“The notion is that this initial seed capital would be a de-risking mechanism, and it would create the potential for private sector capital to come in at scale,” said Brandon Hall, co-head of BlackRock’s Financial Markets Advisory arm. “Ukraine will have its own organisation to source and syndicate these local investment opportunities.”
Founded in 1988, initially as an enterprise risk management and fixed income institutional asset manager, BlackRock is the world's largest asset manager, with $8.59 trillion in assets under management as of the end of 2022. JPMorgan, meanwhile, was brought in partly for its debt expertise – and has helped Ukraine in this way before, having enabled the country to repay more than $25 billion of sovereign debt since 2010, and to restructure its debt to the tune of $20 billion in 2022.
“The fund is being set up to also give public and private sector investors the opportunity to invest into specific projects and sectors,” said Stefan Weiler, JPMorgan’s head of debt capital markets for central Europe, Middle East and Africa. “There will be different sectoral funds that the fund identified as priorities for Ukraine. The aim is maximise capital participation.”
Sounds like 'seed money' comes from US taxpayers and is NOT attached to any 'profits' that might come from rebuilding. Also, private firms will hire people to write grants to get money indirectly from US taxpayers - and the actual building - will be a profit enterprise by Blackrock etc. I'd like to see the numbers every few months...