Last quarter, BlackRock Inc. pulled a record $221 billion in total customer cash.
Against the background of the mentioned result, the assets of the world’s largest money manager reached an all-time high of $11.5 trillion. It is worth noting that BlackRock is currently striving to become a one-stop shop for stocks, bonds, and, increasingly, private assets.
A statement from the New York-based money manager, published on Friday, October 11, notes that in the third quarter of the current year, investors made financial injections worth $97 billion into exchange-traded funds. Also, in the case of fixed income overall, the corresponding figure was $63 billion.
The total net inflows of BlackRock since the beginning of the current year amounted to $360 billion. This figure exceeded the same result for the full 2022 and 2023.
BlackRock chief executive officer Larry Fink said the company is effectively using its technology, scale, and global footprint to deliver profitable growth.
The financial manager pulled in $5.5 billion of total net flows for alternatives in the third quarter of the current year. It is worth noting that outflows worth $4.2 billion were recorded a year earlier.
The company also reported illiquid alternative assets worth $170 billion.
It is worth noting that BlackRock’s financial performance will continue to grow. After the end of the third quarter of 2024, the company completed the deal to acquire Global Infrastructure Partners. As part of this business agreement, were added $116 billion of private market assets. The cost of the deal was $12.5 billion.
BlackRock’s long-term investment funds took in $160 billion in net flows in the third quarter of 2024. This indicator exceeds the average estimate, which was formed based on the expectations of analysts interviewed by the media. Experts predicted that the mentioned figure would amount to $100 billion.
BlackRock also had $61 billion in net flows to cash management and money-market funds for the third quarter of the current year.
The company’s operating income for July-September of the current year was fixed at $2.1 billion. This indicator showed an increase of 26% compared to the result for the same period in 2023.
BlackRock positions itself as a single place for global clients where they can invest across public and private markets. In the current year, the company has been the beneficiary of a sharp increase in stocks and flow of cash into fixed-income funds and private funds.
BlackRock added $2.4 trillion to its total assets over the past 12 months.
The S&P 500 Index grew by about 5.5% in the third quarter of 2024. Currently, many investors are betting that the Federal Reserve System will not need to sharply cut interest rates in the foreseeable future to avoid the implementation of a recession scenario in the space of the United States economic system. This point of view is also circulating among analysts.
BlackRock is currently in the process of closing the deal to acquire Preqin, a company that specializes in private-market data. The cost of this business agreement is 2.55 billion pounds ($3.3 billion).
BlackRock also declares its intention to catch up in the private lending market, which is on a rapid growth trajectory. The mentioned intention is confirmed by actions such as shaking up the senior executive team of the company’s global private debt business and establishing a direct lending group.
Moreover, BlackRock is currently considering the possibility of acquiring HPS Investment Partners. The media reports that in this case, the cost of a potential deal could be more than $10 billion. At the same time, there is no guarantee that an arrangement will be reached to implement the relevant business agreement.
BlackRock’s adjusted net income per share in the third quarter of 2024 was fixed at $11.46. This indicator showed an increase of 5% compared to the data for the same period last year. It is worth noting that the analysts surveyed by the media expected that adjusted net income per share would be fixed at $10.40.
The company’s revenue for July-September of the current year amounted to $5.2 billion. This indicator increased by 15% compared to the result recorded for the same period in 2023. The company said the corresponding growth was driven by factors such as higher performance fees, organic base fee increase, and the positive impact of markets.
Since the beginning of the current year, the value of BlackRock shares has risen about 18%. It is worth noting that the S&P 500 Index shows a growth rate of 21%.
Last year, BlackRock was ranked 229th in the Fortune 500 list of the largest corporations in the United States. It is worth clarifying that the corresponding rating is based on the revenue indicator. The company has 70 offices in 30 countries, and customers in 100 states. Currently, BlackRock operates the world’s largest Bitcoin fund.
As we have reported earlier, Microsoft and BlackRock to Launch Fund for AI Infrastructure.
