Latest news with #GlobalInfrastructurePartners
South China Morning Post
4 days ago
- Business
- South China Morning Post
Hong Kong's CK Hutchison ports sale on thin ice amid US-China tensions: analysts
The US$23 billion sale of global port stakes by Hong Kong's CK Hutchison could be subject to substantial changes if it is not already on the verge of collapse, with Chinese and Panamanian authorities possibly rejecting the terms, legal and logistics experts have said ahead of the deal's deadline for exclusive negotiation. Their analysis followed national security and anti-monopoly concerns cited by both countries, with a recent news report suggesting that a state-owned shipping company was now involved in the negotiation to ease Beijing's concerns. The deal , which includes the Balboa and Cristobal ports at both ends of the Panama Canal, was caught in the crossfire of geopolitical tensions between the United States and China just weeks before a crucial July 27 exclusive negotiation deadline. The transaction involves CK Hutchison Holdings selling stakes in 43 ports to a consortium led by Terminal Investment Limited, an affiliate of the world's largest container line MSC, and US asset management giant BlackRock and Global Infrastructure Partners. 'The deal regarding price, due diligence and financing is basically done. What remains are the signoffs from the Panamanian and mainland authorities,' said Surinder Brrar, a professor of practice in global shipping and logistics at Polytechnic University. He described these approvals as 'big hurdles' that could derail the entire transaction if not surmounted.
Yahoo
4 days ago
- Business
- Yahoo
BlackRock Rides on Private Market Growth: Is Now the Time to Buy BLK?
Last week, BlackRock Inc. BLK unveiled its plans to expand in private markets during an Investor Day conference. The company is targeting $400 billion in private markets fundraising by 2030, as it predicts that the private credit market could expand to $4.5 trillion in 2030 from $1.6 trillion last the private credit market emerges as a lucrative sector in global finance, BlackRock has been strategizing to enhance its capabilities by integrating investments, technology, and data across the entire portfolio. During the conference, the company mentioned that it aims to double its operating income and market capitalization by 2030. BLK targets its adjusted operating income to double to $15 billion by 2030 and its market cap to reach $280 further optimism, management mentioned that it has set its annual revenue target at more than $35 billion for 2030, implying a five-year compound annual growth rate (CAGR) of 10%. In 2024, the company earned revenues of $20 billion. Further, in these five years, BlackRock expects organic base fee growth of 5% or more and its adjusted operating margin to be 45% or more. Strategic Acquisitions: BlackRock has been expanding its footprint in domestic and global markets through acquisitions. In March 2025, it purchased Preqin, a premier independent provider of private markets data, for almost $3.2 billion in cash to enhance its private markets October 2024, BLK acquired Global Infrastructure Partners to enhance its infrastructure offerings and origination capabilities. In May 2024, it completed the buyout of the remaining 75% stake in SpiderRock, solidifying its separately managed accounts offerings. Further, in December 2024, the company announced a deal to acquire HPS Investment for $12.1 billion to foray deeper into the private credit buyouts reflect a strategic expansion of the company's Aladdin technology business into the rapidly growing private markets data segment. In 2023, the company took over London-based Kreos Capital. Besides these, in the past, the company has acquired numerous firms across the globe, strengthening its presence and market share. Product Diversification to Boost AUM: BlackRock has been focusing on diversifying its product suite and revenue mix, which has been improving its assets under management (AUM) over the years. The company's inorganic growth strategy also contributed to AUM's witnessed a five-year (2019-2024) CAGR of 9.2%. The uptrend continued during the first quarter of 2025. As of March 31, 2025, BlackRock's total AUM was a record $11.58 trillion, with net inflows of $83 billion. Last year, the company witnessed record net inflows of $641 billion, including industry-leading exchange-traded funds (ETF) net inflows of $390 billion. The momentum will likely continue as efforts to strengthen the iShares unit (offering more than 1,400 ETFs globally) and ETF operations and an enhanced focus on the active equity business are likely to offer March, the company launched iShares Bitcoin on Xetra and Euronext Paris under the ticker IB1T and on Euronext Amsterdam under the ticker name BTCN. Last September, the company announced a collaboration with Partners Group to introduce a multi-private markets model solution, boosting retail investors' accessibility to alternative last week, Jio BlackRock, a joint venture between BLK and India-based Jio Financial, received regulatory approval to operate as an investment adviser in product diversification efforts are likely to bolster the company's revenue mix, reduce revenue concentration risk, and allow it to serve a broader range of clients, aiding AUM growth. The company's GAAP revenues witnessed a CAGR of 7% over the last five years ended 2024, with momentum persisting in the first quarter of the combination of HPS Investment, Preqin and GIP data with BLK's alternative asset management platform, eFront, will drive solid revenue growth in the quarters ahead. Sales Estimates Image Source: Zacks Investment Research Over the past month, the Zacks Consensus Estimate for 2025 and 2026 earnings of $44.75 and $50.46, respectively, has been revised marginally upward. Estimate Revision Trend Image Source: Zacks Investment Research The projected figures imply growth of 2.6% and 12.8% for 2025 and 2026, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) On the back of a solid balance sheet, BlackRock announced a 2% hike in the quarterly dividend to $5.21 per share in January 2025. BLK has increased its dividend five times in the last five years with an annualized dividend growth rate of 8.15%.Also, the company has a 46% dividend payout ratio, while its peers, SEI Investments SEIC and Invesco Ltd. IVZ, have 21% and 45% payout ratios, respectively. Dividend Yield Image Source: Zacks Investment Research Also, BlackRock has a share repurchase plan in place. In the first quarter of 2025, the company repurchased $375 worth of shares. It aims to buy back shares worth $1.5 billion this the past month, BLK shares have declined 2.2%, underperforming the S&P 500 index and the Zacks Finance sector but outperforming the industry. Additionally, the stock has outperformed its close peers — SEI Investments and Invesco. One-Month BLK Price Performance Image Source: Zacks Investment Research In terms of valuation, BLK's price-to-book ratio (P/B) of 3.13X is lower than the industry's 3.49X. Thus, the stock is trading at a discount. This suggests that investors may be paying a lower price relative to the company's expected earnings growth. Price-to-Book Ratio Image Source: Zacks Investment Research Further, BLK is inexpensive compared with SEI Investments' P/B of 4.58X. On the other hand, the company is trading at a premium compared with Invesco, which has a P/B of 0.58X. BlackRock's growth initiatives have helped generate higher returns. This is demonstrated by the company's return on equity (ROE) of 15.57% compared with the industry's ROE of 10.60%. Return on Equity Image Source: Zacks Investment Research However, a steady rise in expenses is a headwind. The company recorded a five-year CAGR of 7.4% (ended 2024), mainly due to higher general and administrative (G&A) costs. The uptrend continued in the first quarter of 2025. Overall costs are expected to remain elevated due to the company's business expansion plans and persisting inflationary pressures. Management expects core G&A expenses in 2025 to increase in the mid to high-single-digit percentage given rising geopolitical risks, foreign currency fluctuations and the global impact of tariff policies, BlackRock may witness subdued overseas revenues, which will likely weigh on its BlackRock is well-positioned to capitalize on acquisitions and expand its presence in the fast-growing private markets. The record AUM level and product diversification efforts are other tailwinds. Moreover, lower valuation compared with the industry and bullish analyst sentiments are other investors should watch out for the above-mentioned concerns and monitor how BlackRock integrates the acquisitions into its businesses before making any investment decision. Those who already own the stock can continue holding it for BLK carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BlackRock (BLK) : Free Stock Analysis Report Invesco Ltd. (IVZ) : Free Stock Analysis Report SEI Investments Company (SEIC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Globe and Mail
13-06-2025
- Business
- Globe and Mail
BlackRock Targets Raising $400B in Private Market Funds by 2030
BlackRock BLK is targeting $400 billion in private markets fundraising by 2030. In its investor presentation, the firm predicted that the private credit market could expand to $4.5 trillion in 2030 from $1.6 trillion last year. As the private credit market emerges as a lucrative sector in global finance, BlackRock has been strategizing to enhance its capabilities in the market by integrating investments, technology and data across the entire portfolio. In the presentation, the company mentioned that it aims to double its operating income and market capitalization by 2030. BLK targets its adjusted operating income to double to $15 billion by 2030 and its market cap to reach $280 billion. Showing further optimism, management mentioned that it has set its annual revenue target at more than $35 billion for 2030, implying a five-year compound annual growth rate of 10%. In 2024, the company earned revenues of $20 billion. Further, in these five years, the company expects organic base fee growth of 5% or more and its adjusted operating margin to be 45% or more. BlackRock's Foray Into the Private Markets Over the past year, BlackRock has committed nearly $28 billion to acquiring private-asset firms. In October 2024, it acquired Global Infrastructure Partners (GIP) for $12.5 billion to enhance its infrastructure offerings and origination capabilities. In December, it announced an agreement to acquire HPS Investment Partners for $12 billion in an all-equity transaction. BLK expects that once the HPS acquisition is complete, it will have about $220 billion of private credit client assets, adding to the more than $225 billion it had in private equity, infrastructure and real estate at the end of the first quarter of 2025. In May 2025, BlackRock acquired Preqin, a premier provider of private markets data, for $3.2 billion (£2.55 billion) in cash. The Preqin buyout represents a strategic expansion of BlackRock's Aladdin technology business into the private markets data segment. Preqin brings a substantial client base to BlackRock, including more than 4,000 relationships with general partners, limited partners and service providers. BlackRock has also collaborated with Partners Group to combine a varied pool of private assets into a single portfolio of alternatives for retail clients. Further, BLK is integrating private equity and credit investments into pre-built portfolios to cater to rising demand among individual investors. It designed model portfolios that combine publicly traded stocks and bonds alongside more sophisticated private equity and credit funds, with plans to add other alternatives over time. The company claims the offering to be the first of its kind in the asset management industry. Our View on BlackRock BLK's inorganic expansion strategy to boost its presence in alternatives and private equity assets, alongside its product diversification efforts, will likely aid top-line and assets under management growth. Moreover, the company's efforts to strengthen its iShares unit (offering more than 1,400 ETFs globally) and ETF operations (received approval for spot Bitcoin and ether ETFs), along with its increased focus on the active equity business, will aid financials. The combination of HPS Investment, Preqin and GIP data with BLK's alternative asset management platform, eFront, will drive solid revenue growth. BLK's Price Performance & Zacks Rank Over the past year, BLK shares have gained 28.5%, outperforming the industry 's 16.9% growth. Currently, BlackRock carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Like BLK, Other Firms Expanding in the Private Credit Market This February, JPMorgan JPM announced an additional $50 billion allocation toward direct lending, solidifying its presence in the credit market. The move, unveiled at its 30th annual Global Leveraged Finance Conference, signals the company's intent to become a dominant force in private credit. Since 2021, JPMorgan has deployed more than $10 billion across 100+ private credit transactions, leveraging its extensive client base and vast origination platform. The bank's partnerships with multiple co-lenders have further strengthened its position, bringing in an additional $15 billion in capital. According to Kevin Foley, global head of Capital Markets at JPM, the company's ability to integrate its origination platform with lender partners has significantly increased deal flow and lending capacity. In 2024, Citigroup C inked a deal with Apollo for its subsidiary and certain affiliates of Apollo to establish a revolutionary $25-billion private credit, direct lending program. The program will initially focus on North America, potentially expanding to additional geographies. Both Citigroup and Apollo expect the program to finance approximately $25 billion of debt opportunities over the next several years, including corporate and financial sponsor transactions. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report BlackRock (BLK): Free Stock Analysis Report
Zawya
12-06-2025
- Business
- Zawya
BlackRock aims to grow revenue to $35bln and more by 2030
BlackRock said on Thursday it was aiming to grow its revenue to $35 billion and more by 2030, as the asset management giant expands its foothold in private markets. The New York-based firm, which reported revenue of $20 billion for 2024, will hold an investor day on Thursday that is expected to provide insight into the firm's strategic priorities and its growing focus on private markets. The world's largest asset manager, overseeing $11.58 trillion as of the end of the first quarter, last year expanded its presence in private markets through a series of acquisitions that BlackRock's boss Larry Fink said were transformational for the New York-based firm. BlackRock spent about $25 billion in 2024 on infrastructure investment fund Global Infrastructure Partners and private credit business HPS Investment Partners. It also struck a $3.2 billion deal to acquire UK data provider Preqin. That acquisition officially closed in March this year. BlackRock is also aiming to double its market cap to $280 billion and targeting $400 billion of cumulative fundraising in private markets by 2030, it said in an investor presentation on Thursday. "I think investors are going to want more granular details and more color on BlackRock's strategy to increase exposure to alternative assets," said Cathy Seifert, an analyst at CFRA Research who covers BlackRock. Private assets generate significantly higher fees than exchange-traded funds (ETFs), a core part of BlackRock's business through its iShares franchise. BlackRock is aiming for its private markets and technology businesses to make up 30% or more of the firm's total revenue by 2030, up from 15% in 2024. In his 2025 annual chairman's letter to shareholders, BlackRock's Chairman and CEO Fink said protectionism had returned with force as a result of a wealth divide that could be countered by offering more investors access to high-return private markets such as infrastructure and private credit. Ben Budish, an analyst at Barclays, said he expected updates from the company on potentially creating indexes based on private markets after the acquisition of private markets data provider Preqin. "Looking at what BlackRock did with iShares and ETFs, is there a way to do that with private markets? … I'm sure there's more details to come on that," he said. Private credit, where non-bank institutions lend to companies, has experienced significant growth in recent years due to stricter regulations that have increased the cost for traditional banks to fund higher-risk loans. But broader market volatility caused by U.S. President Donald Trump's aggressive stance on tariffs has led to slower dealmaking in private markets in general, raising some concerns there may be a mismatch between money available for private lending and not enough places to invest it. Investors may also look for any signs regarding succession at the firm. Fink, 72, has led BlackRock since co-founding it in 1988. A recent wave of senior executive departures has reignited speculation about his eventual successor, even as Fink has signaled no immediate plan to step down. "The firm would do itself a favor by highlighting the depth and breadth of their management bench, particularly since the company's business model is expanding and potentially becoming more complex," said Seifert. (Reporting by Davide Barbuscia in New York and Arasu Kannagi Basil in Bengaluru; editing by Megan Davies, Nia Williams and Maju Samuel)
CTV News
12-06-2025
- Business
- CTV News
BlackRock aims to grow revenue to US$35 billion and more by 2030
Flags fly on the front of BlackRock headquarters, Wednesday, Jan. 13, 2021, in New York. (AP Photo/Mark Lennihan, File) NEW YORK — BlackRock said on Thursday it was aiming to grow its revenue to $35 billion and more by 2030, as the asset management giant expands its foothold in private markets. The New York-based firm, which reported revenue of $20 billion for 2024, will hold an investor day on Thursday that is expected to provide insight into the firm's strategic priorities and its growing focus on private markets. The world's largest asset manager, overseeing $11.58 trillion as of the end of the first quarter, last year expanded its presence in private markets through a series of acquisitions that BlackRock's boss Larry Fink said were transformational for the New York-based firm. BlackRock spent about $25 billion in 2024 on infrastructure investment fund Global Infrastructure Partners and private credit business HPS Investment Partners. It also struck a $3.2 billion deal to acquire U.K. data provider Preqin. That acquisition officially closed in March this year. BlackRock is also aiming to double its market cap to $280 billion and targeting $400 billion of cumulative fundraising in private markets by 2030, it said in an investor presentation on Thursday. 'I think investors are going to want more granular details and more color on BlackRock's strategy to increase exposure to alternative assets,' said Cathy Seifert, an analyst at CFRA Research who covers BlackRock. Private assets generate significantly higher fees than exchange-traded funds (ETFs), a core part of BlackRock's business through its iShares franchise. BlackRock is aiming for its private markets and technology businesses to make up 30 per cent or more of the firm's total revenue by 2030, up from 15per cent in 2024. In his 2025 annual chairman's letter to shareholders, BlackRock's Chairman and CEO Fink said protectionism had returned with force as a result of a wealth divide that could be countered by offering more investors access to high-return private markets such as infrastructure and private credit. Ben Budish, an analyst at Barclays, said he expected updates from the company on potentially creating indexes based on private markets after the acquisition of private markets data provider Preqin. 'Looking at what BlackRock did with iShares and ETFs, is there a way to do that with private markets? … I'm sure there's more details to come on that,' he said. Private credit, where non-bank institutions lend to companies, has experienced significant growth in recent years due to stricter regulations that have increased the cost for traditional banks to fund higher-risk loans. But broader market volatility caused by U.S. President Donald Trump's aggressive stance on tariffs has led to slower dealmaking in private markets in general, raising some concerns there may be a mismatch between money available for private lending and not enough places to invest it. Investors may also look for any signs regarding succession at the firm. Fink, 72, has led BlackRock since co-founding it in 1988. A recent wave of senior executive departures has reignited speculation about his eventual successor, even as Fink has signaled no immediate plan to step down. 'The firm would do itself a favor by highlighting the depth and breadth of their management bench, particularly since the company's business model is expanding and potentially becoming more complex,' said Seifert. (Reporting by Davide Barbuscia in New York and Arasu Kannagi Basil in Bengaluru; editing by Megan Davies, Nia Williams and Maju Samuel)
