Blackrock: The "new normal" of volatility is prompting clients to turn to the private equity market.

BlackRock stated that as its business in the private equity market rapidly expands, various European institutions are increasingly investing in the private equity market to respond to the "new landscape of intensified volatility". Dominique Rohe, the deputy head of international operations at the world's largest fund management company, revealed that clients from Europe, the Middle East, and Africa contributed approximately 35% of BlackRock's private equity fundraising last year. In absolute terms, fundraising by institutions in this region increased by over 50% compared to 2024, highlighting the rapid acceptance of private equity assets in this market. Rohe pointed out that European pension funds and other institutions are gradually shifting from public stocks and bonds markets to the private equity sector. Part of the reason is to deal with market volatility, as well as to find investments that offer returns unrelated to stock and bond market trends. "European institutions are increasing their allocation to the private equity market because they realize that we are in a new landscape of higher volatility and changing stock-bond correlations," he said.