BlackRock assets hit record $11.6 trillion in fourth quarter

Key Points

  • BlackRock’s assets hit a record high of $11.6 trillion in Q4 2023, with a 21% profit jump.
  • Client assets increased due to a U.S. stock market rally post-Trump's election, betting on lower taxes and deregulation.
  • BlackRock spent $25 billion on acquisitions to strengthen its position in private markets.
  • Net income rose to $1.67 billion, with $201 billion in long-term net inflows, primarily into ETFs.
  • The S&P 500 and global stock indices showed significant gains, contributing to BlackRock's performance.

Summary

BlackRock, the world's largest money manager, reported a record-breaking $11.6 trillion in assets under management in the fourth quarter of 2023, marking a significant 21% increase in profit. This surge was largely fueled by a U.S. stock market rally following Donald Trump's presidential election victory, with investors anticipating lower corporate taxes and deregulation. The company's strategic acquisitions, including Global Infrastructure Partners and HPS Investment Partners, for about $25 billion, aimed at bolstering its presence in private markets, were well-received by clients. BlackRock's CEO, Larry Fink, highlighted that unlike many firms where M&A activities might pause client engagement, BlackRock's clients have embraced and rewarded their strategy. The firm saw a net income increase to $1.67 billion, with substantial inflows into long-term investments, particularly ETFs, totaling $201 billion. The performance was supported by a strong equity market, with the S&P 500 gaining 2.1% in Q4 and 23.3% for the year, while global stocks also showed positive yearly gains. This performance has led analysts to suggest that investors are beginning to re-risk, moving from the sidelines into equity and fixed income products, boosting confidence in BlackRock's future.

cnbc
January 15, 2025
Stocks
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