BlackRock, the world’s largest asset manager, reported record assets under management of about $10.5 trillion in the first quarter, alongside a 36% increase in profit. The surge in assets was driven by a global equity market rally, with the S&P 500 index up 10% and the MSCI’s global stock performance index rising 7.7%. BlackRock’s investment advisory and administration fees also saw a significant increase, reaching $3.63 billion, due to the rise in assets under management.
Looking ahead, BlackRock chairman and CEO Larry Fink expressed optimism about opportunities in areas such as artificial intelligence, emerging markets, and infrastructure. The company’s recent acquisition of Global Infrastructure Partners for $12.5 billion aims to expand its presence in private markets and alternative assets. Despite challenges in the revenue stream and criticism of its environmental, social, and corporate governance business, BlackRock remains open to pursuing more private market opportunities, with potential for further transformative deals.
While total net inflows dipped to $57 billion from $110 billion, analysts project a re-acceleration in industry flows following anticipated interest rate cuts. BlackRock’s exchange-traded funds (ETFs) saw significant inflows, including the iShares Bitcoin Trust which attracted $14 billion in net inflows since its launch in January. The company’s total revenue for the quarter increased by 11%, reaching $4.73 billion, driven by higher performance fees, technology revenue, and impact of market growth on average assets under management. The strong financial performance positions BlackRock as a key player in asset management and technology services globally, catering to a diverse range of clients.