BlackRock Private Funds Face Attempted Exit by Key Investor Arch

A key investor in BlackRock Inc.’s private funds is looking to cut its stakes following disappointing performance and senior executive departures at the US asset manager, according to people familiar with the matter.

Bermuda-based insurance firm Arch Capital Group, which has holdings in at least ten BlackRock funds, is in talks to sell at least $350 million of stakes to secondary funds including Ares Management Corp., one of the people said, asking not to be identified discussing a private matter.