Asset Management Giant: BlackRock Hits $11.5 Trillion Mark
BlackRock’s assets under management reached a new high for the third consecutive quarter on Friday, driven higher by a sharp increase in the value of its customers’ investments and record-breaking inflows into the company’s exchange-traded funds.
Following positive inflation data, investors’ optimism for a gentle landing for the largest economy in the world grew as the stock markets recovered from their August sell-off and continued to rise in the third quarter.
In the third quarter, BlackRock’s (NYSE:BLK) assets surged to $11.48 trillion, up from $9.10 trillion in the previous year and $10.65 trillion in the second quarter.
The chairman and CEO of Oracle, Larry Fink, stated in a statement, “Our strategy is ambitious, and our strategy is working.”
The New York-based company added over $100 billion in assets to its portfolio last week when it successfully completed the $12.5 billion acquisition of Global Infrastructure Partners. It is anticipated to conclude its $3.2 billion acquisition of Preqin, a provider of private markets data, later this year.
The two agreements are anticipated to increase the largest asset manager in the world’s footprint in two important growth areas: private markets and infrastructure projects.
“We’re already seeing the power of BlackRock and GIP together as we drive access to the enormous investment potential of infrastructure, especially to support AI innovation,” Fink stated. “Our planned acquisition of Preqin will enhance data and risk analytics needed to support growing private markets allocations,” he stated.
In the third quarter, BlackRock reported long-term net inflows of $160 billion. Reaching a quarterly high of $221.18 billion, total net inflows increased from $2.57 billion in the previous year. With $97.41 billion in inflows over the long run, ETFs accounted for the majority. $62.74 billion was invested by customers in BlackRock’s fixed-income products.
Since interest rate hikes increased the attraction of safe-haven assets like cash, asset managers have faced slower inflows. In addition, several investors refrained from making any moves in riskier assets until they had greater clarity on the direction of interest rates.
But asset managers stand to gain as massive amounts of cash sitting on the sidelines are predicted to shift into riskier assets like fixed-income securities when the U.S. Federal Reserve begins its much-awaited easing cycle.
The S&P 500 gained 5.4% and the MSCI index of global equities increased 6.2%, respectively, as benchmarks for the equity market concluded the quarter higher.
BlackRock’s net income increased from $1.60 billion, or $10.66 per share, a year earlier to $1.63 billion, or $10.90 per share, in the three months that ended on September 30.
As of the most recent closing, its shares had increased by almost 18% in 2024, less than the 21% increase of the S&P 500.
FAQs
What were BlackRock’s assets under management (AUM) in the third quarter of 2024?
- In the third quarter, BlackRock’s assets under management increased to $11.48 trillion, rising from $10.65 trillion in the second quarter and $9.10 trillion in the corresponding quarter of the previous year.
What was the reason for the increase in BlackRock’s assets during the third quarter?
- The successful acquisition of Global Infrastructure Partners, record-breaking inflows into its exchange-traded funds (ETFs), and an increase in the value of clients’ investments were the driving forces behind the surge in BlackRock’s assets.
What was BlackRock’s financial performance during the third quarter?
- In the third quarter of 2024, BlackRock’s net income increased to $1.63 billion, or $10.90 per share, compared to $1.60 billion, or $10.66 per share, in the same period a year prior.
