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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)
Zawya
12-06-2025
- Business
- Zawya
Private market push in focus as BlackRock hosts investor day
NEW YORK: BlackRock will hold an investor day on Thursday that is expected to provide insight into the asset management 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. "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. BlackRock declined to comment on the focus of its investor day. Private assets generate significantly higher fees than exchange-traded funds (ETFs), a core part of BlackRock's business through its iShares franchise. 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.
Reuters
12-06-2025
- Business
- Reuters
Private market push in focus as BlackRock hosts investor day
NEW YORK, June 12 (Reuters) - BlackRock (BLK.N), opens new tab will hold an investor day on Thursday that is expected to provide insight into the asset management 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. "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. BlackRock declined to comment on the focus of its investor day. Private assets generate significantly higher fees than exchange-traded funds (ETFs), a core part of BlackRock's business through its iShares franchise. 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.
