BlackRock, the world’s largest asset manager, reported a record-breaking $11.48 trillion in assets under management (AUM) for the third quarter of 2024. This marked the third consecutive quarter of growth. This increase was largely attributed to surging inflows into the firm’s exchange-traded funds (ETFs), including the IBIT Bitcoin ETF. Also, a strong equity market rally that boosted the value of client investments.
BlackRock AUM Surges Beyond $11 Trillion
Despite a market sell-off in August, stock markets rebounded in the third quarter, driven by optimism that the U.S. economy could avoid a hard landing. Lower-than-expected inflation data fueled this hope, contributing to the overall market rally.
The $11.48 trillion in AUM reflects a significant jump from the $9.10 trillion recorded a year ago and an increase from $10.65 trillion in the previous quarter. Larry Fink, chairman and CEO of BlackRock, commented on the company’s growth and offered optimism. He stated, “Our strategy is ambitious, and our strategy is working.”
BlackRock’s performance was further boosted by its recent acquisition activity. In early October, the firm completed its $12.5 billion acquisition of Global Infrastructure Partners (GIP), adding over $100 billion in infrastructure-related assets to its portfolio.
Moreover, the asset manager is also expected to finalize its $3.2 billion acquisition of private markets data provider Preqin later this year. This will further expand its presence in private markets.
A Close Look at CEO Statement
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Fink emphasized the strategic importance of these acquisitions, noting, “We’re already seeing the power of BlackRock and GIP together as we drive access to the enormous investment potential of infrastructure, especially to support AI innovation.”
He also highlighted the importance of Preqin acquisition. Fink stated that the acquisition would “enhance data and risk analytics needed to support growing private markets allocations.”
For further context, the firm saw net inflows of $221.18 billion in the third quarter, a significant increase compared to the $2.57 billion reported in the same period last year. Long-term inflows accounted for $160 billion, while ETFs alone captured $97.41 billion of this total, according to the recent earnings report.
Meanwhile, the asset manager’s fixed-income products also saw strong demand, with $62.74 billion in net inflows during the quarter. While asset managers have faced challenges in recent years due to rising interest rates and investor caution, BlackRock’s results suggest a shift in market sentiment.
Investors, who had previously opted for safer assets like cash, are now moving back into riskier investments such as fixed-income products. It also includes the IBIT Bitcoin ETF that registered robust inflows lately. The Federal Reserve’s anticipated move toward an easing cycle has further encouraged this trend.
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