Today, it is a juggernaut widely used in the money management industry and beyond. In 1999, BlackRock started selling Aladdin, which analyses and tracks investors' portfolios and can help professional money managers spot risks. It runs a massive technology platform that oversees at least $21.6 trillion in assets. It also has a sprawling alternative investments business that oversaw some $265 billion in assets under management as of December, managing products across private equity, private credit, and hedge funds. Nearly 60% of its overall assets under management are for institutional investors, most of which are products linked to stock markets. Meanwhile Michael Pyle, BlackRock's former global chief investment strategist who had worked in the Obama administration before joining the firm, serves as chief economic advisor to Vice President Kamala Harris.īut unlike Goldman Sachs, a household brand name synonymous with executives leaving finance to go shape public policy, BlackRock isn't as well-known to people outside the investment industry. Biden also tapped Adewale "Wally" Adeyemo, a former chief of staff to BlackRock chief executive and longtime Democrat Larry Fink, to serve as a top official at the Treasury Department. The firm has hired notable policy-makers over the years, and at least three leaders with the New York-based asset manager on their resumes now hold prominent roles in President Joe Biden's cabinet.įormer BlackRock investment executive Brian Deese leads Biden's National Economic Council, effectively serving as his top advisor on economic matters. It often indicates a user profile.īlackRock, the world's largest investment manager, has become an increasingly influential Wall Street player in Washington, DC. "The most important thing, I will assure you, is a process of testing ourselves and really ask ourselves how should we evolve our business model to best serve our clients," he said.Account icon An icon in the shape of a person's head and shoulders. Shares in BlackRock were up nearly 2% following BlackRock's executives comments and expectations that a Federal Reserve pause on rate hikes will benefit asset managers.įink talked about potential inorganic growth opportunities for the firm that would be “transformational,” a concept he had already expressed in April, adding possible areas to expand the firm's footprint could include data, information, technology, or could be related to distribution. Last year, the private markets area posted $1 billion in revenues. The firm manages $320 billion in alternative assets, such as real estate, private credit and infrastructure. "We're firm believers we'll double our revenues in next five years," he said. Private markets will play an important role in BlackRock's growth in the future, according to Edwin Conway, global head of equity private market, as investors will seek diversification beyond debt and equities. Still, the firm sees its market share in fee revenue reach 3.1% from 2.8%. As a result, succession at BlackRock takes on an added significance," said Cathy Seifert, vice-president at research firm CFRA.īlackRock's top executives said the company is keeping an eye on acquisitions and targets a 5% organic base fee revenue growth between 2023-2027, the same pace it grew between 20. "BlackRock is at a bit of a strategic inflection point as it seeks to ramp up growth and meet client needs. Now, investors and analysts have begun to question who will next take the helm of the New York-based asset manager. "I have no higher priority than developing the next generational leaders for BlackRock," he said at the firm's investors day event.įink co-founded BlackRock in 1988 along with seven partners. NEW YORK, June 14 (Reuters) - BlackRock Inc (BLK.N) chairman and Chief Executive Officer Larry Fink said on Wednesday he is not planning to leave the world's biggest asset manager "any time soon," while his team unveiled plans for revenue growth.įink, 70, said he has no plans to retire, but BlackRock still has been planning for his succession.
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