TLDR:
- BlackRock’s assets under management hit a record $11.5 trillion
- $160 billion in client cash flowed into long-term investment funds in Q3
- Total net inflows for 2024 so far are $360 billion, surpassing full-year flows for 2022 and 2023
- BlackRock completed a $12.5 billion acquisition of Global Infrastructure Partners
- The company is expanding into private markets and exploring further acquisitions
BlackRock Inc., the world’s largest money manager, has reported a big milestone in its third-quarter results, with assets under management reaching a record $11.5 trillion. This achievement comes as the company continues to expand its reach across various investment sectors, including private markets.
In the third quarter of 2024, BlackRock saw an influx of $160 billion in client cash to its long-term investment funds. This impressive figure surpassed analysts’ expectations, with the average estimate being around $100 billion. The company’s exchange-traded funds (ETFs) were particularly popular, attracting $97 billion, while fixed-income products brought in $63 billion.
BlackRock’s success in attracting new investments has been consistent throughout the year. The company has reported total net inflows of $360 billion so far in 2024, already exceeding the full-year net flows recorded in both 2022 and 2023. This growth demonstrates the firm’s ability to capitalize on market trends and investor preferences.
Larry Fink, BlackRock’s Chief Executive Officer, attributed the company’s success to its effective use of technology, scale, and global presence. “We are effectively leveraging our technology, scale, and global footprint to deliver profitable growth,” Fink stated in the company’s earnings release.
The firm’s growth strategy extends beyond traditional investment vehicles. On October 1, 2024, BlackRock completed its $12.5 billion acquisition of Global Infrastructure Partners, adding $116 billion in private market assets to its portfolio. This move aligns with the company’s goal of becoming a comprehensive investment solution provider across both public and private markets.
BlackRock saw significant inflows into its cash-management and money-market funds, with $61 billion in net flows during the third quarter. This brings the total net flows across all products to $221 billion for the quarter.
The company’s financial performance reflects its growing asset base. BlackRock reported a 5% year-over-year increase in adjusted net income per share, reaching $11.46. Revenue also saw a substantial boost, rising 15% to $5.2 billion compared to the same period last year.
BlackRock’s expansion plans don’t stop with Global Infrastructure Partners. The firm is in the process of acquiring Preqin, a private-markets data firm, for £2.55 billion ($3.3 billion). Furthermore, BlackRock is reportedly exploring the purchase of HPS Investment Partners, a move that could strengthen its position in the rapidly growing private credit market.
The company’s stock performance has been solid, with shares rising about 18% year-to-date as of the market close on October 10, 2024. However, this growth has slightly trailed the broader market, as the S&P 500 Index has advanced by 21% over the same period.
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