Global asset manager BlackRock announced record third-quarter results on Tuesday, driven by robust client inflows of approximately $205 billion across its platform. This performance, fueled by strong demand for its iShares ETFs and private market products, propelled the firm’s total assets under management (AUM) to a new all-time high of $13.46 trillion.
The news exceeded Wall Street’s expectations, with the firm reporting adjusted earnings of $11.55 per share, beating the average analyst estimate of $11.31. And revenue also surpassed forecasts, jumping 25% year-over-year to $6.51 billion.
Some of the key drivers included:
— Record ETF inflows: BlackRock’s iShares ETF business saw exceptional demand, contributing significantly to the quarter’s results
— Expansion in alternative assets: The company noted strength in private markets, digital assets, and outsourcing, indicating growing client interest in these areas.
— Strategic acquisitions: The closure of the HPS Investment Partners acquisition in July added $165 billion in client AUM, further boosting the firm’s assets.
KEY QUOTES:
“BlackRock delivered one of our strongest quarterly flows results, with net inflows of $205 billion, powering 10% organic base fee growth in the third quarter and 8% over the last twelve months. That growth is even more notable in its diversification.”
“Top organic base fee growth contributors included our systematic franchise, private markets, digital assets, outsourcing, cash and iShares ETFs, which saw record demand. BlackRock’s multiple sources of growth differentiate us and are resonating through accelerating client activity across our platform. We believe our results are a powerful validation of our hyper-local client engagement model and forward looking investments.”
“BlackRock is always preparing for the future, investing ahead of client needs and in support of deepening capital markets. Technology and data analytics, ETFs, private markets, and digital assets are just a few examples where we invested and built leading positions. We’ve brought together the strengths of GIP, HPS, and Preqin, and together we’re already driving landmark fundraising and deal flow, accelerating client engagement, and double-digit organic revenue growth over the last year.”
“Clients around the world are coming to BlackRock for deeper, more dynamic partnerships across public and private asset classes. AUM reached a new high of $13.5 trillion, and our iShares and cash franchises surpassed new AUM milestones of $5 trillion and $1 trillion, respectively.”
“We’re executing on some of the largest and most multifaceted mandates in our history, as clients choose BlackRock for portfolio management and technology across the full range of capital markets.”
“We’re entering our seasonally strongest fourth quarter with building momentum and a fully unified platform. One that’s anchored by a public-private investment model, backed by Aladdin technology, and united by a shared culture of performance and client service. I believe the scale of the opportunity ahead for BlackRock, our clients and shareholders far exceeds what we’ve ever seen before.”
Laurence D. Fink, Chairman and CEO
