BlackRock Tops Peregrine Global 100 2025 Report as Private Markets Face Growing Scrutiny

The Peregrine Global 100 2025 Report finds BlackRock leading the rankings, followed by Fidelity Investments, Capital Group, T. Rowe Price, and Aviva Investors. Private markets firms are gaining prominence, with 15% of the top 20 in the rankings. However, brand awareness remains stagnant for 45% of the industry, and private markets firms face growing media scrutiny with 88% scoring below-average media sentiment. Category authority drives growth, with a correlation between distinctiveness and AUM expansion.

BlackRock, the world's largest asset manager, reported record assets under management (AUM) of $13.5 trillion at the end of the third quarter, driven by robust inflows into exchange-traded funds (ETFs), private markets, and cash strategies. The New York-based firm saw $205 billion in net inflows for the quarter, with its iShares ETF business surpassing $5 trillion in assets for the first time, according to InvestmentNews.

The quarter highlighted broad-based growth, with net inflows into long-term investment funds totaling $171 billion, outpacing analyst expectations. BlackRock's adjusted earnings per share rose 1% year-over-year to $11.55, while revenue climbed 25% to $6.5 billion. Growth was especially strong in ETFs and alternatives, with investors adding $153 billion on a net basis to stock, bond, and other ETFs. The firm's alternatives platform, which includes private credit, real estate, and infrastructure, expanded to $663 billion in client assets, nearly doubling from $334 billion a year earlier.

Chief executive Larry Fink described the quarter as one of the firm’s strongest for flows, highlighting the diversity of growth across ETFs, private markets, digital assets, and outsourcing. The firm's technology and digital assets business also contributed to growth, with technology services and subscription revenue up 28% year-over-year. BlackRock is investing heavily in digital asset technology, aiming to eventually allow investors to access long-term investments via blockchain.

Despite the positive momentum, BlackRock's net income on a GAAP basis fell 19% to $1.32 billion, reflecting higher costs tied to acquisitions and integration. The company's operating margin, as adjusted, was 44.6% for the quarter, compared with 45.8% a year earlier. Looking ahead, BlackRock is targeting further expansion in private markets, with a stated goal of raising $400 billion in additional capital by 2030.

Meanwhile, Victory Capital (NASDAQ: VCTR), another global asset manager, has seen significant growth following its acquisition of Amundi SA. The deal, completed in April, has boosted Victory Capital's AUM by $114.6 billion overnight and resulted in a 60% increase in revenue to $351.2 million in Q2, according to Seeking Alpha.

The acquisition has led to a significant increase in revenue, but it has also come with higher expenses. Operating expenses for Victory Capital were $257 million for the quarter, more than double the prior quarter. However, the company expects these expenses to normalize as the integration of Amundi is finalized. Victory Capital's operating margin dropped from 50.4% to 26.8% year-over-year, but the company remains optimistic about its long-term prospects.

In conclusion, BlackRock and Victory Capital have both reported strong performance in the third quarter, driven by growth in ETFs, private markets, and digital assets. While both firms face challenges in integrating new acquisitions and managing expenses, their strong fundamentals and strategic moves position them well for future growth.