BlackRock’s Larry Fink sees new highs after record-breaking year
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The news: BlackRock hauled in USD641 billion ($1.03 trillion) in new client funds in 2024, propelling annual revenue past USD20 billion for the first time and cementing its position as the world’s largest asset manager.
The numbers: Total assets under management climbed to USD11.55 trillion, slightly below analysts’ expectations of USD11.66 trillion, according to estimates cited by the FT.
Quarterly revenue surged 23% year-on-year to USD5.68 billion, while net income rose 21% to USD1.67 billion. Annual revenues totalled USD20.41 billion.
Strategic acquisitions, including Global Infrastructure Partners, Preqin and HPS Investment Partners, drove growth in private markets.
Shares rose as much as 6.5% at the open.
BlackRock announced leadership changes following the departure of Mark Wiedman, a 20-year veteran and former head of global client business. Joe DeVico will lead the Americas client business, while Jaime Magyera will oversee the retirement division.
A new global partners office, led by Charles Hatami and Stacey Mullin, will focus on connecting asset owners with capital markets, Bloomberg reported citing a memo to employees.
What they said: CEO Larry Fink called it a “milestone year” and predicted more upside in 2025.
“This is just the beginning,” he said in a statement. “Our record organic growth and financial results do not yet reflect the full integration or pending acquisitions of the high-growth businesses of GIP, HPS and Preqin. And we’ve steadily made organic investments ahead of structural trends that we expect to drive outsized growth in the years ahead.”
Kyle Sanders, senior equity research analyst at Edward Jones said that “strong asset inflows this quarter contributed to a record-setting year for BLK… (This) should boost investor confidence that the long-awaited great rotation, where investors move off the sidelines and start to 're-risk' by investing in equity and fixed income products, is beginning to materialize."
The sources: BlackRock release, Bloomberg , The Financial Times
