ZURICH-BlackRock Inc., based in New York City, has agreed to buy Swiss Re Private Equity Partners AG (SRPEP), a European private equity and infrastructure fund of funds that manages investments in excess of $7.5 billion. SRPEP, a subsidiary of locally-based Swiss RE, is responsible for private market fund investments in the areas of private equity, infrastructure, sustainability and real estate.

The fund will be integrated with BlackRock’s existing private equity fund of funds group, BlackRock Private Equity Partners. The move will extend BlackRock’s European and Asian footprint, according to a company statement this morning. “In an environment where yields are low and volatility is high, clients around the world are embracing alternatives which offer higher return potential and the ability to mitigate risk,” said Matthew Botein, managing director and head of BlackRock Alternative Investors in the statement.

Russell Steenberg, a BlackRock managing director, will to lead the combined fund unit. Christian Hinze, CEO of SRPEP, will join BlackRock as deputy head of the combined business. The transaction, the amount undisclosed, is expected to be completed by the third quarter.