BlackRock Sets Ambitious Target: 30% Revenue from Private Markets and Tech by 2030

BlackRock plans to generate 30% of its revenue from private markets and technology by 2030. CEO Laurence D. Fink emphasized the company's ongoing transformation, combining public and private markets. The HPS acquisition has closed, and BlackRock is redefining its portfolio with a focus on these areas.

BlackRock, Inc. (BLK) has outlined a strategic plan to generate 30% of its revenue from private markets and technology by 2030. The company's CEO, Laurence D. Fink, emphasized the ongoing transformation of BlackRock's portfolio, combining public and private markets to redefine its offerings. The recent acquisition of HPS Investment Partners has closed, adding $165 billion in client AUM and $118 billion in fee-paying AUM, further solidifying BlackRock's position in these areas [1].

In the second quarter of 2025, BlackRock reported record financial performance with a 13% year-over-year increase in revenue to $5.4 billion, driven by robust inflows and the successful integration of acquisitions. The company's operating income and earnings per share also saw double-digit growth, highlighting the positive impact of the HPS and GIP acquisitions on BlackRock's bottom line [1].

The acquisition of HPS is expected to contribute approximately $450 million in revenue in the third quarter of 2025, with a significant portion coming from management fees. This acquisition is part of BlackRock's broader strategy to diversify its revenue streams and increase its effective fee rate. The company also expects the integration of HPS to positively impact its overall effective fee rate by approximately 0.6 basis points [1].

BlackRock's focus on private markets and technology is not limited to acquisitions. The company is also investing in organic growth initiatives, such as expanding its product offerings in digital assets, active ETFs, and systematic strategies. The company's digital assets and technology services revenue increased by 26% year-over-year in the second quarter, underscoring the growth potential in these areas [1].

Despite the challenges posed by increased expenses and fee rate pressures, BlackRock remains confident in its ability to maintain strong margins and scale new offerings. The company's management has outlined a deliberate strategy to align expenses with organic growth and maintain operating leverage, while remaining attentive to integration risks and regulatory approvals [1].

In conclusion, BlackRock's ambitious plan to generate 30% of its revenue from private markets and technology by 2030 is supported by a strong track record of strategic acquisitions, organic growth initiatives, and a commitment to cost discipline. As the company continues to integrate its recent acquisitions and expand its product offerings, investors can expect BlackRock to remain a key player in the asset management industry.

References:
[1] https://seekingalpha.com/news/4467573-blackrock-outlines-path-to-30-percent-revenue-from-private-markets-and-technology-by-2030-as