The firm’s Long-Term Private Capital fund became the largest shareholder of Authentic Brands Group, the company said.

The fund and affiliated entities invested US$875 million, said Andre Bourbonnais, head of Long-Term Private Capital.

The deal values Authentic Brands at more than US$4 billion including debt, according to a person familiar with the matter.

The company is attractive for its track record, free cash flow, persistent return and management team, he said. “ABG really ticked all the boxes,” Bourbonnais said. “We know that the very first transaction is going to be scrutinised. It had to be right in the middle of our strategy.”

Bourbonnais declined to comment on risk factors associated with the investment.

Long-Term Private Capital, which BlackRock unveiled last year, is part of the firm’s effort to build up its business in alternative assets.

As of April, it had secured US$2.75 billion from investors, with US$1.25 billion in hand and US$1.5 billion committed. The New York-based money manager was seeking to raise up to US$12 billion.

Authentic Brands, founded in 2010, develops and markets brands in sectors including entertainment, fashion and lifestyle.

Its portfolio of more than 50 brands includes Elvis Presley, Muhammad Ali, Shaquille O’Neal, active-wear maker Spyder and leather-goods provider Frye Co.

The company is among several that have been considered potential buyers of retailer Barneys New York Inc’s name and trademarks, Bloomberg reported earlier this month.