BlackRock Inc. (BLK) is a global investment management company. The publicly traded company had a market capitalization of nearly $112.85 billion as of April 18, 2024. BlackRock provides investment and technology services to institutional and retail clients. Clients look to BlackRock for access to mutual funds, investments focused on objectives related to retirement income and college savings, and exchange-traded funds (ETFs).
Key Takeaways
- BlackRock is one of the world's largest investment management companies by AUM.
- The company operates as a single business segment.
- The firm derives most of its revenue from investment advisory and administration fees.
- BlackRock's competitors include The Vanguard Group, State Street Corp., and T. Rowe Price Group Inc.
BlackRock's Industry
BlackRock generates revenue from five segments: "Investment advisory, administration fees, and securities lending revenue," "Investment advisory performance fees," "Technology services revenue," "Distribution fees," and "Advisory and other revenue." BlackRock's competitors include The Vanguard Group, State Street Corp. (STT), and T. Rowe Price Group Inc. (TROW).
- Investment Advisory, Administrative Fees, and Securities Lending: Provides most of BlackRock's revenue through investment advisory and administration fees based upon percentages of AUM. In FY 2023, this category accounted for $14.4 billion, or about 81% of total revenue.
- Investment Advisory Performance Fees: Performance fees are assessed when performance exceeds a predetermined threshold. Performance fees accounted for $554 million, or about 3% of total revenue in FY 2023.
- Technology Services: BlackRock offers investment management technology systems, risk management services, wealth management, and digital distribution tools to various insurance companies, banks, pension funds, and asset manager clients. Technology services accounted for $1.49 billion in revenue for FY 2023 or about 8% of the total.
- Distribution Fees: Revenue associated with the distribution and service of its products. In FY 2023, this category accounted for $1.26 billion, or about 7% of total revenue for the year.
- Advisory and Other Revenue: Revenue derived from its advisory services for global financial institutions, regulators, and governments. In FY 2023, this category accounted for $159 million, or about 1% of total revenue.
BlackRock is the parent company for the iShares group of ETFs, a leader in the global ETF market.
BlackRock's Financials
BlackRock filed its latest 10-K in Feb. 2024 for the 2023 fiscal year (FY), which ended Dec. 31, 2023, reporting over $10.0 trillion in assets under management (AUM). The company reported a net income of $5.5 billion, up 6.26% compared to the previous fiscal year. Revenue shrank by less than 1% year over year (YOY) to $17.86 billion.
BlackRock generated $1.9 trillion of net inflows during the fiscal year. The Americas region led all other regions with long-term net flows of $177.2 billion. The company's ETF offerings generated $185.9 billion in long-term net inflows, more than the long-term net inflows of retail and institutional investors combined.
History and Leadership
In 1988, Laurence D. Fink and seven partners founded BlackRock. BlackRock went public in 1999, ending with $165 billion in assets under management that year. In 2024, Fink is the company's Chairman and Chief Executive Officer (CEO).
Recent Developments
BlackRock and Jio Financial Services formed a joint venture in 2023, boosting BlackRock's presence in India’s financial industry. In 2024, BlackRock acquired Global Infrastructure Partners, an independent infrastructure fund manager, for $3 billion and approximately 12 million shares of BlackRock common stock.
Where Are BlackRock Offices Located?
BlackRock is a global firm with 70 offices in 30 countries.
Where Are BlackRock Clients Located?
BlackRock manages assets for clients in North and South America, Europe, Asia, Australia, the Middle East, and Africa.
What Corporate Clients Has BlackRock Advised?
BlackRock's corporate clients have included AIG, UBS, the Central Bank of Ireland, and the Federal Reserve Bank of New York.
The Bottom Line
BlackRock is a global investment management company with offices located in thirty countries. The company boasted a nearly $112.85 billion market capitalization in Apr. 2024. The company was founded in 1988 and went public in 1999.
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FAQs
The firm derives most of its revenue from investment advisory and administration fees. BlackRock's competitors include The Vanguard Group, State Street Corp., and T. Rowe Price Group Inc.
Where did BlackRock get their money? ›
The firm derives most of its revenue from investment advisory and administration fees. BlackRock's competitors include The Vanguard Group, State Street Corp., and T. Rowe Price Group Inc.
Why is BlackRock so successful? ›
Exchange-Traded Funds (ETFs) have been a cornerstone of BlackRock's success. These investment vehicles have allowed investors to diversify their portfolios at a low cost. BlackRock's iShares brand is one of the most heavily traded names in the stock market today.
What is the main business of BlackRock? ›
BlackRock is one of the world's leading providers of investment, advisory and risk management solutions. We are a fiduciary to our clients. We're investing for the future on behalf of our clients, inspiring our employees, and supporting our local communities. Watch the video to learn more.
How does BlackRock have so much assets? ›
BlackRock manages $8.5 trillion in assets which are owned by its clients. Those clients are insurance companies, mutual funds, pension funds, etc.
How does BlackRock make a profit? ›
The company generates revenue by managing clients' investment portfolios, providing personalized advice, and leveraging technology. BlackRock's revenue growth is driven by diversification across markets, multi-asset strategies, and alternative investments.
Does BlackRock own Tesla? ›
Tesla is a leading auto manufacturer and one of the most valuable companies in the world. As of 2024, the largest shareholder is CEO Elon Musk, who holds about a fifth of Tesla equity. Besides Musk, the largest shareholders are asset managers, like BlackRock and Vanguard.
Is BlackRock controlling the world? ›
BlackRock is the world's largest asset manager, with US$8.59 trillion in assets under management as of December 31, 2022. This means that BlackRock owns or manages a significant share of many companies, including some of the biggest and most influential ones in various sectors and industries.
Who is BlackRock's biggest competitor? ›
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.
Who is the real owner of BlackRock? ›
Larry Fink is the founder, CEO and chairman of powerhouse investment management firm BlackRock, one of the world's largest asset managers. He and seven partners founded BlackRock in 1988. Originally it was part of The Blackstone Group.
The group added that BlackRock's CEO, Larry Fink has expressed support for Israel throughout the war and also pointed out his alleged role in suppressing pro-Gaza student protests at Columbia University. In October, Fink appeared on the FOX Business Network to discuss Israel's war in Gaza.
Does BlackRock own Disney? ›
According to the latest SEC filing, BlackRock, another major institutional Disney owner, held 121,690,183 DIS shares as of Q1 2024. This was about 6.67% of the company's outstanding shares. Founded 36 years ago in 1988, today Blackrock is one of the biggest and best-known financial services companies in the world.
How much does CEO of BlackRock make? ›
How Does Total Compensation For Larry Fink Compare With Other Companies In The Industry? Our data indicates that BlackRock, Inc. has a market capitalization of US$116b, and total annual CEO compensation was reported as US$27m for the year to December 2023.
Why is BlackRock so powerful? ›
BlackRock invests the funds of its clients (for example, the owners of iShares exchange-traded fund units) in numerous publicly traded companies, some of which compete with each other. Because of the size of BlackRock's funds, the company is among the top shareholders of many companies.
Who is the biggest investors in BlackRock? ›
BlackRock's largest institutional shareholders are Vanguard Group, BlackRock itself, State Street Global Advisors, Temasek Holdings, and Bank of America.
How much is Larry Fink really worth? ›
Who are the major shareholders of BlackRock? ›
BlackRock's largest institutional shareholders are Vanguard Group, BlackRock itself, State Street Global Advisors, Temasek Holdings, and Bank of America.
What percentage of the world's wealth does BlackRock own? ›
Now, it is the world's largest asset manager with $10 trillion currently in its portfolio. According to Marketwatch, there is currently around $40 trillion in circulation around the world — which means BlackRock manages a quarter of the world's money.
