BlackRock, Inc. · NYSE:BLK
BlackRock — Merger or Acquisition (June 2007)
9 slides from BlackRock's merger presentation, Jun 26, 2007
Slide 1: Acquisition of Quellos Fund of Funds Business
Acquisition of Quellos Fund of Funds Business June 26, 2007 Exhibit 99.2
Slide 2: Forward-Looking Statement
2 Forward-Looking Statement This press release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. F
Slide 3: Transaction Summary
3 Transaction Summary $750 million (75% Cash; 25% Stock) October 1, 2007 Customary closing conditions Up to $375 million (75% cash; 25% stock) based on retention of Quellos’s annualized run rate (4/1/07) management fees through 18 month anniversary of closing Up to $595 million (100% cash) to be int
Slide 4: BlackRock
» BLACKROCK
Slide 5: Slide 5
Slide 6: World's Largest Hedge FoF Managers; Overview of Quellos Fund of Funds Business
4 World’s Largest Hedge FoF Managers Firm 2006 AUM % of Total Pro-Forma (BLK & Quellos) 19.9 3.0% 12 Quellos Capital Mgmt 17.4 2.7% Source: InvestHedge Hedge Fund of Funds rankings; Total fund of funds market AUM from HFR industry report 2007 Overview of Quellos Fund of Funds Business Established in
Slide 7: Strategic Rationale
5 Strategic Rationale Adds attractive absolute return products and enhances ability to deliver innovative solutions to clients Achieves scale in a business with a 37% CAGR since 2000 Institutional demand for alternative investments strategies accelerating Opportunity to leverage BLK’s global capabil
Slide 8: The Combined Fund of Funds Platform
6 The Combined Fund of Funds Platform BlackRock Alternative Advisors First quarter 2007 pro forma combined AUM of $25.4 billion Brings together complementary products managed by proven investment management professionals Bryan White, Quellos CIO, to serve as global head of the business Broader platf
Slide 9: Acquisition Economics
7 Acquisition Economics No assumed synergies Optimization of BLK capital structure with initial cash payment financed with term debt and cash based contingent payments financed from operating cash flow Minimal finite lived (subject to amortization) intangibles 4% - 6% GAAP and cash accretion in 2008