BlackRock Hits Record $10.6 Trillion in Assets Under Management

BlackRock, the world’s largest asset manager, reported a milestone in its second-quarter financial results, as assets under management (AUM) soared past the $10 trillion mark.

The company reported an AUM of $10.6 trillion, marking a 13% increase from the previous year’s $9.43 trillion.

BlackRock’s Q2 Performance

According to the report, BlackRock’s earnings per share (EPS) rose to $9.99 from $9.06 a year earlier, with revenue increasing by 7.7% to $4.8 billion. Total revenue for the quarter grew by 8% to $4.81 billion, while net income rose to $1.50 billion.

The company reported total net inflows of $139 billion for the year’s first half, including a record $82 billion quarterly net inflows for BlackRock ETFs. Investment advisory and administration fees, typically a percentage of AUM, increased by 8.6% to $3.72 billion. Revenue from technology services also increased by 10% to $395 million, driven by strong demand for its investment risk management platform, Aladdin.

BlackRock also holds the largest public Bitcoin position through its iShares Bitcoin Trust (IBIT) ETF, which now contains over 300,000 BTC. In a muted response to the company’s second-quarter earnings release, the asset manager’s stock price dipped 0.028% during pre-market trading on Monday.

Larry Fink, Chairman and CEO of the asset manager, commented, “BlackRock is executing on the broadest opportunity set we’ve seen in years, including in private markets, Aladdin, and whole portfolio solutions across both ETFs and active.”

Last month, BlackRock agreed to acquire data provider Preqin in a deal valued at nearly $3.2 billion. This acquisition will enhance BlackRock’s private market capabilities by delivering integrated investments, technology, and data to the whole portfolio.

The company is close to completing its planned acquisition of Global Infrastructure Partners in the third quarter of 2024. This acquisition is expected to double private market base fees and add approximately $100 billion of infrastructure AUM.

BlackRock’s Shares Lag Behind S&P 500 Gains

Meanwhile, the broader stock market has reached record highs in recent months, fueled by growing optimism for a smooth landing for the U.S. economy and excitement around artificial intelligence-related stocks.

The benchmark S&P 500 index increased by 11% in the reported quarter, contributing to BlackRock’s AUM growth. Despite this, BlackRock’s shares have risen only 3.4% so far this year, underperforming the 18.4% gain of the S&P 500 index.

However, the company remains optimistic about its growth prospects. Fink emphasized, “BlackRock is defining a unique, integrated approach to private markets – spanning investment, technology workflows, and data. We believe this will deepen our relationships with clients and deliver value for our shareholders through premium, diversified organic revenue growth.”

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