BlackRock recently announced that its assets under management (AUM) reached a record $12.5 trillion in the second quarter, driven by $46 billion in net inflows to its investment funds amidst market volatility related to President Trump’s tariff policies.
Investors contributed $85 billion to exchange-traded funds (ETFs) and $29 billion to the equities market. However, net flows into long-term investments fell short of expectations, primarily due to a single institutional client redeeming $52 billion from a lower-fee index product. Overall, BlackRock’s net flows totaled $68 billion, including $22 billion in cash management and money market funds.
The quarter experienced market turbulence, with volatility reminiscent of the 2008 financial crisis and the 2020 pandemic. This eased when President Trump announced a 90-day pause on tariffs, prompting a swift recovery in the stock and bond markets.
After the quarter ended, BlackRock completed its $12 billion acquisition of HPS Investment Partners, marking its third major purchase in 18 months. This is part of a $28 billion buying spree that includes Global Infrastructure Partners and private markets data firm Preqin. With these acquisitions, BlackRock will manage over $600 billion in alternative investments and aims to raise an additional $400 billion by 2030.
KEY QUOTES:
“For many years, BlackRock has worked to serve the ambitions of each and every client around the world – from the largest asset owners to individuals just getting their start with investing. We design and deliver strategies and products that fit their unique long-term needs and aspirations. We deliver in the way that best serves each client, whether it’s through whole portfolio solutions, opportunistic investments, or customized models and SMAs.”
“Our expanding client relationships are resonating in higher, more diversified organic base fee growth. We generated 6% organic base fee growth for the second quarter and the first half of 2025, and 7% over the last twelve months.”
“BlackRock’s sustained growth has been powered by our whole portfolio approach, being the first firm to bring together active and index at scale. And now we’re building on our foundational platform to redefine the whole portfolio once again by integrating public and private markets across asset management and technology.”
“iShares ETFs had a record first half in flows, and technology ACV growth reached a fresh high of 16%. This core strength, alongside client demand for private markets, digital assets, Aperio, and our tech and data-driven systematic strategies, propelled another consecutive quarter of above-target organic base fee growth and record AUM of $12.5 trillion.”
“We surpassed the fundraising target for GIP’s fifth flagship, raising $25.2 billion and delivering the largest-ever client capital raise in a private infrastructure fund. We announced the development of a custom target date fund glidepath that strategically allocates across public and private markets. And we’re attracting a new and increasingly global generation of investors through things like our digital assets offerings and recently launched funds in India through our joint venture Jio BlackRock.”
“Our comprehensive platform and the depth of our client relationships set us apart from traditional or private markets firms in the industry. Our recent closing of HPS will help us build even more with clients as we head into our seasonally strongest second half of the year. These are just the early days in our next phase of even stronger growth.”
Laurence D. Fink, Chairman and CEO
