BlackRock's Assets Surge to Record $11.6 Trillion in Q4; Stock Rises

BlackRock, the world's largest asset manager, reported a record high of $11.65 trillion in assets under management (AUM) at the end of the fourth quarter, up 15% from $10.01 trillion in the period a year ago and an increase from $11.48 trillion in the third quarter, according to a Jan. 15 earnings release. The firm also pointed to the positive impact of markets on assets under management (AUM) and strong net inflows as key drivers behind the growth.

Laurence D. Fink, chairman and CEO, partly attributed the growth to client activity accelerating "into the fourth quarter, resulting in 7% organic base fee growth and 12% technology services ACV growth," according to the news release. The firm also reported $641 billion of full year net inflows in 2024, including $281 billion during the fourth quarter, according to the release.

In the fourth quarter, long-term net inflows totaled $201 billion. By client type, ETFs saw total net inflows of $143 billion, institutional attracted $53 billion, and retail had $5 billion in net inflows during the final quarter of 2024. Cash management strategies attracted $81 billion in net inflows during the fourth quarter.

By investment style, ETFs accounted for 37% of assets under management followed by index products at 30%, active products at 25%, and cash at 8% at the end of the fourth quarter.

In 2024, BlackRock was on an acquisition spree to build up its capabilities in private markets. The firm finalized its acquisition of Global Infrastructure Partners and announced it would acquire private credit firm HPS Investment Partners and private markets data provider Preqin.

Fink noted in the earnings release that 2024 was "a milestone year for strategic acquisitions grounded in client service, technology and scale. Our closing of GIP and planned acquisitions of HPS and Preqin are expected to significantly scale and enhance our private markets investment and data capabilities."

BlackRock's stock rose about 2.3% an hour before the opening bell Friday, following the release of its earnings results. The investment manager's AUM surged $1.4 trillion year-over-year to $10.47 trillion, on the back of $57 billion of quarterly total net inflows, after accounting for seasonal withdrawals by clients. Blackrock's ETFs together saw net inflows more than triple to $67.24 billion compared to the same period last year, with roughly $14 billion flowing into its iShares Bitcoin Trust (IBIT).

The company reported net income of $1.57 billion or earnings of $10.48 per diluted share. After adjustments, net income stood at $1.47 billion and adjusted diluted EPS was $9.81, both better than what analysts predicted and roughly 23% higher than the year-ago quarter. Revenue grew 11% to $4.73 billion as rising stock markets not only boosted AUM but also fees the company earned on trading and investment advisory services.

"Organic asset and base fee growth accelerated into the end of the quarter, and first quarter long-term net inflows of $76 billion already represent nearly 40% of full year 2023 levels," BlackRock CEO Larry Fink said in a press release. "BlackRock's operating model delivered exceptional performance in a year of meaningful change. We crossed $20 billion of annual revenue, up 14% from 2023. As adjusted operating income grew by 23%, and our industry-leading margin of 44.5% was up 280 basis points."

BlackRock's strong performance in the fourth quarter and full year 2024 highlights the firm's ability to attract and retain clients, as well as its strategic acquisitions and organic growth initiatives. With a record AUM and strong net inflows, BlackRock is well-positioned to continue its growth trajectory in 2025.