Capital Allocators – Inside the Institutional Investment Industry André Bourbonnais – Blackrock Long-Term Private Capital (First Meeting, EP.04)
Jul 22, 2019
André Bourbonnais, Managing Director at Blackrock and head of its Long-Term Private Capital business, shares insights from over thirty years in private markets. He discusses the innovative creation of a permanent capital private equity fund, reshaping traditional investment playbooks. Topics include the importance of trust in partnerships, the re-underwriting process, and strategies for effective deal origination. Bourbonnais emphasizes long-term growth over short-term gains and the challenges of managing a team with shorter career spans than the fund's duration.
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Career Path
- André Bourbonnais's career began in law but transitioned to telecom and then private equity at CDPQ.
- He later led private investments at CPPIB and served as CEO and CIO of PSP Investments.
Move to BlackRock
- Bourbonnais's passion for investing and belief in a gap in long-term strategic investing led him to BlackRock.
- He was drawn to the opportunity to build a new private equity model with permanent capital and a fairer profit distribution.
Traditional PE Playbook
- Traditional private equity often employs short-term value creation strategies, aggressive transformations, and high leverage.
- This approach depends heavily on economic timing and deal focus, not long-term company growth.