Donohoe to Retain Eurogroup Role to Push Currency's Ascendancy
Rival candidates Carlos Cuerpo of Spain and Lithuania's Rimantas Sadzius pulled out of the race, leaving Donohoe as the only candidate ahead of a vote later Monday.
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BLK Acquires HPS Investment: Is it Riding on Private Credit Growth?
BlackRock Inc. BLK has announced the completion of the acquisition of HPS Investment Partners (HPS). The move signals the company's deeper foray into the private credit market, which is rapidly emerging as one of the most lucrative sectors in global credit is reshaping financial markets, accelerating the convergence of public and private markets. Capital markets are becoming the main avenue for financing, enabling asset managers to align long-term capital with investors like insurers, pension funds, sovereign wealth funds and capitalize on these opportunities, BlackRock is launching Private Financing Solutions (PFS), a platform that integrates its leading private credit, GP, and LP solutions, and both private and liquid CLO December 2024, at the time of agreement, it was projected that the buyout would increase BlackRock's private markets fee-paying assets under management (AUM) and management fees by 40% and 35%, respectively. Additionally, the deal is expected to be modestly accretive to BlackRock's adjusted earnings per share in the first year following the close. Further, it was estimated that in 2025, HPS is expected to add approximately $850 million of the base fee and nearly $360 million of post-tax Fee-related earnings (FRE) at a 50% line with its efforts to enhance private credit capabilities, during its Investor Day conference last month, BLK announced plans to expand into private markets. It is targeting $400 billion in private markets fundraising by 2030. Further, in March 2025, BlackRock purchased Preqin, a premier independent provider of private markets data to enhance its private markets offerings. In October 2024, it acquired Global Infrastructure Partners to enhance its infrastructure offerings and origination capabilities. These buyouts reflect a strategic expansion of the company's Aladdin technology business into the rapidly growing private markets data segment. Product Diversification to Boost AUM: BlackRock has been focusing on diversifying its product suite and revenue mix, which, along with strategic buyouts, has been improving AUM over the years. AUM witnessed a five-year (2019-2024) CAGR of 9.2%. The uptrend continued during the first quarter of 2025. As of March 31, 2025, BlackRock's total AUM was a record $11.58 trillion, with net inflows of $83 billion. The momentum will likely continue as efforts to strengthen the iShares unit (offering more than 1,400 ETFs globally) and ETF operations and an enhanced focus on the active equity business are likely to offer March, the company launched iShares Bitcoin on Xetra and Euronext Paris under the ticker IB1T and on Euronext Amsterdam under the ticker name BTCN. Last September, the company announced a collaboration with Partners Group to introduce a multi-private markets model solution, boosting retail investors' accessibility to alternative investments. Also, last month, Jio BlackRock, a joint venture between BLK and India-based Jio Financial, received regulatory approval to operate as an investment adviser in product diversification efforts are likely to bolster the company's revenue mix, reduce revenue concentration risk, and allow it to serve a broader range of clients, aiding AUM growth. The company's GAAP revenues witnessed a CAGR of 7% over the last five years ended 2024, with the momentum continuing in the first quarter of the combination of HPS Investment, Preqin and GIP data with BLK's alternative asset management platform, eFront, will drive solid revenue growth in the quarters ahead. Sales Estimates Image Source: Zacks Investment Research Encouraging Capital Distributions: BlackRock has a decent balance sheet. As of March 31, 2025, it had $7.7 billion in cash and cash equivalents while borrowings totaled $12.3 billion. This indicates a decent liquidity position. BlackRock announced a 2% hike in the quarterly dividend to $5.21 per share in January 2025. BLK has increased its dividend five times in the last five years with an annualized dividend growth rate of 8.15%.Also, the company has a 46% dividend payout ratio, while its peers, SEI Investments and Invesco, have 21% and 45% payout ratios, respectively. Dividend Yield Image Source: Zacks Investment Research Also, BlackRock has a share repurchase plan in place. In the first quarter of 2025, the company repurchased $375 worth of shares. It aims to buy back shares worth $1.5 billion this year. Over the past month, the Zacks Consensus Estimate for 2025 and 2026 earnings per share has been revised marginally upward to $44.92 and $50.71, respectively. Estimate Revision Trend Image Source: Zacks Investment Research The projected figures imply growth of 3% and 12.9% for 2025 and 2026, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) In the past month, BLK shares have risen 7.3%, outperforming the S&P 500 index, the Zacks Finance sector and the industry. However, the stock has underperformed its close peers — SEI Investments SEIC and Invesco IVZ. One-Month BLK Price Performance Image Source: Zacks Investment Research In terms of valuation, BLK's price-to-book ratio (P/B) of 3.39X is lower than the industry's 3.73X. Thus, the stock is trading at a discount. This suggests that investors may be paying a lower price relative to the company's expected earnings growth. Price-to-Book Ratio Image Source: Zacks Investment Research Further, BLK is inexpensive compared with SEI Investments' P/B of 5.05X. On the other hand, the company is trading at a premium compared with Invesco, which has a P/B of BlackRock's growth initiatives have helped generate higher returns. This is demonstrated by the company's return on equity (ROE) of 15.57% compared with the industry's ROE of 10.60%. Return on Equity Image Source: Zacks Investment Research However, a steady rise in expenses is a headwind. The company recorded a five-year CAGR of 7.4% (ended 2024), mainly due to higher general and administrative (G&A) costs. The uptrend continued in the first quarter of 2025. Overall costs are expected to remain elevated due to the company's business expansion plans. Further, given rising geopolitical risks, foreign currency fluctuations and the global impact of tariff policies, BlackRock may witness subdued overseas revenues, which will likely weigh on its growth to some BlackRock is well-positioned to capitalize on the acquisitions, including HPS, Preqin and GIP, to expand its presence in the fast-growing private markets. This, alongside record AUM levels and product diversification efforts, is expected to support its financials. Inexpensive valuation and bullish analyst sentiments are other should watch out for the above-mentioned concerns and monitor how BlackRock integrates the acquisitions into its businesses before making any investment decision. Those who already own the stock can continue holding it for BLK carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BlackRock (BLK) : Free Stock Analysis Report Invesco Ltd. (IVZ) : Free Stock Analysis Report SEI Investments Company (SEIC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Liverpool's Harvey Elliott could be Bundesliga bound
As reported by The Athletic, Premier League champions Liverpool are looking to sell Harvey Elliott. So far this summer, Arne Slot's side have invested over €200 million in new recruits, overseeing the arrivals of Florian Wirtz and Jeremie Frimpong from Bayer Leverkusen, as well as Milos Kerkez from AFC Bournemouth. Advertisement With such lucrative spending comes a requirement to balance the books, and Liverpool are aiming to do so by offloading Elliott, who shone bright with five goals in six appearances as England won their second consecutive U21 European Championship. It is understood that the Premier League outfit would demand around €58 million for the 22-year-old, with sides such as Brighton & Hove Albion and West Ham United keeping a close eye on his situation. Nevertheless, this fee could prevent further suitors from making a move for the Englishman. Bayer Leverkusen have previously expressed an interest in luring Elliott to the BayArena, while RB Leipzig have always admired the midfielder's talents. Advertisement Therefore, Liverpool would be willing to lower their valuation to around €47 million. This would, however, see the Reds install a buy-back option into any deal, in a similar manner to the potential transfer of Jarell Quansah to Die Werkself. Despite this, should Leverkusen secure a deal with PSV Eindhoven for the signing of Malik Tillman, then a move for Elliott may become redundant. GGFN | Will Shopland
