BlackRock's performance report released on Tuesday (July 15) pointed out that its investment funds netted US$68 billion in the second quarter, including US$22 billion in cash management and money market funds, and another US$9.8 billion was inve...
BlackRock's performance report released on Tuesday (July 15) pointed out that its investment funds netted US$68 billion in the second quarter, including US$22 billion in cash management and money market funds, and another US$9.8 billion was invested in alternative investments. Overall, the company has attracted $29 billion and $85 billion in new funds in stock and exchange-traded funds (ETFs), respectively.
Through these mergers and acquisitions, BlackRock currently manages more than $600 billion in alternative investment assets. The company has also set a goal to raise another $400 billion in private equity by 2030.
As of Monday, BlackRock shares rose 8.4% this quarter, higher than the S&P 500's 6.6%.
BlackRock's adjusted earnings per share increased by 16% year-on-year to $12.05, exceeding market expectations of $10.87; revenue increased by 13% to $5.4 billion, benefiting from higher expense revenue and market recovery brought by infrastructure investment. However, some of the growth was offset by lower performance expenses.
BlackRock, the world's largest asset management company, achieved a record $125 trillion (about S$16 trillion) in the second quarter of this fiscal year.
As one of the actions to vigorously expand the private equity market in recent years, BlackRock completed the acquisition of private lending company HPS Investment Partners this quarter, with a transaction value of US$12 billion. This is the third major merger and acquisition transaction conducted by BlackRock in the past 18 months, with a cumulative transaction amount of US$28 billion, including the previously acquired Global Infrastructure Partners and private equity data company Preqin.
However, the net inflow of long-term investment was $46 billion, slightly lower than analysts' original expectations of $61 billion, mainly because an institutional client redeems $52 billion from a low-cost index product.
BlackRock President Larry Fink said in a statement: "Our continuous expansion of customer relationships is reflected in the higher and diversified organic base fee growth."
