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Top Blackrock Executive to Exit Company

September 7, 2016

Blackrock Posts 22 Percent Increase In Quarterly ProfitsBlackrock Posts 22 Percent Increase In Quarterly Profits
BlackRock offices in New York City.Photograph by Andrew Burton—Getty Images

The man who since 2008 has run BlackRock (BLK) quasi-consulting arm for governments, regulators, and massive financial firms plans to leave the company next year, according to an internal memo.

Craig Phillips is leaving “to consider a possible transition to the public sector,” according to the memo, which was seen by Reuters.

A Wall Street veteran for decades, Phillips joined the company during the apex of the global financial crisis as the once-marginal bond-focused manager became the largest company of its kind globally and found new heft and demand for its counsel in the years during and since the global financial crisis.

BlackRock marshaled the unit Phillips runs—Financial Markets Advisory, or FMA—in 2008 when the company was tapped by the Federal Reserve Bank of New York to help manage assets and keep the financial system running smoothly.

For instance, it managed troubled assets accumulated by the investment bank Bear Stearns and the insurer American International Group.

In the years since, BlackRock has worked to define FMA as its own business segment and as a showcase for the asset manager’s risk controls and technology.

“FMA has not only become a thriving business, it has contributed to BlackRock’s reputation in a way that truly sets us apart from other asset managers,” said the memo, which was signed by BlackRock Chief Executive Larry Fink and two of his senior deputies, Rob Kapito and Rob Goldstein.

Phillips could not immediately be reached for comment.

Among other responsibilities, Phillips headed the Client Solutions team and was a member of the BlackRock Operating Committee, a senior executive group.

Charles Hatami—the co-head of the Europe, Middle East and Africa segment of BlackRock’s FMA business—will take over Phillips’ role, the memo said.