BlackRock’s AUM Hit a New Record High
16 JUL, 2024
By Jose Luis Palmer from RankiaPro Europe
BlackRock, the world's largest asset manager, has reached a new milestone, with its assets under management (AUM) soaring to an all-time high of $10.6 trillion. This remarkable achievement reflects a $1.2 trillion increase compared to the same period last year, showcasing the firm's robust performance and market positioning.
The company's second quarter report highlights significant acceleration in assets, driven by positive market conditions and organic growth. AUM is now 13% higher than it was up to Q2 2023, when it stood at $9.4 trillion.
Strong Inflows and Market Performance
In 2024, BlackRock has generated $140 billion in inflows, with $82 billion of net new money in Q2 alone. The bulk of this growth is attributed to private markets, retail active fixed income, and flows into ETFs. Despite the impressive inflows, the $82 billion figure fell short of analysts' expectations, who had predicted inflows exceeding $112 billion.
Strategic Acquisitions
Larry Fink, BlackRock’s chief executive, emphasized the firm's strategic moves in recent deals with alternative investment groups. Notably, BlackRock acquired Global Infrastructure Partners for $12.5 billion in January and, more recently, private markets data group Preqin for $3.2 billion earlier this month.
BlackRock is executing on the broadest opportunity set we’ve seen in years, including in private markets, Aladdin, and whole portfolio solutions across both ETFs and active. At the same time, we are opening up meaningful new growth markets for our clients and shareholders with our planned acquisitions of Global Infrastructure Partners and Preqin.
Larry Fink, BlackRock’s chief executive
These acquisitions are part of BlackRock's long-term strategy to further integrate private market expertise into its core business. This approach aims to deepen client relationships and diversify revenue generation areas, enhancing the firm's resilience and growth potential.
Revenue Growth
Revenue levels for Q2 were 8% higher year-on-year, driven by positive markets, organic base fee growth, higher performance fees, and increased tech services revenues. This revenue growth underscores BlackRock's ability to capitalize on market opportunities and deliver value to its clients and shareholders.
Conclusion
BlackRock’s record-breaking AUM and strategic acquisitions highlight the firm's robust growth trajectory and its commitment to expanding its market presence. With a strong focus on private markets and innovative solutions, BlackRock is well-positioned to continue its upward momentum and deliver sustained value in the years to come.
