BlackRock sees $7.1bn of inflows into private markets in Q1

BlackRock attracted $84bn (£64.1bn) of inflows in the first quarter of 2025, of which $7.1bn was channelled into private markets.

The world’s largest asset manager reported a six per cent rise in fees over the quarter, driven by private markets, exchange-traded funds (ETFs) and systematic active strategies.

Revenue rose by 12 per cent year-on-year to $5.3bn, while assets under management rose by 11 per cent to $11.6tn.

“We’ve intentionally shaped our platform to serve clients in all market environments, building a premier global public-private markets investment and technology firm,” said BlackRock chairman and chief executive Larry Fink.

“We have leading franchises in categories that we expect to benefit from capital flows and investment even against volatile public markets. These include our newly enriched private markets platform, ETFs, and Aladdin risk management and technology.”

However, profits fell by four per cent year-on-year to $1.5bn, or $9.64 per share, missing market expectations.

The world’s largest asset manager attributed the decline to expenses relating to its $30bn of acquisitions last year, as it diversifies away from its core public equity business to private markets.

However, adjusting for those costs, profits rose by 20 per cent to $1.8bn, beating analysts’ forecasts.

“BlackRock’s first quarter of 2025 results showed off its differentiated position as a distributor and product developer, joining public and private asset classes with technology and its capital reach,” said Neal Epstein, vice president of private credit, Moody’s Ratings.

“In turbulent markets, BlackRock’s scale will continue to anchor its credit strength.

“BlackRock’s organic revenue flow rate was six per cent for the quarter, an impressive result, demonstrating how its growing share of private assets is raising the earnings power of its assets under management.”