BlackRock’s Assets Surge to Record $10.6 Trillion Amid Market Boom

• BlackRock’s assets hit a record $10.65 trillion in Q2, driven by ETF popularity and market gains.
• The company plans strategic acquisitions in infrastructure and private markets, aiming for continued growth.

BlackRock reached another milestone during the second quarter, as its assets under management grew to a new record $10.65 trillion. The growth was fueled by an increase in the value of client assets and a booming interest by investors for its exchange-traded fund (ETFs). Its S&P 500 index rose approximately 4% in the last period, which contributed to the company’s increasing assets by $9.43 trillion in the previous year as well as $10.5 trillion during the prior quarter.

In the future, BlackRock anticipates completing two deals in the last quarter of this year, to increase its private market infrastructure and presence. Larry Fink, BlackRock’s chairman and CEO, expressed confidence regarding the future opportunities for growth, specifically in energy transitions as well as AI (AI) Data centers.

In the last few days, BlackRock announced plans to purchase Preqin, which is a private market information provider, for $3.2 billion. The acquisition follows the $12.5 billion agreement earlier this year to acquire Global Infrastructure Partners, reinforcing BlackRock’s dedication to alternative assets and infrastructure-related projects around the globe.

Kyle Sanders, senior equity research analyst for Edward Jones, highlighted the attraction of private markets because of the possibility of higher fees in comparison to ETFs that are traditional. He emphasized the shift of BlackRock toward products with higher margins, such as alternatives.

In the second quarter of 2018, BlackRock announced Net Inflows $81.57 billion. ETFs leading the pack with an inflow of $83 billion and their most successful start to the year so far in history. BlackRock also highlighted the growing demand for fixed income securities to help investors in global markets navigate the changing economy.

In spite of initial volatility in the value of its stock, BlackRock remains optimistic, thanks to its growth in administrative and investment advisory fees that increased 8.6% to $3.72 billion. Technology-related revenue such as the Aladdin portfolio risk management system which grew by 10%, climbed 10% up to 395 million.

All in all, the total revenue for BlackRock increased by eight% in the year to $4.81 billion. Net earnings increased to $1.50 billion (or $9.99 per share from $1.37 billion which is $9.06 per share one year ago. Cathy Seifert, vice president of CFRA Research, noted investor hopes for increased revenue which reflects the company’s high valuation in its group of peers.

Overall, the record-breaking performances highlight the company’s strong standing in asset management globally that is fueled by strategic acquisitions as well as sustained trust from investors in its wide range of portfolio of investment options.