BlackRock’s assets under management surge to record $10.65 trillion

BlackRock, the planet’s largest asset manager, said on Monday that the business’s assets hit a record $10.65 trillion in the second quarter thanks to climbing client asset values and investors pumping cash into the company’s exchange-traded funds.

Key Highlights:

1. Record AUM: BlackRock‘s assets under management (AUM) hit a record $10.65 trillion in Q2 2024, up from $9.43 trillion a year earlier and $10.5 trillion in Q1 2024.
2. Stock Market Boost: The surge in AUM is attributed to rising client asset values and increased investments in the company’s exchange-traded funds (ETFs), fueled by record-high stock markets and investor interest in AI-linked stocks.
3. Market Performance: The benchmark S&P 500 index jumped approximately 4% in the reported quarter, contributing to the growth in AUM.
4. Strategic Acquisitions: BlackRock anticipates closing two significant acquisitions in the second half of the year, enhancing its presence in infrastructure investments and private markets:
   • Preqin Acquisition: In June, BlackRock agreed to buy private markets data provider Preqin for nearly $3.2 billion.
   • Global Infrastructure Partners Deal: Earlier in the year, BlackRock acquired Global Infrastructure Partners for $12.5 billion, underscoring its commitment to alternative assets and infrastructure projects.
5. Growth Opportunities: Larry Fink, BlackRock’s chairman and CEO, expressed optimism about future growth, particularly in energy transition and AI data centers. He highlighted the firm’s bullish stance on infrastructure debt as a significant opportunity for clients and shareholders.
6. Inflows and ETFs: BlackRock registered total net inflows of $81.57 billion in Q2, slightly above the $80.16 billion from a year earlier. ETFs captured the majority of these flows, with $83 billion in inflows, marking the best start to a year on record for these funds.
7. Private Markets Focus: The shift towards higher-margin, higher-fee products, particularly in private markets, is a strategic move to enhance profitability. Kyle Sanders, a senior equity research analyst at Edward Jones, noted the potential for higher fees in private assets compared to iShares ETFs.

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Conclusion:

BlackRock’s impressive AUM growth reflects its strategic investments and the favorable market conditions driven by optimism around the U.S. economy and AI advancements.

The company’s focus on private markets and infrastructure investments positions it well for sustained growth, offering robust opportunities for clients and shareholders alike.