BlackRock Slumps 0.96% as $0.47 Billion Volume Ranks 172th Amid Private Credit Headwinds

On August 25, 2025, BlackRock (BLK) fell 0.96% with a trading volume of $0.47 billion, ranking 172nd in market activity. The decline followed developments in its private credit strategy and broader market challenges.

BlackRock has temporarily halted fundraising for its $1 billion Asia-Pacific private credit fund, launched in late 2023, after acquiring HPS Investment Partners in December. The firm has secured less than half of its target amid ongoing internal discussions with HPS executives to align strategic priorities. This pause reflects broader headwinds in the private credit sector, including slower deal activity, rising U.S. tariffs limiting cross-border opportunities, and climbing default rates. JPMorgan data shows fundraising for private credit reached just $70 billion through July 22, the smallest share of alternative asset inflows since at least 2015.

The HPS acquisition, central to CEO Larry Fink’s plan to expand BlackRock’s private markets business, faces execution risks. Recent challenges include ending a partnership with Abu Dhabi’s Mubadala Investment Co. due to difficulty sourcing deals. Investors remain cautious as Arch Capital Group, a key backer, explores selling stakes after underperformance in some funds and senior departures. Strategic clarity on the Asia-Pacific fund remains pending, with no timeline set for resuming fundraising.

Backtesting of a strategy buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 showed a 31.52% total return over 365 days, with a 1-day return of 0.98%. The Sharpe ratio was 0.79, indicating favorable risk-adjusted performance. The highest daily gain reached 4.95%, while the lowest loss was -4.47%.