BlackRock's new funds give turnkey solution to alternative investments

By Toni Weeks

San Diego, Dec. 15 - BlackRock, Inc. registered shares of four new funds that are designed to provide a turnkey solution for the portion of investors' portfolios allocated to a broad range of alternative investments, according to an N-2 filing with the Securiites and Exchange Commission.

The funds are the BlackRock Alternatives Allocation Portfolio, LLC, the BlackRock Alternatives Allocation FB Portfolio LLC, the BlackRock Alternatives Allocation TEI Portfolio LLC and the BlackRock Alternatives Allocation FB TEI Portfolio LLC.

The funds will invest all or substantially all of their investable assets in the BlackRock Alternatives Allocation Master Portfolio LLC. The TEI Fund and the FB TEI Fund do so indirectly, however, by directly investing in a corresponding BlackRock Cayman Island "offshore" fund, which will then invest in the Master Portfolio. The two offshore funds have the same investment objective as the non-offshore funds. The BlackRock Alternatives Allocation Portfolio, Ltd. (Cayman Islands) is the offshore fund for the TEI Fund, and the BlackRock Alternatives Allocation FB Portfolio, Ltd. (Cayman Islands) is the offshore fund for the FB TEI Fund.

The funds seek long-term capital appreciation over a market cycle by providing investors with exposure to a portfolio of alternative investments, which aim for more attractive risk and return characteristics than public market equity investments. The funds are designed to give investors active asset allocation and access to investment managers of alternative strategies that are normally available to institutional investors. The strategies may include hedge fund, private equity fund, real estate, real asset, opportunistic, dynamic real return, diversified alternative exposure and strategic transaction strategies.

The TEI and FB TEI funds will sell units only to U.S. tax-exempt investors and non-U.S. investors.

The funds are being offered on the same terms to investors, but the FB and FB TEI portfolios are only available to investors with fee-based accounts with registered investment advisers or broker-dealers. Thus, only units of the Allocation Fund and TEI Fund will incur a sales load, which has not yet been determined.

The funds will be managed by Nancy Everett, Mark Taborsky and Edward Ng.

Units will be offered monthly. The initial registration was for a token $1 million of units.

BlackRock Advisors, LLC, located in Wilmington, Del., is the funds' investment advisor.

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