the firm dates back to 2006, including his years with Helix Financial Group LLC
which was acquired by BlackRock in 2010. Prior to joining the firm, Mr. Fitzgerald was a Vice President at Wachovia Capital Markets LLC
where he managed the issuance of approximately $19 billion of commercial mortgage backed securities. Prior to this, Mr. Fitzgerald
practiced law with Cadwalader, Wickersham & Taft; Parker, Poe, Adams & Bernstein; and Wyatt Early Harris & Wheeler.
Mr. Fitzgerald co-authored "Commercial Mortgage-Backed Securities" (The Handbook of Fixed Income Securities, 8th Edition), which
was published in 2012. Mr. Fitzgerald earned a BA degree in history from the University of North Carolina at Charlotte and a JD from the
University of North Carolina School of Law.
Source: BlackRock as of 21 June 2019.
ICBH0619U-876688-8/16
FOR USE WITH INSTITUTIONAL INVESTORS ONLY – PROPRIETARY AND CONFIDENTIAL 8BlackRock US Core Property Fund disclosure
AN INVESTMENT IN THE BLK US CORE PROPERTY FUND OR ANY OF ITS RELATED FUNDS (COLLECTIVELY REFERRED TO AS THE “FUND”) IS SPECULATIVE AND INCLUDES A
HIGH DEGREE OF RISK, INCLUDING THE RISK OF A TOTAL LOSS OF CAPITAL. THE FUND IS ILLIQUID, SUBJECT TO SIGNIFICANT RESTRICTIONS ON TRANSFER AND
INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE RISKS ASSOCIATED WITH HOLDING SUCH INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.
ALL INVESTORS SHOULD CAREFULLY REVIEW THE CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM AND OTHER OFFERING DOCUMENTS FOR THE FUND PRIOR TO
MAKING AN INVESTMENT DECISION. ANY INVESTMENT DECISION WITH RESPECT TO THE FUND MUST BE MADE SOLELY ON THE DEFINITIVE AND FINAL VERSION OF THE
FUND’S PRIVATE PLACEMENT MEMORANDUM, THE GOVERNING AGREEMENTS, SUBSCRIPTION AGREEMENTS AND OTHER ANCILLARY DOCUMENTS.
Effective December 1, 2016, BlackRock Granite Property Fund underwent a restructuring effectuated by the merger of a wholly-owned subsidiary of BlackRock US Core Property
Fund, L.P. (the “Fund”) with and into BlackRock Granite Property Fund, Inc. (the “REIT”) pursuant to which all of REIT’s common stock became owned by the Fund. The financial
results of the Fund are presented as a continuation of the performance of the REIT, as its predecessor, for the period prior to December 1, 2016. The REIT (now BlackRock US Core
Property Fund, Inc.) is a Maryland corporation incorporated on May 16, 2006 that has elected to be taxed, and intends to continue to qualify, as a real estate investment trust for
U.S. federal income tax purposes.
These materials are neither an offer to sell nor a solicitation of any offer to buy shares in the Fund. You may not rely upon these materials in evaluating the merits of investing in
the Fund. Any BlackRock funds mentioned in this material are only offered on a private placement basis and potential investors are required to inform themselves of, and to
observe, any legal restrictions on their involvement in the offering. No sale of Fund interests will be made in any jurisdiction in which the offer, solicitation, or sale is not authorized
or to any person to whom it is unlawful to make the offer, solicitation or sale. If any such offer of Fund interests is made, it will be made pursuant to the current relevant offering
documents that contain material information not contained herein and to which prospective investors will be referred. Any decision to invest in the Fund should be made solely on
reliance upon the offering documents of the Fund.
This presentation is strictly confidential and may not be reproduced for, disclosed to or otherwise provided in any format to any other person or entity (other than the Reader’s
professional advisors bound by obligations of confidentiality to the Reader) without the prior written consent of BlackRock, Inc. or its applicable advisory subsidiaries (collectively,
“BlackRock”). Notwithstanding anything to the contrary herein, each Reader (and each employee, representative or other agent of such Reader) may disclose to any and all
persons, without limitation of any kind, the tax treatment and tax structure of (i) the Fund and (ii) any of the Fund’s transactions described herein, and all materials of any kind
(including opinions or other tax analyses) that are provided to the Reader relating to such tax treatment and tax structure. This material has not been approved by the SEC, FINRA
or any other regulatory authority or securities. This presentation is for informational purposes only and not to be relied upon as investment, legal, tax, or financial advice. The
Reader must consult with his or her independent professional advisors as to the legal, tax, financial or other matters relevant to the suitability of an investment in the Fund.
HISTORICAL PERFORMANCE INFORMATION DEPICTED HEREIN IS NOT INDICATIVE OF FUTURE PERFORMANCE OR INVESTMENT RETURNS, AND ACTUAL EVENTS OR
CONDITIONS MAY NOT BE CONSISTENT WITH, AND MAY DIFFER MATERIALLY FROM, THOSE DEPICTED. Any information provided herein relating to the Fund’s performance
has been provided by BlackRock and is unaudited and subject to change. BlackRock makes no representations or warranties as to the accuracy or completeness of such estimated
performance figures, and further no such estimated performance figures shall be relied upon as a promise by, or representation by, BlackRock whether as to past or future
performance results.
Any reference herein to any security and/or a particular issuer shall not constitute a recommendation to buy or sell, offer to buy, offer to sell, or a solicitation of an offer to buy or
sell any such securities issued by such issuer.
None of the shares of the Fund has been or will be registered under the United States Securities Act of 1933, as amended, (“33 Act”) and the shares of the Fund may not be offered
or sold, directly or indirectly, in the United States or to any U.S. Person, as such terms are defined in the Confidential Memorandum, without an applicable exemption from
registration under the 33 Act. The Fund has not been registered under the United States Investment Company Act of 1940, as amended. Neither the United States Securities and
Exchange Commission, nor any state securities administration has passed on, or endorsed, the merits of the shares of the Fund. Any representation to the contrary is unlawful.
ICBH0619U-876688-9/16
FOR USE WITH INSTITUTIONAL INVESTORS ONLY – PROPRIETARY AND CONFIDENTIAL 9BlackRock US Core Property Fund risk
Risks associated with an investment in the Fund include, but are not limited to, the following: (i) the Fund’s investments may generate losses or suffer losses in value, (ii) the Fund
may borrow funds for purposes of leveraging its portfolio, which may magnify the effect of portfolio losses, (iii) the general real estate market has experienced and may continue to
experience volatility, (iv) the Fund’s investments are illiquid which may impede the Fund’s ability to respond to adverse changes in performance, (v) withdrawals of interests in the
Fund may be restricted, there is no secondary market for the interests in the Fund and none is expected to develop, (vi) the fees and expenses of the Fund may offset any profits of
the Fund, (vii) uncontrollable factors including adverse economic conditions may impact occupancy levels and lease rates of the Fund’s investments, (viii) the Fund is not subject
to the same regulatory requirements as mutual funds, (ix) bankruptcy or inability of tenants to pay rent may result in losses, and (x) lack of diversification of investments outside of
real estate. Investors should also be aware that as a global provider of investment management, risk management and advisory services to institutional and retail clients,
BlackRock engages in a broad spectrum of activities. Although the relationships and activities of BlackRock may help offer attractive opportunities and service to the Fund, such
relationships and activities create certain inherent conflicts of interest between BlackRock and the Fund and/or the Fund’s investors. Prior to making any investment decisions,
the applicable fiduciaries of prospective investors subject to the Employee Retirement Income Security Act of 1974, as well as other US and non-US benefit plan investors and
plans subject to Section 4975 of the Internal Revenue Code of 1986, should take into account, among other considerations, whether such fiduciary has the authority to make an
investment in the Funds, whether the investment may constitute a prohibited transaction or give rise to prohibited transactions (though the Fund intends to operate as a VCOC or
REOC), the diversification by type of asset and the general fiduciary standards of prudence and diversification.
In addition to the above, further risks associated with instruments utilized by the Fund include, but are not limited to, the following:
i.) Uninsured Loss. There are certain types and magnitudes of losses that are not generally insured because it is not economically feasible to insure against such losses, such as
losses due to riots or acts of war, or other losses that may not be insured or may be insured subject to certain limitations, including large deductibles or co-payments, such as
losses due to floods or seismic activity.
ii.) Hedging and Counterparty Risk. Interest rate hedging may fail to protect or adversely affect the Fund including due to the risk of counterparty default.
iii.) Joint Venture Risks. Certain of the Fund’s investments are through joint ventures with third parties. Joint venture investments involve the risks that the joint venturers might
become bankrupt (in which event the Fund could remain liable for the obligations of such joint venture), that such joint venturers might at any time have economic or other
business interests or goals which are inconsistent with the business interests or goals of the Fund, and that such joint venturers may be in a position to take action contrary to the
Fund’s instructions or requests or contrary to the Fund’s policies or objectives.
iv.) Reliance on BlackRock Realty. An investor will not be able to evaluate the nature of, and the terms on which the Fund will acquire additional assets when determining whether
to invest in the Fund. Determinations to invest must therefore be made primarily on the basis of an investor's appraisal of existing assets, the proposed objectives and operations
of Fund, and the capabilities of BlackRock Realty.
v.) Valuation Risk. Valuations and appraisals used to determine the value of interests in the Fund may not accurately reflect the values for which assets could be sold between a
willing buyer and seller as of the date for which they will be used.
vi.) REIT Status. Failure of Blackrock US Core Property Fund, Inc. (formerly BlackRock Granite Property Fund, Inc.), a wholly-owned subsidiary of the Fund, to maintain its status as
a REIT would result in higher taxes and reduced cash available for limited partners in the Fund.
This disclosure is subject to the more complete summary of certain risks associated with an investment in the Fund which is included in the Fund’s Confidential Private Placement
Memorandum.
ICBH0619U-876688-10/16
FOR USE WITH INSTITUTIONAL INVESTORS ONLY – PROPRIETARY AND CONFIDENTIAL 10BlackRock US Core Property Fund disclosure
Performance comparison
A benchmark for this presentation is the National Council of Real Estate Investment Fiduciaries (“NCREIF”) Property Index (the “NPI” or the “Index”). NFI-ODCE, has been taken
from published sources. The NFI-ODCE Index is a capitalization-weighted, gross of fees, time-weighted return Index with an inception date of 1/1/1978. Published reports may
also contain equal-weighted and net of fees information. Open-end Funds are generally defined as infinite-life vehicles consisting of multiple investors who have the ability to
enter or exit the fund on a periodic basis, subject to contribution and/or redemption requests, thereby providing a degree of potential investment liquidity.
The term Diversified Core Equity style typically reflects lower risk investment strategies utilizing low leverage and generally represented by equity ownership positions in stable US
operating properties. NFI-ODCE includes at least an 80% investment in various real estate property types and includes cash, leverage and other non-property related assets and
liabilities, income, and expenses. The calculation methodology for the index is consistent with the fund returns shown.
The NCREIF Fund Index (NFI) Open End Diversified Core Equity (ODCE Index (“NFI-ODCE”) is a capitalization weighted, gross of fees, time-weighted return Index. Published
reports may also contain equal-weighted and net of fees information. Open end funds are generally defined as infinite-life vehicles consisting of multiple investors who have the
ability to enter or exit the fund on a periodic basis, subject to contribution and/or redemption requests, thereby providing a degree of potential investment liquidity. The term
Diversified Core Equity style typically reflects lower risk investment strategies utilizing low leverage and generally represented by equity ownership positions in stable US operating
properties. NFI-ODCE Index includes at least an 80% investment in various real estate property types and includes cash, leverage and other non-property related assets and
liabilities, income, and expenses.
A comparison index for this presentation is the National Council of Real Estate Investment Fiduciaries (“NCREIF”) Property Index (the “Index”). The Index has been taken from
published sources. The Index is based on the unleveraged performance of stabilized, income-producing US apartment, industrial, office, R&D, hotel and retail properties owned by
tax-exempt entities reporting to NCREIF.
Factors that may affect the validity of a comparison of a portfolio’s returns with the Index include leverage employed by the portfolio, portfolio-level income and expenses and
differences between the property type and geographic composition of the portfolio and the Index. The Index excludes cash and other non-property related assets and liabilities,
income and expenses.
The calculation methodology is not consistent with the presentation. Fund returns presented are calculated gross and net, i.e., before and after the deduction of asset
management fees. Both gross and net returns are calculated net of financing fees, as such fees are reflected in net unrealized loss. Returns reflect the effects of third party
leverage and include cash and cash equivalents and related interest income. Portfolio returns calculations are based on the fund’s net asset value and time-weight the
contributions and distributions going into and out of the fund. The benchmark calculation is based on operating property values, gross of leverage and time weighted cash flows
(i.e., capital expenditures and partial sales) into and out of the properties during the period. Benchmark calculations do not include leverage, portfolio cash, expenses or fees.
The NCREIF Subindices are based on the unleveraged performance of stabilized, income-producing US properties owned by tax-exempt entities reporting to NCREIF. The Indices
exclude cash and other non-property related assets and liabilities, income and expenses.
ICBH0619U-876688-11/16
FOR USE WITH INSTITUTIONAL INVESTORS ONLY – PROPRIETARY AND CONFIDENTIAL 11Important notes
You are cautioned not to place undue reliance on any of these forward-looking statements, which reflect our views as of the date of this presentation. Our ability to predict results
or the actual effect of future plans or strategies is inherently uncertain. Although we believe that the expectations reflected in such forward-looking statements are based on
reasonable assumptions, our actual results and performance could differ materially from those set forth in the forward-looking statements and we cannot guarantee future results
or the successful implementation of the strategies discussed in this presentation. We are under no duty to update any of the forward-looking statements after the date of this
presentation to conform these statements to actual results.
Properties are valued quarterly. At least once annually the valuation will be based on an independently performed appraisal. Independently performed appraisals are made in
accordance with the currently published uniform standards of professional appraisal practice and BlackRock Realty’s current appraisal policies by appraisers that are independent
organizations, with partners or employees who are members of the Appraisal Institute. Valuations performed by BlackRock Realty are based on the most recently prepared
appraisals reflecting changes at the market and property level. For more information please refer to the Fund’s offering documents
Certain information contained herein has been obtained from published sources, agencies of the U.S. government and from third-parties, including without limitation, market
forecasts, market research, publicly available information and industry publications. In addition, certain information contained herein has been obtained from companies in which
investments have been made by entities affiliated with BlackRock. Although such information is believed to be reliable for the purposes used herein, none of the Fund or BlackRock
assumes any responsibility for the accuracy or completeness of such information. Similarly, forecasts or market research, while believed to be reliable, have not been
independently verified and none of the Fund or BlackRock makes any representation as to the accuracy or completeness of such information. All information is provided on an “AS
IS” basis only. By using this information, the Reader agrees that BlackRock shall not have any liability for the accuracy of the information contained herein, for delays or omissions
therein, or for any results based on your use of the information which are not consistent with your objectives. WITHOUT LIMITING THE FOREGOING DISCLAIMERS, THE
INFORMATION PROVIDED HEREIN IS NOT GUARANTEED TO BE ACCURATE OR COMPLETE, NOR DOES BLACKROCK TAKE RESPONSIBILITY FOR IT. THE INFORMATION
CONTAINED HEREIN HAS NOT BEEN AUDITED AND BLACKROCK DOES NOT GUARANTEE ITS SUITABILITY FOR ANY PURPOSE. ALL INFORMATION IS SUBJECT TO CHANGE
AND/OR WITHDRAWAL AT ANY TIME WITHOUT NOTICE. Certain information included herein may refer to published indices. Indices that purport to present performance of
certain markets or the performance of certain asset classes or asset managers may actually present performance that materially differs from the overall performance of such
markets, asset classes or asset managers due to issues of selection and survivorship bias.
Certain information contained in this presentation constitutes “forward-looking statements,” which can be identified by the use of forward looking terminology such as “may,”
“will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue,” “target,” “believe,” the negatives thereof, other variations thereon or comparable terminology. Due
to various risks and uncertainties inherent in the capital markets or otherwise facing the asset management industry, actual events or results or the actual performance of the
Fund may differ materially from those reflected or contemplated in such forward-looking statements
The information contained in this presentation is proprietary and confidential and may contain commercial or financial information, trade secrets and/or intellectual property of
BlackRock. If this information is provided to an entity or agency that has, or is subject to, open records, open meetings, “freedom of information”, “sunshine” laws, rules,
regulations or policies or similar or related laws, rules, regulations or policies that require, do or may permit disclosure of any portion of this information to any other person or
entity to which it was provided by BlackRock (collectively, “Disclosure Laws”), BlackRock hereby asserts any and all available exemption, exception, procedures, rights to prior
consultation or other protection from disclosure which may be available to it under applicable Disclosure Laws
BlackRock Investments, LLC, member FINRA.
BlackRock® is a registered trademark of BlackRock, Inc. All other trademarks are the property of their respective owners.
© 2019 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, iSHARES, SO WHAT DO I DO WITH MY MONEY, INVESTING FOR A NEW WORLD, and BUILT
FOR THESE TIMES are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their
respective owners.
ICBH0619U-876688-12/16
FOR USE WITH INSTITUTIONAL INVESTORS ONLY – PROPRIETARY AND CONFIDENTIAL 12Risks
Capital at risk. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the
initial investment amount cannot be guaranteed.
Past Performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a
product or strategy.
You may not get back the amount originally invested. Changes in the rates of exchange between currencies may cause the value of investments
to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall
suddenly and
substantially. Levels and basis of taxation may change from time to time.
Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
Infrastructure Funds
Infrastructure Funds invest exclusively or almost exclusively in equity or debt, or equity or debt related instruments, linked to infrastructure assets.
Therefore, the performance of an Infrastructure Fund may be materially and adversely affected by risks associated with the related infrastructure
assets including construction and operator risks, environmental risks, legal and regulatory risks; political or social instability; governmental and
regional political risks; sector specific risks; interest rate changes; currency risks; and other risks and factors which may or will impact
infrastructure and as a result may substantially affect a fund’s aggregate return. Investments in Infrastructure assets are typically illiquid and
investors seeking to redeem their holdings in an Infrastructure Fund can experience significant delays and fluctuations in value.
Liquidity Risk
The Fund’s investments may have low liquidity which often causes the value of these investments to be less predictable. In extreme cases, the
Fund may not be able to realise the investment at the latest market price or at a price considered fair.
The Fund’s investments may have low liquidity which often causes the value of these investments to be less predictable. In extreme cases, the
Fund may not be able to realise the investment at the latest market price
Valuation risk
Given the uncertainty inherent in the valuation of assets that lack a readily ascertainable market value, the value of such assets as reflected in the
Fund’s net asset value may differ materially from the prices at which the Fund would be able to liquidate such assets.
Given the uncertainty inherent in the valuation of assets that lack a readily ascertainable market value, the value of such assets as reflected in the
Fund’s net asset value may differ materially from the prices at which the Fund would be able to liquidate such assets.
Lack of available investments
There can be no assurance that the Fund will be able to locate, attain and exit investments that satisfy its investment objectives, or that the Fund
will be able to fully invest its committed capital.
Redemption risk
The Fund’s investments are generally illiquid and therefore an investment in the Fund is intended for long-term investors able to accept the risks
associated with an illiquid investment and who are able to commit their funds for the duration of the Fund Redemptions, to the extent they are
permitted, may be limited, postponed or altogether suspended in certain circumstances.
ICBH0619U-876688-13/16
FOR USE WITH INSTITUTIONAL INVESTORS ONLY – PROPRIETARY AND CONFIDENTIAL 13Important Information
This presentation is strictly confidential and may not be reproduced for, disclosed to or otherwise provided in any format to any other person or
entity (other than the recipient) without the prior written consent of BlackRock, Inc. or its applicable advisory subsidiaries (collectively,
“BlackRock”). This material has not been approved by the SEC, FINRA or any other regulatory authority or securities. This presentation is for
informational purposes only and not to be relied upon as investment, legal, tax, or financial advice. The Reader must consult with his or her
independent professional advisors as to the legal, tax, financial or other matters relevant to the suitability of any investment.
Certain information contained in this presentation constitutes “forward-looking statements,” which can be identified by the use of forward looking
terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue,” “target,” “believe,” the negatives
thereof, other variations thereon or comparable terminology. Such information may include, among other things, projections, forecasts, and
proposed or expected portfolio composition. No representation is made that every assumption made in achieving, calculating or presenting the
forward-looking information has been considered or stated in preparing this material. Any changes to assumptions that may have been made in
preparing this material could have a material impact on the projections that are presented herein.
Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are
being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do
not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy.
This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has
not been prepared in connection with any such offer.
Securities offered in the US through BlackRock Investments, LLC. © 2018 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK
SOLUTIONS, iSHARES, BUILD ON BLACKROCK, SO WHAT DO I DO WITH MY MONEY and the stylized i logo are registered and unregistered
trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.
For Permitted Clients only in Canada: In Canada, this material is intended for permitted clients only, is for educational purposes only, does not
constitute investment advice and should not be construed as a solicitation or offering of units of any fund or other security in any jurisdiction. Any
investment decision should be done pursuant to the offering document and subscription agreement of the fund.
© 2019 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, iSHARES, BUILD ON BLACKROCK, SO WHAT DO I DO WITH
MY MONEY and the stylized i logo are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and
elsewhere. All other trademarks are those of their respective owners
ICBH0619U-876688-14/16
FOR USE WITH INSTITUTIONAL INVESTORS ONLY – PROPRIETARY AND CONFIDENTIAL 14Important Information
Risks associated with an investment in the Strategy include, but are not limited to, the following: Operational and technical risk. Infrastructure assets may be
subject to operating and technical risks, including the risk of mechanical breakdown, spare parts shortages, failure to perform according to design
specifications, labor strikes and disputes, work stoppages and other interruptions and other unanticipated events which adversely affect operations. While the
strategy may seek investments in which creditworthy and appropriately insured third parties bear much of these risks, there can be no assurance that any or all
such risks will be mitigated or that such third parties will perform their obligations or that insurance will be available on commercially reasonable terms. An
operating failure of the kind described above may result in a material adverse effect on the strategy’s investment in the relevant project. Environmental
risks. Investments may be affected by deleterious substances and other environmental problems. The strategy may therefore be subject to all the risks arising
under applicable environmental laws and regulations from the acquisition, holding and disposal of contaminated projects, including loss and reduced returns
resulting from environmental claims, related occupational safety issues and claims and the performance of requisite clean-up work. An owner of an
infrastructure asset may be liable for past and future damages caused by environmental pollutants located on or emitted from or otherwise attributable to the
asset, as well as for the costs of remediation and in some circumstances, fines or other penalties. Insurance risks. Investments are generally expected to
maintain insurance in accordance with industry practices, including liability and fire and extended coverage, on commercially reasonable terms. However,
there are certain types of losses such as acts of war, terrorism or other unforeseeable catastrophic events, which now or in the future may be uninsurable at all
or upon acceptable terms. Lack of market economy. Businesses in the lesser developed countries where the strategy may invest may only have a very recent
history of operating within a market-oriented economy or under the pressures imposed by developing countries generally. In general, relative to companies
operating in developed economies, companies in these lesser developed countries are characterized by a lack of (1) experienced management, (2) modern
technology and (3) a sufficient capital base with which to develop and expand their operations. Ability to enforce legal rights. The strategy may invest in
countries with judicial systems of varying effectiveness. As a consequence, the strategy may have difficulty in successfully pursuing claims in the courts of
certain countries. Regulatory risk. The issuers or instruments in which the underlying funds invest may be or may become subject to unduly burdensome and
restrictive regulation affecting commercial freedom and this in turn may have an adverse impact on the value of the Fund Investments.
Certain information contained herein has been obtained from published sources, agencies of the U.S. government and from third-parties, including without
limitation, market forecasts, internal and external surveys, market research, publicly available information and industry publications. In addition, certain
information contained herein has been obtained from companies in which investments have been made by entities affiliated with BlackRock. Although such
information is believed to be reliable for the purposes used herein, BlackRock assumes no responsibility for the accuracy or completeness of such information.
Similarly, internal surveys, forecasts or market research, while believed to be reliable, have not been independently verified and BlackRock makes no
representation as to the accuracy or completeness of such information. All information is provided on an “AS IS” basis only. By using this information, the
Reader agrees that BlackRock shall not have any liability for the accuracy of the information contained herein, for delays or omissions therein, or for any results
based on your use of the information which are not consistent with your objectives. WITHOUT LIMITING THE FOREGOING DISCLAIMERS, THE INFORMATION
PROVIDED HEREIN IS NOT GUARANTEED TO BE ACCURATE OR COMPLETE, NOR DOES BLACKROCK TAKE RESPONSIBILITY FOR IT. THE INFORMATION
CONTAINED HEREIN HAS NOT BEEN AUDITED AND BLACKROCK DOES NOT GUARANTEE ITS SUITABILITY FOR ANY PURPOSE. ALL INFORMATION IS
SUBJECT TO CHANGE AND/OR WITHDRAWAL AT ANY TIME WITHOUT NOTICE. Certain information included herein may refer to published indices. Indices
that purport to present performance of certain markets or the performance of certain asset classes or asset managers may actually present performance that
materially differs from the overall performance of such markets, asset classes or asset managers due to issues of selection and survivorship bias. Past
performance is not a reliable indicator of current or future result. Tax treatment depends on the individual circumstances of each client and may be subject to
change in the future.
Certain information contained in this presentation constitutes “forward-looking statements,” which can be identified by the use of forward looking terminology
such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue,” “target,” “believe,” the negatives thereof, other variations thereon
or comparable terminology. Due to various risks and uncertainties inherent in the capital markets or otherwise facing the asset management industry, actual
events or results or the actual performance of the Fund may differ materially from those reflected or contemplated in such forward-looking statements
The opinions expressed are as of March 2019 and may change as subsequent conditions vary. The information and opinions contained in this material are
derived from proprietary and non-proprietary sources deemed by BlackRock to be reliable, are not necessarily all inclusive and are not guaranteed as to
accuracy. There is no guarantee that any forecasts made will come to pass. Any investments named within this material may not necessarily be held in any
accounts managed by BlackRock. Reliance upon information in this material is at the sole discretion of the reader.
ICBH0619U-876688-15/16
FOR USE WITH INSTITUTIONAL INVESTORS ONLY – PROPRIETARY AND CONFIDENTIAL 15Important Information (Continued)
This presentation is strictly confidential and may not be reproduced for, disclosed to or otherwise provided in any format to any other person or entity (other
than the Reader’s professional advisors bound by obligations of confidentiality to the Reader) without the prior written consent of BlackRock, Inc. or its
applicable advisory subsidiaries (collectively, “BlackRock”). Notwithstanding anything to the contrary herein, each Reader (and each employee, representative
or other agent of such Reader) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of (i) the Fund and (ii) any
of the Fund’s transactions described herein, and all materials of any kind (including opinions or other tax analyses) that are provided to the Reader relating to
such tax treatment and tax structure. This material has not been approved by the SEC, FINRA or any other regulatory authority or securities. This presentation is
for informational purposes only and not to be relied upon as investment, legal, tax, or financial advice. The Reader must consult with his or her independent
professional advisors as to the legal, tax, financial or other matters relevant to the suitability of an investment in the Fund.
HISTORICAL PERFORMANCE INFORMATION DEPICTED HEREIN IS NOT INDICATIVE OF FUTURE PERFORMANCE OR INVESTMENT RETURNS, AND ACTUAL
EVENTS OR CONDITIONS MAY NOT BE CONSISTENT WITH, AND MAY DIFFER MATERIALLY FROM, THOSE DEPICTED. Any information provided herein
relating to the Fund’s performance has been provided by BlackRock and is unaudited and subject to change. BlackRock makes no representations or warranties
as to the accuracy or completeness of such estimated performance figures, and further no such estimated performance figures shall be relied upon as a
promise by, or representation by, BlackRock whether as to past or future performance results.
None of the shares of the Fund has been or will be registered under the United States Securities Act of 1933, as amended, (“33 Act”) and the shares of the Fund
may not be offered or sold, directly or indirectly, in the United States or to any U.S. Person, as such terms are defined in the Confidential Memorandum, without
an applicable exemption from registration under the 33 Act. The Fund has not been registered under the United States Investment Company Act of 1940, as
amended. Neither the United States Securities and Exchange Commission, nor any state securities administration has passed on, or endorsed, the merits of the
shares of the Fund. Any representation to the contrary is unlawful.
This material is provided to the recipient on a strictly confidential basis and is intended for informational or educational purposes only. Nothing in this
document, directly or indirectly, represents to you that BlackRock will provide, or is providing BlackRock products or services to the recipient or is making
available, inviting, or offering for subscription or purchase, or invitation to subscribe for or purchase, or sale, of any BlackRock fund, or interests therein. This
material neither constitutes an offer to enter into an investment agreement with the recipient of this document nor is it an invitation to respond to it by making
an offer to enter into an investment agreement. This document and any other documents and materials, in connection with the offer or sale, or invitation for
subscription or purchase of BlackRock products, may only be circulated or distributed by an entity as permitted by applicable laws and regulations. BlackRock
does not have any intention to solicit you for any investment or subscription in the fund and any such solicitation or marketing will be made by an entity
permitted by applicable laws and regulations.
No approval of, or recognition by, any relevant regulatory authority, has been, or will be, obtained for the making available, invitation, or offer for subscription or
purchase, or invitation to subscribe for or purchase, or the sale, of BlackRock funds to any persons in any country in Southeast Asia. This document is not
intended to be a prospectus, and has not been registered as a prospectus with any regulatory body in any country in Southeast Asia. Accordingly, this document
and any other documents and materials, in connection with the offer or sale, or invitation for subscription or purchase of, BlackRock products, may not be
circulated or distributed, nor may any BlackRock fund be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or
indirectly, to the public or any members of the public in Southeast Asia which may trigger public offering requirements and will violate the securities laws or any
other relevant laws of such jurisdiction(s). Any reference herein to any security and/or a particular issuer shall not constitute a recommendation to buy or sell,
offer to buy, offer to sell, or a solicitation of an offer to buy or sell any such securities issued by such issuer.
The distribution of the information contained herein may be restricted by law, and any person who accesses it is required to comply with any such restrictions.
By reading this information you confirm that you are aware of the laws in your own jurisdiction regarding the provision and sale of funds and related financial
services or products, and you warrant and represent that you will not pass on or utilize the information contained herein in a manner that could constitute a
breach of such laws by BlackRock, its affiliates, or any other person.
ICBH0619U-876688-16/16
FOR USE WITH INSTITUTIONAL INVESTORS ONLY – PROPRIETARY AND CONFIDENTIAL 16You can also read
