BlackRock Hits Record $11.5 Trillion in Assets Under Management

BlackRock has achieved a remarkable milestone, with its assets under management (AUM) soaring to a record $11.5 trillion. This surge is attributed to a combination of market rallies and significant inflows from investors, marking a pivotal moment for the world's largest asset manager.

Key Takeaways

• BlackRock's AUM reached $11.5 trillion, up from $10.6 trillion in the previous quarter.
• The company reported a quarterly net income of $1.63 billion, surpassing analysts' expectations.
• Total net inflows for the quarter hit a record $221 billion, with $160 billion in long-term flows.
• The firm is expanding its focus on private markets, including recent acquisitions.

Record Growth Driven By Market Rally

In the third quarter of 2024, BlackRock's assets under management increased by 8% from the previous quarter, driven by a robust performance in the stock market. The S&P 500 index rose by 5.5%, contributing to the inflow of investor capital into various funds.

The company reported a 15% increase in revenues, totaling $5.2 billion, and an adjusted operating income that rose 26% to $2.1 billion. This growth was fueled by a significant shift in investor behavior, as many sought to reallocate their portfolios in anticipation of potential interest rate cuts by the U.S. Federal Reserve.

Strong Inflows Across Multiple Products

BlackRock's impressive inflows can be broken down as follows:

• Total Net Inflows: $221 billion
  • Long-Term Flows: $160 billion
  • Cash Management Products: $61 billion

The inflows were predominantly directed towards low-cost exchange-traded funds (ETFs) and index products, which have become a staple of BlackRock's investment strategy. In particular, ETFs attracted $97 billion in new investments during the quarter.

Strategic Expansion Into Private Markets

BlackRock is not only focusing on traditional asset management but is also making significant strides into private markets. The recent $12.5 billion acquisition of Global Infrastructure Partners is expected to add over $116 billion in assets, further enhancing BlackRock's capabilities in this sector.

Larry Fink, BlackRock's CEO, emphasized the importance of integrating public and private markets, stating, "Our strategy is ambitious, and our strategy is working." He noted that the blending of these markets is becoming increasingly relevant as clients seek diversified investment opportunities.

Future Outlook

Looking ahead, BlackRock's leadership remains optimistic about continued growth. Fink indicated that the firm expects momentum to build through the end of the year and into 2025. He highlighted the necessity for investors to adjust their risk profiles to meet long-term return objectives.

The company is also preparing for the anticipated closing of its $3.2 billion acquisition of Preqin, a private markets data provider, which is expected to enhance its analytics capabilities and support its growing private market allocations.

In summary, BlackRock's record AUM reflects not only its successful investment strategies but also the evolving landscape of asset management, where the integration of public and private markets is becoming increasingly vital for meeting investor needs.

Sources

• BlackRock’s assets under management surge to record $11.5tn, Financial Times.
• BlackRock's assets hit record $11.5 trillion amid private market push | Reuters, Reuters.
• BlackRock reports record AUM of $11.5 trillion, boosted by all-time high quarterly net inflows | Pensions & Investments, Pensions & Investments.