BlackRock's Record AUM and Earnings: A Quarter of Growth and Acquisitions

BlackRock, the world's largest asset manager, has reported a quarter of record-breaking growth and acquisitions, with assets under management (AUM) reaching an all-time high of $11.6 trillion. The company's strong performance in the fourth quarter of 2024 was driven by positive market movements, strategic acquisitions, and record net inflows.



BlackRock's AUM growth can be attributed to several factors, including the positive impact of markets on average AUM, organic base fee growth, and higher performance fees. The company's strategic acquisitions, such as Global Infrastructure Partners (GIP) and planned acquisitions of HPS Investment Partners and Preqin, have also contributed to its record AUM and earnings growth.

The GIP acquisition, closed on October 1, 2024, added $116 billion of client AUM and $70 billion of fee-paying AUM to BlackRock's portfolio. This acquisition helped BlackRock's AUM reach a record high of $11.6 trillion in the fourth quarter of 2024. The GIP acquisition is expected to add approximately $250 million of management fees in the fourth quarter of 2024, contributing to BlackRock's earnings growth.

BlackRock's record net inflows of $281 billion for the fourth quarter and $641 billion for the full year 2024 reflect the company's strong performance and attractiveness to investors. The company's diversified investment portfolio, which includes equity securities, fixed-income assets, cash, and alternative investments, has appealed to clients across various regions and product types.



BlackRock's Chairman and CEO, Laurence Fink, stated that the company enters 2025 with more growth and upside potential than ever. The company's strategic focus on private markets, driven by acquisitions such as GIP and HPS Investment Partners, has expanded its investment capabilities and attracted record net inflows.

In conclusion, BlackRock's record AUM and earnings growth in the fourth quarter of 2024 can be attributed to positive market movements, strategic acquisitions, and record net inflows. The company's diversified investment portfolio and expanded private markets capabilities have contributed to its strong performance and attractiveness to investors. As BlackRock enters 2025, it is well-positioned for continued growth and success in the asset management industry.