BlackRock's assets hit record $11.5 trillion amid private market push

By Arasu Kannagi Basil and Davide Barbuscia

(Reuters) -BlackRock's assets under management hit a record high for the third straight quarter thanks to surging inflows amid a market rally, as the world's largest asset manager pushes to expand its footprint in private markets.

Stock markets overcame an August sell-off and broadened their rally in the third quarter, boosted by renewed hopes of a soft landing for the world's largest economy.

Assets managed by BlackRock (NYSE:BLK ) shot up to $11.48 trillion in the period, compared with $9.10 trillion a year earlier and $10.65 trillion in the second quarter, the company said on Friday.

"Our strategy is ambitious, and our strategy is working," Larry Fink, chairman and CEO, said in a statement.

Last week, the New York-based firm completed its $12.5 billion acquisition of Global Infrastructure Partners, adding over $100 billion in assets to its kitty. Later this year, it is expected to close its $3.2 billion acquisition of private markets data provider Preqin.

The two deals are expected to bolster BlackRock's presence in infrastructure investments and in private markets, both key areas of growth.

"Growing public deficits are only going to expand the role of private markets in powering economic growth," Fink said in an earnings call on Friday.

BlackRock registered $160 billion in long-term net inflows in the third quarter. Total net inflows hit a quarterly record of $221.18 billion, up from $2.57 billion a year ago. A majority of the long-term inflows were captured by ETFs, at $97.41 billion. Clients poured in $62.74 billion into BlackRock's fixed-income products.

Asset managers have contended with softer inflows in recent years as interest rate hikes boosted the appeal of safe-haven assets like cash. Some investors also sat on the sidelines, waiting for more certainty on the interest-rate trajectory, before stepping back into riskier assets.

But with the U.S. Federal Reserve kicking off its long-anticipated easing cycle, asset managers could benefit if investors move cash off the sidelines into assets such as fixed income products, a development Fink said could occur in a more “normalized” but "relatively high-rate environment.”

Equity market benchmarks finished higher in the third quarter, with the S&P 500 gaining 5.4%, while the MSCI's gauge of stocks across the globe rose 6.2%.



BlackRock's net income rose to $1.63 billion, or $10.90 per share, in the three months ended Sept. 30, from $1.60 billion, or $10.66 per share, a year earlier.

BlackRock's shares were up 1.9% at market open on Friday. Its shares have advanced about 18% in 2024 as of last close, trailing the 21% jump of the S&P 500.

Source: Investing.com