BlackRock now controls a record $11.5 trillion worth of assets

BlackRock, the world’s largest asset manager, has reached a new milestone, managing a record $11.5 trillion in assets, driven by significant fourth-quarter inflows into its exchange-traded funds (ETFs).

Often referred to as the “fourth branch of government,” BlackRock’s assets under management (AUM) have hit record highs for three consecutive quarters, fueled by a U.S. stock market rally and a strategic push into private markets.

The company’s assets surged to $11.48 trillion in the latest quarter, up from $9.10 trillion a year ago and $10.65 trillion in the previous quarter. The $11.5 trillion AUM is more than the gross domestic product of every country in the world, except for the US and China. This increase was supported by a stock market recovery after an August dip, as optimism about a soft landing for the U.S. economy grew.

BlackRock said it is positioning itself as a comprehensive platform for investors by blending public and private market offerings. “Our strategy is ambitious, and it’s delivering results,” said Larry Fink, chairman and CEO, in a statement.

Recently, BlackRock completed its $12.5 billion acquisition of Global Infrastructure Partners, adding more than $100 billion in assets. The company is also set to finalize a $3.2 billion deal to acquire private markets data provider Preqin, further strengthening its footprint in infrastructure and private market investments—two key areas of growth, Reuters reported.

“With growing public deficits, private markets will play an increasingly important role in driving economic growth,” Fink noted during an earnings call.

In the third quarter, BlackRock saw $160 billion in long-term net inflows, with total net inflows reaching a record $221.18 billion, significantly higher than last year’s $2.57 billion. The bulk of these inflows came through ETFs, which attracted $97.41 billion, while fixed-income products saw $62.74 billion in investments.

Founded in 1988, BlackRock has seen its AUM grow by $2.4 trillion this year, thanks to $456 billion in inflows and an appreciation in the value of its existing assets. The recent acquisition of Global Infrastructure Partners added another $116 billion, further solidifying BlackRock’s leadership in the asset management industry.

In its third-quarter report, BlackRock highlighted strong growth driven by ETF inflows, which amounted to $97.4 billion, compared to $55.9 billion from institutional investors. As a result, the firm’s revenue rose by 15% year-over-year, benefiting from higher base and performance fees linked to its growing AUM.

BlackRock also improved its operating margins, increasing from 42.3% in the third quarter of 2023 to 45.8% this year. This contributed to a 26% rise in operating income, reaching $2.1 billion. The firm exceeded expectations with adjusted earnings per share (EPS) of $11.46, outperforming the $10.36 forecast by analysts polled by FactSet.

In addition to the assets under management, BlackRock also runs Aladdin, a massive technology platform that oversees at least $21.6 trillion in assets. Aladdin is a network of 5,000 computers BlackRock uses to monitor millions of trades and analyze its clients’ portfolios 24 hours a day to perform risk analysis. It also acts as the “central nervous system” for many of the big players in the investment management industry.

BlackRock CEO Larry Fink