Strong Inflows and Equity Markets Drive 21% Profit Growth
BlackRock Inc., the world’s largest money manager, reported a record $11.6 trillion in assets under management (AUM) in the fourth quarter of 2024. The New York-based company saw a year-over-year increase from $10.01 trillion and a slight rise from $11.48 trillion in the previous quarter, driven by strong equity markets and investor inflows.
Profit and Inflows Surge
BlackRock’s net income rose by 21% to $1.67 billion, or $10.63 per share, compared to $1.38 billion, or $9.15 per share, a year earlier. The company registered $201 billion in long-term net inflows during Q4, bringing total inflows for the year to $281.4 billion, up from $95.6 billion in 2023. Exchange-traded funds (ETFs) captured $142.6 billion of these inflows, while fixed-income products attracted $23.8 billion.
Strategic Growth in Private Markets
In 2024, BlackRock strengthened its foothold in private markets, investing $25 billion in Global Infrastructure Partners and HPS Investment Partners. CEO Larry Fink highlighted client support for BlackRock’s strategy, stating, “Clients are embracing and rewarding our approach.”
Market Performance and Outlook
The S&P 500 index rose 2.1% in Q4 and gained 23.3% for the year, fueling client investments. The MSCI World Index, though down 1.2% in Q4, recorded a 15.7% yearly gain. Analysts believe BlackRock’s record performance reflects the “great rotation,” as investors move back into equity and fixed-income products.
Shares of BlackRock were up 2% in premarket trading, signaling strong investor confidence.
