Latest news with #BlackRockInc
Yahoo
08-07-2025
- Business
- Yahoo
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
Yahoo
03-07-2025
- Business
- Yahoo
BlackRock's breakout offering overtakes flagship S&P 500 fund in revenue
BlackRock's breakout offering overtakes flagship S&P 500 fund in revenue originally appeared on TheStreet. Wall Street giant BlackRock, Inc. (NYSE: BLK) is now generating more in revenue from its spot Bitcoin exchange-traded fund (ETF) than its signature S&P 500 fund offering, Bloomberg reported on July 2. BlackRock is the world's largest asset manager that managed $11.5 trillion in assets under management (AUM) as of 2024. It is among the first institutional giants to introduce crypto-linked funds in the traditional markets. The asset manager launched the iShares Bitcoin Trust (IBIT), its spot Bitcoin ETF, in January 2024 once the Securities and Exchange Commission (SEC) greenlit it. IBIT managed more than $75 billion in net assets as of July 2 as per SoSoValue. It is the largest spot BTC fund in the world and accounts for 3.52% of total Bitcoin per the Bloomberg report, IBIT has witnessed an astonishing fund inflow from both institutional and retail investors. Since its launch in January 2024, the fund has seen a positive net flow for all 18 months except one. With an expense ratio of 0.25%, the BTC ETF has generated an estimated $187.2 million in annual fees for BlackRock, as per Bloomberg's calculations as of July 1. In contrast, BlackRock's iShares Core S&P 500 ETF (IVV) generated an estimated annual fees of $187.1 million. Launched in 2000, IVV manages $624 billion in net assets — 8.3 times that of its Bitcoin counterpart. However, its expense ratio is only 0.03% — also 8.3 times lower. Crypto entrepreneur and podcast host Anthony Pompliano underlined on X that Wall Street is paying full attention to Bitcoin. As per Kraken's price feed, Bitcoin was trading at $109,131.76, up 1.7% a day. BlackRock's breakout offering overtakes flagship S&P 500 fund in revenue first appeared on TheStreet on Jul 3, 2025 This story was originally reported by TheStreet on Jul 3, 2025, where it first appeared. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Zawya
03-07-2025
- Business
- Zawya
BlackRock mulls selling stake in Saudi Aramco gas pipelines, Bloomberg News reports
Asset manager BlackRock Inc is in talks with Saudi Aramco to divest its stake in the leasing rights of a natural gas pipeline network back to the state oil major, Bloomberg News reported on Thursday, citing people familiar with the matter. The stake, which BlackRock acquired in 2021, is likely to be worth billions of dollars, according to the report. Reuters could not immediately confirm the report. (Reporting by Shanima A in Bengaluru)
Yahoo
01-07-2025
- Business
- Yahoo
BlackRock Dissolves Private Credit Partnership With Mubadala in Asia
BlackRock Inc. BLK and Mubadala Investment have jointly agreed to end their Asian private credit collaboration, which focused on investments in China and Indonesia, due to challenges in sourcing deals. This was reported by Bloomberg, citing people familiar with the matter. As part of the partnership launched in 2023, Mubadala had committed to matching every U.S. dollar that BlackRock invested. The partnership has allocated only a small portion of its capital so far, as deal origination in China has been challenging, with the targeted return profile being in the mid-teens Ganis, head of private credit in Indonesia, departed in the early days of the partnership, making deal origination in the country more challenging. BlackRock has been aiming to boost its private markets capabilities to generate higher returns. In March 2025, it acquired Preqin for $3.2 billion to enhance its private markets offerings. In December 2024, it agreed to acquire HPS Investment Partners to deepen its presence in the private credit market. In October 2024, the company acquired Global Infrastructure Partners to enhance its infrastructure offerings and origination in its investor presentation last month, BLK predicted that the private credit market could expand to $4.5 trillion by 2030, and hence it targeted $400 billion in private markets fundraising by that time. Recently, BLK got selected by Great Gray Trust Company, LLC to offer a retirement solution featuring private equity and credit has also collaborated with Partners Group to combine a varied pool of private assets into a single portfolio of alternatives for retail clients. Over the past year, BLK shares have gained 33%, outperforming the industry's 20.7% growth. Image Source: Zacks Investment Research Currently, BlackRock carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This February, JPMorgan JPM announced an additional $50 billion allocation toward direct lending, solidifying its presence in the credit market. The move, unveiled at its 30th annual Global Leveraged Finance Conference, signals the company's intent to become a dominant force in private 2021, JPMorgan has deployed more than $10 billion across 100+ private credit transactions, leveraging its extensive client base and vast origination platform. The bank's partnerships with multiple co-lenders have further strengthened its position, bringing in an additional $15 billion in capital. According to Kevin Foley, global head of Capital Markets at JPM, the company's ability to integrate its origination platform with lender partners has significantly increased deal flow and lending 2024, Citigroup C inked a deal with Apollo Global APO for its subsidiary and certain affiliates of Apollo to establish a revolutionary $25-billion private credit, direct lending program. The program will initially focus on North America, potentially expanding to additional geographies. Both Citigroup and Apollo expect the program to finance approximately $25 billion of debt opportunities over the next several years, including corporate and financial sponsor transactions. 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 JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report BlackRock (BLK) : Free Stock Analysis Report Apollo Global Management Inc. (APO) : 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
Yahoo
01-07-2025
- Business
- Yahoo
BlackRock Completes Acquisition of HPS Investment Partners
NEW YORK, July 01, 2025--(BUSINESS WIRE)--BlackRock, Inc. (NYSE: BLK) and HPS Investment Partners (HPS) today announced the successful completion of BlackRock's acquisition of HPS. Private credit is reshaping financial markets and the structural trends supporting its growth have accelerated the convergence of public and private markets. Financing activity is being shifted toward the capital markets, positioning asset managers to match long-dated capital with long-term investors, including insurance companies, pensions, sovereign wealth funds, wealth managers, and individuals saving for retirement. With the addition of HPS, BlackRock is now positioned to more fully meet the accelerating client demands resulting from this shift, providing clients and borrowers access to integrated, best-in-class solutions at scale. Operating alongside BlackRock's $3 trillion public fixed income franchise, which includes the Fundamental Fixed Income business, led by Rick Rieder, as well as the Financial Institutions Group, led by Peter Gailliot, the addition of HPS's capabilities into a combined platform allows BlackRock to stay ahead of market evolution and client needs, as they increasingly look past traditional distinctions of "public" and "private" in accessing credit markets. To fully capture the opportunities created by this combination, BlackRock is creating Private Financing Solutions (PFS), which will combine the firms' market-leading private credit, GP and LP solutions, and private and liquid CLO businesses into one integrated platform. Together, PFS will advance BlackRock's ability to create a more seamless experience for investors and borrowers, while offering a platform that is well equipped to identify and execute on a broad array of opportunities created by this market evolution. The combined PFS team will be led by Scott Kapnick, Scot French, and Michael Patterson. HPS's flagship strategies, including HPS Strategic Investment Partners (SIP), HPS Specialty Loan Fund (SLF), HPS Core Senior Lending Fund (CSL), and HPS Corporate Lending Fund (HLEND), and other investment strategies, will maintain their HPS branding, and the HPS business will now be known as HPS, a part of BlackRock. Core to PFS will be an integrated private credit franchise with $190 billion in client assets and a platform to provide both public and private income solutions for clients. The GP/LP business plays an important role in helping private markets firms and investors navigate today's market environment through capital formation and liquidity solutions. Aligning BlackRock and HPS's existing GP/LP businesses within the PFS structure will allow the firm to deepen relationships with sponsors and investors, delivering bespoke solutions across the platform, and partnering to resolve their most pressing needs. "BlackRock has always looked at the full breadth of our clients' needs in everything we do. Through this combination, we are more strongly positioned to serve our clients, globally and locally, through our One BlackRock culture, with solutions that seamlessly blend public and private," said Laurence D. Fink, BlackRock Chairman and CEO. "The creation of PFS means that we can answer far more client needs with far fewer calls, creating a comprehensive solutions provider for clients and borrowers alike. We are excited to realize the potential of this platform and thrilled to have Scott, Scot, Mike and the talented HPS team join us on this journey." "We are thrilled to join BlackRock and lift the HPS success story to a new level. Current opportunities in the private credit markets are enormous and successfully navigating them will require entrepreneurial drive, disciplined risk management, global reach and a powerful platform to originate the most compelling transactions. BlackRock Private Financing Solutions will deliver all these success factors to our clients, investors, shareholders and employees. We are ready and excited to hit the ground running," said Scott Kapnick, Chief Executive Officer of HPS. Scott Kapnick will be an observer to the BlackRock Board of Directors. Perella Weinberg Partners LP served as lead financial advisor to BlackRock. Morgan Stanley & Co. LLC also served as financial advisor, with Skadden, Arps, Slate, Meagher & Flom LLP and Clifford Chance LLP acting as legal counsel. J.P. Morgan Securities LLC served as lead financial advisor to HPS, with Goldman Sachs & Co. LLC, BofA Securities, Inc., Deutsche Bank Securities Inc., BNP Paribas, and RBC Capital Markets acting as co-financial advisors and Fried, Frank, Harris, Shriver & Jacobson LLP serving as legal counsel. About BlackRockBlackRock's purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit About HPS Investment PartnersHPS Investment Partners, LLC is a leading global, credit-focused alternative investment firm that seeks to provide creative capital solutions and generate attractive risk-adjusted returns for our clients. We manage various strategies across the capital structure, including privately negotiated senior debt; privately negotiated junior capital solutions in debt, preferred and equity formats; liquid credit including syndicated leveraged loans, collateralized loan obligations and high yield bonds; asset-based finance and real estate. The scale and breadth of our platform offers the flexibility to invest in companies large and small, through standard or customized solutions. At our core, we share a common thread of intellectual rigor and discipline that enables us to create value for our clients, who have entrusted us with approximately $157 billion of assets under management as of March 31, 2025. For more information, please visit Forward-Looking Statements This press release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock's future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as "trend," "potential," "opportunity," "pipeline," "believe," "comfortable," "expect," "anticipate," "current," "intention," "estimate," "position," "assume," "outlook," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" and similar expressions. BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and may contain information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance. BlackRock has previously disclosed risk factors in its Securities and Exchange Commission reports. These risk factors and those identified elsewhere in this release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management ("AUM"); (3) the relative and absolute investment performance of BlackRock's investment products; (4) BlackRock's ability to develop new products and services that address client preferences; (5) the impact of increased competition; (6) the impact of recent or future acquisitions or divestitures, including the acquisitions of Global Infrastructure Management, LLC, Preqin Holding Limited and HPS Investment Partners (collectively, the "Transactions"); (7) BlackRock's ability to integrate acquired businesses successfully, including the Transactions; (8) the unfavorable resolution of legal proceedings; (9) the extent and timing of any share repurchases; (10) the impact, extent and timing of technological changes and the adequacy of intellectual property, data, information and cybersecurity protection; (11) the failure to effectively manage the development and use of artificial intelligence; (12) attempts to circumvent BlackRock's operational control environment or the potential for human error in connection with BlackRock's operational systems; (13) the impact of legislative and regulatory actions and reforms, regulatory, supervisory or enforcement actions of government agencies and governmental scrutiny relating to BlackRock; (14) changes in law and policy and uncertainty pending any such changes; (15) any failure to effectively manage conflicts of interest; (16) damage to BlackRock's reputation; (17) increasing focus from stakeholders regarding environmental and social-related matters; (18) geopolitical unrest, terrorist activities, civil or international hostilities, and other events outside BlackRock's control, including the Middle East conflicts, wars, global trade tensions, tariffs, natural disasters and health crises, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (19) climate-related risks to BlackRock's business, products, operations and clients; (20) the ability to attract, train and retain highly qualified professionals; (21) fluctuations in the carrying value of BlackRock's economic investments; (22) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products, which could affect the value proposition to clients and, generally, the tax position of BlackRock; (23) BlackRock's success in negotiating distribution arrangements and maintaining distribution channels for its products; (24) the failure by key third-party providers to fulfill their obligations to BlackRock; (25) operational, technological and regulatory risks associated with BlackRock's major technology partnerships; (26) any disruption to the operations of third parties whose functions are integral to BlackRock's exchange-traded funds platform; (27) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (28) the impact of problems, instability or failure of other financial institutions or the failure or negative performance of products offered by other financial institutions. View source version on Contacts BlackRock Investor Relations Caroline BlackRock Media Relations Patrick HPS Investment Partners Mike Geller / Josh Clarkson646-818-9018 / 646-818-9259mgeller@ / jclarkson@
