BlackRock, the world’s largest asset manager, announced that its assets under management (AUM) surged to a record $10.65 trillion in the second quarter. This marks a nearly 13% increase from $9.43 trillion in the same period last year. The rise in AUM was driven by climbing client asset values and significant investments into the company’s exchange-traded funds (ETFs).
BlackRock’s earnings per share (EPS) grew to $9.99 from $9.06, while revenue increased by 7.7% to $4.8 billion. The company registered total net inflows of $81.57 billion during the quarter, with ETFs capturing the majority of these flows at $83 billion, marking their best start to a year on record.
Stock markets have recently reached new highs, fueled by optimism about the U.S. economy and enthusiasm for artificial intelligence-linked stocks. The benchmark S&P 500 index rose about 4% in the reported quarter, contributing to the boost in BlackRock’s AUM.
CEO Larry Fink highlighted BlackRock’s broad range of opportunities, including in private markets. Last month, BlackRock agreed to acquire data provider Preqin for nearly $3.2 billion, following a $12.5 billion deal to buy Global Infrastructure Partners earlier this year. These acquisitions underscore BlackRock’s strategy to strengthen its position in private markets and reduce reliance on low-fee generating iShares ETFs.
Investment advisory and administration fees, which are typically a percentage of AUM, rose by 8.6% to $3.72 billion. BlackRock is also recognized as the largest public holder of bitcoin through its iShares Bitcoin Trust (IBIT) ETF, which holds over 300,000 BTC. Shares of BlackRock rose 1.2% to $838 in pre-market trading following the announcement.
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