BlackRock hits record $10.6 trillion in assets under management

BlackRock, the world’s largest asset manager, posted a milestone in its second quarter financial results as assets under management (AUM) surpassed $10 trillion.

The company reported AUM of $10.6 trillion, up 13% from $9.43 trillion a year earlier.

BlackRock Q2 performance

According to the report, BlackRock’s earnings per share (EPS) rose to $9.99 from $9.06 a year earlier, and revenue rose 7.7% to $4.8 billion. Total revenue for the quarter grew 8% to $4.81 billion, while net income increased to $1.5 billion.

The company reported total net inflows of $139 billion in the first half of the year, including a record quarterly net inflow of $82 billion for BlackRock ETFs. Advisory and investment management fees, typically a percentage of AUM, rose 8.6% to $3.72 billion. Technology services revenue also rose 10% to $395 million, driven by strong demand for its investment risk management platform, Aladdin.

BlackRock also has the largest public position in Bitcoin through its iShares Bitcoin Trust (IBIT) ETF, which now holds more than 300,000 BTC. In a muted response to the company’s second-quarter earnings release, the asset manager’s share price fell 0.028% in premarket trading on Monday.

Larry Fink, chairman and CEO of the asset manager, commented: “BlackRock is executing the broadest set of opportunities we’ve seen in years, including private markets, Aladdin and whole portfolio solutions in both ETFs and assets “.

Last month, BlackRock agreed to acquire data provider Preqin in a deal valued at nearly $3.2 billion. This acquisition will enhance BlackRock’s private markets capabilities by offering integrated investments, technology and data across the portfolio.

The company is on track to complete its planned acquisition of Global Infrastructure Partners in the third quarter of 2024. This acquisition is expected to double private market base rates and add approximately $100 billion of infrastructure AUM.

BlackRock shares lag the S&P 500’s gains

Meanwhile, the broader stock market has hit record highs in recent months, driven by growing optimism for a soft landing for the US economy and enthusiasm for AI-related stocks.

The benchmark S&P 500 rose 11% in the reported quarter, contributing to BlackRock’s AUM growth. Despite this, BlackRock shares are up just 3.4% so far this year, underperforming the S&P 500’s 18.4% gain.

However, the company remains optimistic about its growth prospects. Fink emphasized, “BlackRock is defining a unique and integrated approach to private markets, spanning investment, technology workflows and data. We believe this will deepen our client relationships and deliver value to our shareholders through growth organic primary and diversified income”.

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