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Blackstone's unique investment business Blackstone manages investments for big money managers, including pensionfunds and institutional investors, and its $1 trillion in AUM makes it one of the largest asset managers in the world. What sets Blackstone apart from competitors is its investing style.
It ranges from asset owners of various different descriptions who require customized benchmarks for their portfolios, and, in turn, those could be very different, depending on the client type, whether it's an insurance company or a pensionfund or an endowment.
Investmentbanks were not really a known concept in the area where I grew up. So what I mean by that is, first, understand the duration of your funding source. Pensionfunds have quite long-dated capital. So first, understand the duration of that funding source. That’s what I mean by liabilities.
DAMODARAN: Or it could be some unique characteristic, pensionfunds pay no taxes. RITHOLTZ: So have we now gotten to the point where this sort of silliness is over, or are the venture capitalists and investmentbanks that bring these companies public, are they still playing that game? RITHOLTZ: Right. RITHOLTZ: Sure.
Last month, for example, one of our large asset manager clients launched a new ETF linked to an MSCI climate index with a record-breaking ceded investment of $2.4 billion from one of our large pensionfund clients. We also completed large index deals with two of the world's top investmentbanks, which Baer will discuss shortly.
I can’t begin to tell you what it’s like to sit in a room with the Jeremy’s, Professor Jeremy Siegel and I keep calling him Professor Jeremy Schwartz, but he’s just Jeremy Schwartz, chief investment officer of the $75 billion ETF and mutualfund company, WisdomTree. I am just a fan of both of these guys.
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