BlackRock’s assets under management soared to a record $11.48 trillion in the third quarter, helped by robust market inflows. It’s the third consecutive quarter of record growth, driven by the U.S. stock market rally and rising client demand for private market investments.
BlackRock continues to expand its offerings, aiming to integrate public and private markets into a comprehensive investment platform.
Market Rally and Strategic Acquisitions Drive Growth
BlackRock reported a surge in assets under management, rising to $11.48 trillion, up from $9.10 trillion a year earlier and 10.65 trillion in the second quarter. The broad market rally led by U.S. stocks that reversed losses from an August sell-off drove the growth.
– Advertisement –
The MCI’s global stock index rose 6.2% over the quarter, while the S&P 500 climbed 5.4%. In addition, the firm added over $100 billion in private market assets by completing its $12.5 billion acquisition of Global infrastructure partners.
Later this year, BlackRock is set to close a 3.2 billion deal to acquire private markets data provider Preqin. The purchases will greatly enhance BlackRock’s infrastructure investment and private market presence, which are both key future growth areas.
Record Net Inflows and Rising Investor Confidence
A new quarterly record of $221.18 billion was set by BlackRock’s total net inflows during the third quarter. Long-term net inflows reached $160 billion beyond the $100 billion analysts predicted.
A significant portion of these inflows came from ETFs, which saw $97.41 billion, while $62.74 billion was invested in BlackRock’s fixed-income products. Cash management and money-market funds added another $61 billion in net flow, demonstrating strong demand from investors seeking safety amid economic uncertainty.
Strong Earnings and Expanding Global Reach
In the third quarter, BlackRock’s net income was $1.63 billion, worth $10.90 per share, up from $1.60 billion worth $10.66 a year ago.
The firm also reported a higher adjusted net income per share a year ago than analysts expected, to $11.46. Higher performance fees and organic base fee growth contributed to this. In addition, the revenue increased by 15% yearly, rising to $5.2 billion for the quarter.
BlackRock’s shares increased by 18% this year, slightly behind the S&P 500 index’s 21% increase. The firm’s increasing focus on alternative investments, private credit, and infrastructure will allow it to grow.
In recent days, BlackRock revealed plans to tighten up its private debt business, which include a possible multi-billion dollar acquisition of HPS Investment Partners. It also added $2.4 trillion to its assets in the past year, demonstrating broad appeal among global investors.
The demand for such diversified investment strategies is rising, and BlackRock is positioning itself as a platform for investments in the public and private markets. Following current news, BlackRock has sold 182 BTC ($11.33M) and holds 369,640 BTC ($23.02B).
