BlackRock has reported a record third quarter, with total net inflows of $205bn (£154.7bn), driven in part by demand for private markets, which attracted $13.2bn in inflows.
At the end of September, assets under management (AUM) in private markets had grown to $320.9bn, up from $215.2bn at the end of June this year, with the firm’s overall AUM reaching a record high of $13.5tn.
Within private markets, private credit saw net inflows of $7.9bn, while inflows into infrastructure were $2.9bn.
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The global asset manager recorded 10 per cent annualised organic base fee growth in the third quarter, which it said “reflects broad-based strength” across iShares ETFs, systematic active equities, private markets, outsourcing and cash.
In the third quarter, BlackRock recorded a 25 per cent increase in revenue year-over-year, citing the “positive impact” of markets, an eight per cent organic base fee growth over the past 12 months, fees related to the GIP and HPS Transactions, and higher technology services and subscription revenue.
BlackRock closed its acquisition of HPS Investment Partners (HPS) on 1 July, adding $165bn of client AUM and $118bn of fee-paying AUM.
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Larry Fink, chair and chief executive of BlackRock, called the firm’s third quarter growth “notable in its diversification”.
“Top organic base fee growth contributors included our systematic franchise, private markets, digital assets, outsourcing, cash and iShares ETFs, which saw record demand,” he said.
“BlackRock’s multiple sources of growth differentiate us and are resonating through accelerating client activity across our platform. We believe our results are a powerful validation of our hyper-local client engagement model and forward-looking investments.”
Fink added: “Technology and data analytics, ETFs, private markets, and digital assets are just a few examples where we invested and built leading positions.”
BlackRock has previously announced it is targeting $400bn of cumulative fundraising in private markets between now and 2030, as part of an ambitious plan to boost total revenue to $35bn, with private markets and technology to account for 30 per cent of total revenue.
In July, BlackRock revealed it is acquiring ElmTree Funds, a net-lease real estate investment firm, that will be integrated into its new private markets business created after the HPS acquisition.
