BlackRock vs The Blackstone Group: Where Should You Invest? | HelpAdvisor.com (2024)

BlackRock vs The Blackstone Group: Where Should You Invest? | HelpAdvisor.com (1)

Christian Worstell | November 06, 2023

Choosing between investment firms can be a tough decision. After all, you want to be sure your retirement income is secure and provides the returns that you expect.

BlackRock and The Blackstone Group are two of the largest investment firms in the world, but how do they differ? Read on to learn more about each company and what they offer so you can determine if one might be right for your future investments.

What Products Do BlackRock and The Blackstone Group Offer?

BlackRock Products and Services

Blackrock is a traditional investment firm that offers both open- and closed-ended investments. Some of its products and services include:

  • an iShares ETF management tool
  • Stocks and bonds
  • Mutual funds
  • Alternative investments, such as private assets and hedge funds
  • Retirement planning

BlackRock caters to individuals and institutions with its mixture of investment services.

The Blackstone Group Products and Services

The Blackstone Group is a more exclusive firm offering alternative investments such as:

  • Private equity
  • Real estate
  • Hedge fund solutions
  • Credit and insurance

It has fewer managed assets globally than BlackRock, but it’s a niche firm. As such, it works only with high-net-worth individuals and financial institutions.

What Fees Does BlackRock charge?

The fees associated with investing vary depending on which products you use and how much you invest.

Equity funds, multi-asset funds, fixed income funds and cash investments all have their own fee schedules. Each may have an initial sales charge up to around 5% and an ongoing trail of around 0.25% that starts immediately after you make a purchase. As the investment amount increases, percentage fees decrease.

For example, invest less than $25,000 in equity funds for a 5.25% sales charge — invest more than $750,000, and the charge drops to 1.5%. Index and cash investments pose no sales charge.

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What Fees Does The Blackstone Groupcharge?

Although Blackstone doesn't make its fee structure clear on its website, it's understood that it charges management and performance fees.

BlackRock vs The Blackstone Group: Which Is the Bigger Company?

Technically speaking, BlackRock is the largest of the two companies, with more than 16,000 employees and over $10 trillion in assets under management (AUM), compared with Blackstone, which has just over 3,000 employees and $900 billion AUM in assets.

However, the two companies aren’t really comparable by numbers alone, as they provide services to different sectors of the market and are both strong investment firms in their own rights.

BlackRock is the world's largest asset manager and Blackstone Group is the world’s largest private equity firm.

Are BlackRock and The Blackstone Group Connected?

BlackRock and The Blackstone Group are often confused as they share similar names and origins. Founded in 1985, both companies fell under an umbrella company called Blackstone Financial Management, a mergers and acquisitions company. In 1988, BlackRock separated from the parent company and focused on risk management. Today, they're now completely separate companies with different offerings.

BlackRock and The Blackstone Group: Which Is Best For Investing?

BlackRock is a more accessible asset management company with virtually no barrier to entry. Services such as iShares lets even new investors invest in ETFs. The main website provides a comprehensive education section to help any individual learn more about investing. Its fee list is fairly transparent, too. You may want to consider BlackRock if you’re looking for a more traditional investment firm.

The Blackstone Group caters mostly to high-net-worth individuals and exclusively manages alternative assets. If you require a more exclusive approach to investing, this could be a good fit.

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Talk to a licensed agent today to find a plan that fits your needs.

877-578-6039

BlackRock vs The Blackstone Group: Where Should You Invest? | HelpAdvisor.com (2024)

FAQs

BlackRock vs The Blackstone Group: Where Should You Invest? | HelpAdvisor.com? ›

You may want to consider BlackRock if you're looking for a more traditional investment firm. The Blackstone Group caters mostly to high-net-worth individuals and exclusively manages alternative assets. If you require a more exclusive approach to investing, this could be a good fit.

Should I invest in BlackRock or Blackstone? ›

BlackRock offers stability and a wide range of passive investment products, making it suitable for investors looking for diversified and long-term investments. BlackStone, on the other hand, is ideal for those seeking high returns through focused, high-risk alternative investments.

Is BlackRock a good place to invest? ›

BlackRock has 16.21% upside potential, based on the analysts' average price target. BlackRock has a consensus rating of Strong Buy which is based on 11 buy ratings, 2 hold ratings and 0 sell ratings. The average price target for BlackRock is $910.67.

Is Blackstone a good place to invest? ›

Blackstone holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.

Why did Blackstone and BlackRock split? ›

Fink wanted to share equity with new hires, to lure talent from banks, unlike Schwarzman, who did not want to further lower Blackstone's stake. They agreed to part ways, and Schwarzman sold BlackRock, a decision he later called a "heroic mistake."

Why BlackRock is the best? ›

BlackRock is the world's largest asset manager

Nobody manages assets at the scale that BlackRock does. Its $9.4 trillion in assets under management (AUM) makes it the world's largest asset manager, outpacing Vanguard ($7.2 trillion in AUM) and Fidelity ($3.8 trillion in AUM).

Is it safe to invest in BlackRock? ›

BlackRock currently has an average brokerage recommendation (ABR) of 1.34, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 16 brokerage firms.

Is it a good time to invest in BlackRock? ›

BlackRock Inc currently has a 2.6% dividend yield. There is a neutral fundamental outlook for the investment management and fund operators' sub-industry. The long-term outlook is relatively healthy due to aging populations.

What are the negatives of BlackRock? ›

Forests are disappearing

BlackRock is also the world's largest investor in forest destruction, including in the Amazon Rainforest. Forests are massive biodiversity hubs and carbon sinks, and we can't solve climate change without protecting what's left.

Why not invest in BlackRock? ›

They also invest heavily in companies driving deforestation and back firms that undermine Indigenous rights. Asset managers that continue to fund the climate crisis face exponential risks, both environmental and financial. That's BlackRock's Big Problem.

Can normal people invest in BlackRock? ›

Buying shares in the BlackRock Income and Growth Investment Trust is easy. You can do so via a stockbroker or an online platform. You can also invest in investment trusts through your ISA with another provider or self-invested personal pension (SIPP).

What is Blackstone's best investment? ›

Blackstone's Best Investment Ever May Be AI Data Centers

The world's largest private equity firm is bankrolling the development of massive data centers that will handle crucial computing needs, while also reshaping communities across America.

Is Blackstone dividend safe? ›

If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Blackstone distributed an unsustainably high 118% of its profit as dividends to shareholders last year. Without extenuating circ*mstances, we'd consider the dividend at risk of a cut.

Why is Blackstone stock so low? ›

“This real estate fear is the primary factor driving BX's poor absolute and relative stock price performance year to date,” John Miller, a portfolio manager at Ariel Investments, said on Wednesday. His team holds positions in alternative asset managers Carlyle Group and KKR and held Blackstone from 2011 to 2020.

Is BlackRock or Blackstone more powerful? ›

However, the two companies aren't really comparable by numbers alone, as they provide services to different sectors of the market and are both strong investment firms in their own rights. BlackRock is the world's largest asset manager and Blackstone Group is the world's largest private equity firm.

Why are people pulling out of BlackRock? ›

Texas's public schools are pulling out billions of dollars that had been invested with asset manager BlackRock — a firm the state accused of boycotting fossil fuels.

Who is BlackRock biggest rival? ›

Top Competitors and Alternatives of Blackrock Investors

The top three of Blackrock Investors's competitors in the Investment And Finance Services category are Q4 with 27.65%, Coinbase with 16.36%, Orion Advisor with 9.30% market share.

Which is better, Vanguard or BlackRock? ›

Which platform offers better support for long-term, passive investing? Vanguard is renowned for its commitment to passive investing and is a popular choice for those seeking low-cost, long-term investment strategies. BlackRock offers a variety of options, including a good balance of active and passive options.

What is the BlackRock controversy? ›

The decision by the Texas State Board of Education to terminate its investment partnership with BlackRock has reignited the debate surrounding Environmental, Social, and Governance (ESG) investing in the United States.

Is Amazon owned by BlackRock? ›

Who currently owns Amazon? Amazon is a publicly traded company, which means it's owned by shareholders. Its largest individual shareholder is founder and former CEO Jeff Bezos, followed by institutional investors Vanguard Group, BlackRock, and State Street.

Why does BlackRock want to be Blackstone again? ›

It's not just the name: BlackRock, the world's largest asset manager, has its roots in Blackstone, the world's largest alternative investment manager. On the back of a multiyear boom in private equity and credit, it would make sense that the former wants to move closer to the business of the latter.

Is BlackRock Capital a good investment? ›

BlackRock Capital Investment's analyst rating consensus is a Hold.

How much money do you need to invest in Blackstone? ›

Minimum initial investment for Class D, S and T shares is $2,500.

Does BlackRock outperform the market? ›

We expect BlackRock BLK -0.1% to outperform the consensus estimates for revenues and earnings. The company surpassed the street expectations in the last quarter, with total revenues improving 7% y-o-y to $4.46 billion.

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