BlackRock assets hit record $11.6 trillion in fourth quarter

By Davide Barbuscia

NEW YORK (Reuters) -BlackRock posted a 21% fourth quarter jump in profit after buoyant equity markets increased income from fees and drove its assets to a record high of $11.6 trillion, the world's largest money manager said on Wednesday.

Assets managed by the New York-based company increased to $11.55 trillion from $10.01 trillion a year earlier and $11.48 trillion in the third quarter.

The growth was partly driven by a U.S. stock market rally after Donald Trump's presidential election victory in November prompted investors to bet on lower corporate taxes and deregulation.

BlackRock's quarterly results complete a banner year for the asset manager, which has sought to strengthen its position in rapidly growing private markets. It spent about $25 billion last year on infrastructure investment fund Global Infrastructure Partners and private credit business HPS Investment Partners.

"For many companies, periods of M&A contribute to a pause in client engagement. At BlackRock, clients are instead embracing and rewarding our strategy," CEO Larry Fink said in a statement on Wednesday.

Net income rose to $1.67 billion, or $10.63 per share, in the three months to Dec. 31 from $1.38 billion, or $9.15 per share, a year earlier.

BlackRock registered $201 billion in long-term net inflows in the fourth quarter. Total net inflows hit $281.4 billion, up from $95.6 billion a year ago.

A majority of the long-term inflows were captured by exchange-traded funds (ETFs), at $142.6 billion. Clients poured $23.8 billion into BlackRock's fixed-income products.

The benchmark S&P 500 index gained 2.1% in the fourth quarter and finished the year up 23.3%, marking its second straight year of gains exceeding 20%.

"Strong asset inflows this quarter contributed to a record-setting year for BLK," said Kyle Sanders, senior equity research analyst at Edward Jones.

This, he said, "should boost investor confidence that the long-awaited great rotation, where investors move off the sidelines and start to 're-risk' by investing in equity and fixed income products, is beginning to materialize."

Shares of the company were up nearly 4% at $1,000 in early trading on Wednesday.

'NOT FEELING ANY OLDER'

BlackRock in June struck a $3.2 billion deal to acquire UK data provider Preqin as it seeks to offer indexes for private markets.

Initially, BlackRock anticipated finalizing the Preqin deal by the end of 2024, but Britain's competition regulator last month launched a probe into the transaction and has set Feb. 12 as the deadline for a decision on the first leg of that review.

BlackRock's Chief Financial Officer Martin Small said on Wednesday he now expected the deal to close in the first quarter of 2025, while the HPS deal should close within the first half.

BlackRock's private markets buying spree may not be over, with the asset manager expected to opportunistically expand further in private credit, real estate, infrastructure, or possibly private equity, Reuters has reported.

In a CNBC interview on Wednesday, though, Fink said it was unlikely the company would buy whole companies.

Separately, and confirming earlier reports, Fink also said on Wednesday BlackRock senior executive Mark Wiedman, previously touted as a possible Fink successor, is leaving. Fink added many leaders were taking on new, expanded roles.

Wiedman said in an email he would stay with the firm for the next few months and then work out his next move.

Another executive, Salim Ramji, left BlackRock in January 2024 and went on to become the CEO of asset management company Vanguard Group. Ramji was also once touted as a potential successor to Fink, who is 72 years old.

BlackRock's earnings call on Wednesday was Fink's 100th.

"I can't say I feel any older," he said.

(Reporting by Davide Barbuscia in New York, Arasu Kannagi Basil and Jaiveer Shekhawat in Bengaluru; editing by David Goodman, Jan Harvey, Jason Neely and Barbara Lewis)