BlackRock, the world’s largest asset manager, announced a record-breaking $11.5 trillion in assets under management (AUM) for the third consecutive quarter. This growth was driven by strong inflows and the firm’s strategic expansion into private markets, bolstered by favourable market conditions and key acquisitions.
BlackRock’s total net inflows reached a quarterly record of $221 billion, with $160 billion in long-term net inflows, indicating continued investor confidence. A significant portion of these inflows came from exchange-traded funds (ETFs), which attracted $97 billion, while fixed-income products saw $62.7 billion in investments. The surge in asset inflows came as global stock markets rallied, reversing the downturn experienced in August and benefiting from renewed optimism surrounding a soft landing for the U.S. economy.
BlackRock’s CEO, Larry Fink, emphasized the company’s ongoing strategy to integrate public and private markets, positioning itself as a comprehensive platform for investors. “Our strategy is ambitious, and our strategy is working,” Fink said, reflecting on the firm’s ability to attract new capital while diversifying its product offerings. The company has been making significant strides in infrastructure and private markets, areas that Fink predicts will play a vital role in driving economic growth, particularly in the context of growing public deficits.
The firm’s expansion in private markets was highlighted by two significant acquisitions. BlackRockBlackRock completed its $12.5 billion purchase of Global Infrastructure Partners, adding over $100 billion in assets under management. The company is also expected to finalize its $3.2 billion acquisition of Preqin, a private markets data provider, later this year. These moves will significantly enhance BlackRock’s infrastructure and data-driven private investment capabilities.
BlackRock’s Q3 net income rose slightly to $1.63 billion, or $10.90 per share, compared to $1.60 billion, or $10.66 per share, a year ago. The company’s shares have risen by 18% in 2024, though they trail behind the 21% gain of the S&P 500 index.
With the Federal Reserve expected to continue easing interest rates, the inflows into BlackRock’s fixed-income products may increase further, strengthening the firm’s position as a leader in both public and private market investments.
