BlackRock reaches $11.5 trillion in assets

BlackRock achieved record client capital inflows of $221 billion in the third quarter, leading to an all-time high in its assets under management, which now stand at $11.5 trillion. This success is reflected in BlackRock's ambition to become one of the largest asset managers, offering a wide range of investment products, including equities, bonds and increasingly private assets.

According to a recent statement from CEO Larry Fink, investors have added $97 billion in exchange-traded funds (ETFs) and another $63 billion in bond investments. In total, BlackRock $BLK has already received $360 billion in net inflows this year, surpassing the total annual inflows for 2022 and 2023.

Fink emphasized that BlackRock effectively leverages its technology, scale and global presence to achieve profitable growth. Among alternative investments, BlackRock saw inflows of $5.5 billion, compared to a negative $4.2 billion in that segment last year. The company also reported $170 billion in illiquid alternative assets, a number that is expected to increase further in the future.

After the end of the third quarter, BlackRock completed its $12.5 billion acquisition of Global Infrastructure Partners, which added another $116 billion in private market assets. Further, BlackRock reported net inflows of $160 billion into its long-term investment funds during the period, beating the average estimate of analysts who expected inflows of around $100 billion.

The cash management and money market funds added another $61 billion. The company's operating income rose 26% from a year earlier to $2.1 billion. Overall, BlackRock added $2.4 trillion to its assets over the past 12 months.

BlackRock strives to become the one place for global clients to invest in both public and private markets. It has benefited this year from a surge in stocks and cash inflows into bond and private funds. The S&P 500 index rose about 5.5% in the third quarter, with investors expecting the Federal Reserve won't have to cut interest rates sharply to avoid a recession.

BlackRock is also about to close its £2.55bn ($3.3bn) acquisition of private markets data firm Preqin. The company has signalled it wants to make inroads in the fast-growing private credit market, and has recently made changes to the senior management of its global private debt unit and set up a direct lending group. According to reports, BlackRock is interested in buying HPS Investment Partners, which could value the firm at more than $10 billion.

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Source: CNBC, Yahoo.