blackrock

KYCO: Know Your Company

Reveal Profile

4 November 2025

1) Overview of the Company

BlackRock, Inc. is the world’s largest publicly traded investment management firm, headquartered in New York City at 50 Hudson Yards. Founded in 1988 by eight co-founders including Larry Fink, Robert S. Kapito, and Susan Wagner, the company has grown from a small bond shop into a global financial powerhouse managing $13.46 trillion in assets under management as of the third quarter of 2025. BlackRock operates through 70 offices across 30 countries, serving clients in over 100 countries worldwide with a workforce of approximately 21,100 employees.

The firm provides a comprehensive range of investment management services across multiple asset classes, including equity, fixed income, cash management, and alternative investments through separate accounts, mutual funds, exchange-traded funds (ETFs), and other pooled investment vehicles. BlackRock is the manager of the iShares group of ETFs, one of the world’s largest ETF platforms, and operates the Aladdin technology platform, which provides investment and risk management services to institutional clients globally. The company serves diverse clientele including institutional investors, financial intermediaries, and individual investors such as pension plans, insurance companies, endowments, sovereign wealth funds, corporations, and retail investors.

BlackRock’s business model generates revenue primarily through investment advisory and administration fees based on assets under management, with additional income from technology services and advisory solutions. The firm has established itself as an industry leader in environmental, social, and governance (ESG) investing considerations and has positioned itself at the forefront of digital asset innovation, becoming a leading issuer of cryptocurrency-backed ETFs following regulatory approvals in 2024.

The company completed several transformational acquisitions over the past year, including Global Infrastructure Partners for approximately $12.5 billion in October 2024, expanding BlackRock’s private markets capabilities significantly. BlackRock also acquired HPS Investment Partners for $12 billion in July 2025, strengthening its private credit offerings, and completed the acquisition of Preqin in March 2025 to enhance its private markets data and analytics capabilities. These strategic moves have consolidated BlackRock’s position across both public and private markets, with the firm targeting further growth in alternative investments to meet evolving client demands for diversified portfolio solutions.

2) History

BlackRock was founded in 1988 by eight co-founders including Larry Fink, Robert S. Kapito, Susan Wagner, Barbara Novick, Ben Golub, Hugh Frater, Ralph Schlosstein, and Keith Anderson. The founding team emerged from First Boston Corporation, where Fink had previously served as a managing director and his team were pioneers in the mortgage-backed securities market. Following a significant $90 million loss at First Boston under Fink’s tenure, the experience motivated the founders to develop what they considered excellent risk management and fiduciary practices as the cornerstone of their new venture.

Initially seeking funding from Peter Peterson of The Blackstone Group, the firm was originally established as Blackstone Financial Management. Peterson provided a $5 million credit line in exchange for a 50% stake in the bond business, believing in Fink’s vision of a firm devoted to risk management. The business achieved profitability within months, and by 1989 the group’s assets had quadrupled to $2.7 billion, while Blackstone’s ownership stake had fallen to 40%. By 1992, Blackstone held approximately 36% of the company when Stephen A. Schwarzman and Fink considered taking the firm public.

A critical juncture occurred in 1994 when Schwarzman and Fink had an internal dispute over compensation methods and equity distribution. Fink wanted to share equity with new hires to attract talent from banks, while Schwarzman opposed further diluting Blackstone’s stake. The disagreement led to their separation, with Schwarzman selling BlackRock in what he later called a “heroic mistake.” In June 1994, Blackstone sold the mortgage-securities unit with $23 billion in assets to PNC Financial Services for $240 million, and the firm officially adopted the BlackRock name.

BlackRock became a public company on October 1, 1999, selling shares at $14 each through an initial public offering on the New York Stock Exchange. By the end of 1999, the firm was managing $165 billion in assets. The early 2000s marked a period of technological innovation and strategic expansion, with BlackRock launching BlackRock Solutions in 2000 to provide risk management and investment analytics, built on the proprietary Aladdin platform developed in the 1990s.

The firm’s growth accelerated through strategic acquisitions, beginning with State Street Research & Management in August 2004 for $375 million, increasing assets under management from $314 billion to $325 billion. BlackRock merged with Merrill Lynch’s Investment Managers division in 2006, which halved PNC’s ownership and gave Merrill a 49.5% stake. During the 2008 financial crisis, BlackRock played a crucial advisory role when the Federal Reserve selected the firm to analyze and unwind toxic assets owned by Bear Stearns, American International Group, Freddie Mac, and other affected financial institutions.

The transformational moment came in February 2010 when BlackRock acquired Barclays Global Investors for $13.5 billion, including the iShares ETF business. This acquisition doubled BlackRock’s assets under management and positioned the firm as the world’s largest asset manager. PNC Financial Services sold its remaining stake in BlackRock for $14.4 billion in January 2020, ending a 25-year partnership. During the COVID-19 pandemic in March 2020, the Federal Reserve again chose BlackRock to manage corporate bond-buying programs worth $500 billion.

BlackRock’s recent history has been marked by major acquisitions that have transformed its capabilities in private markets. In October 2024, the firm completed its acquisition of Global Infrastructure Partners for approximately $12.5 billion, followed by the acquisition of HPS Investment Partners for $12 billion in July 2025, and the completion of the Preqin acquisition in March 2025. These strategic moves consolidated BlackRock’s position across both public and private markets, establishing the firm as a comprehensive investment solutions provider with over $13.46 trillion in assets under management as of 2025.

3) Key Executives

Laurence D. Fink serves as Chairman and Chief Executive Officer of BlackRock, positions he has held since co-founding the firm in 1988 alongside seven partners. Under his leadership, BlackRock has grown from a small bond shop into the world’s largest asset manager with over $13.46 trillion in assets under management. Prior to founding BlackRock, Fink was a member of the Management Committee and a Managing Director at The First Boston Corporation from 1976 to 1988. He earned an MBA with a concentration in real estate from UCLA in 1976 and a BA in political science from UCLA in 1974.

Robert S. Kapito serves as President and a Director of BlackRock, roles he has maintained since co-founding the firm with Fink and six other partners in 1988. Kapito is also a member of BlackRock’s Global Executive Committee and Chairman of the Global Operating Committee, where he oversees key operating units including Investment Strategies, Client Businesses, Technology & Operations, and Risk & Quantitative Analysis. Like Fink, Kapito previously worked at First Boston Corporation before establishing BlackRock.

Martin Small serves as Chief Financial Officer and Senior Managing Director, a position he assumed in March 2023 after succeeding Gary S. Shedlin. Small also holds the title of Global Head of Corporate Strategy and is a member of BlackRock’s Global Executive Committee. He oversees accounting and controllership, financial planning and analysis, tax, treasury, investor relations, corporate development and corporate strategy. Prior to becoming CFO, Small served as Head of BlackRock’s U.S. Wealth Advisory business from 2018 to 2022 and Head of U.S. and Canada iShares from 2014 to 2018. He joined BlackRock in 2006 as a member of the Legal & Compliance Department after working as a corporate lawyer with Davis Polk & Wardwell. Small earned a B.A. from Brown University and a J.D. from New York University School of Law.

Robert L. Goldstein serves as Chief Operating Officer and Senior Managing Director, a position he has held since 2014. As COO, Goldstein oversees the day-to-day global business operations and ensures connectivity across investment, client, risk and technology functions, including oversight of the Aladdin technology platform. He is a member of the Global Executive Committee and co-chair of the Global Operating Committee. Goldstein joined BlackRock in 1994 as an analyst in the Portfolio Analytics Group when the firm had approximately 55 employees. He earned a BS degree, magna cum laude, in economics from Binghamton University in 1994.

Christopher J. Meade serves as General Counsel and Chief Legal Officer, leading the Legal & Compliance group as a member of the Global Executive Committee. Before joining BlackRock, Meade served as General Counsel of the U.S. Department of the Treasury, where he provided legal counsel to the Treasury Secretary and headed the Treasury Legal Division. Prior to Treasury, he was a partner at Wilmer Cutler Pickering Hale and Dorr, where he argued four cases before the U.S. Supreme Court. Meade received his A.B. from Princeton University, magna cum laude, and his J.D. from NYU Law School, magna cum laude, where he served as Editor-in-Chief of the Law Review.

Rick Rieder serves as Chief Investment Officer of Global Fixed Income, Head of the Fundamental Fixed Income business, and Head of the Global Allocation Investment Team, responsible for managing approximately $2.4 trillion in assets. He is a member of BlackRock’s Global Executive Committee and Chairman of the firm-wide BlackRock Investment Council. Before joining BlackRock in 2009, Rieder was President and CEO of R3 Capital Partners and previously spent over 20 years at Lehman Brothers as head of Global Principal Strategies. He earned a BBA degree in Finance from Emory University in 1983 and an MBA from The Wharton School in 1987.

Derek Stein serves as Global Head of Technology & Operations and Senior Managing Director, responsible for the firm’s worldwide operations across all asset classes and geographies. He is a member of the Global Executive Committee and serves as President and CEO of BlackRock Institutional Trust Company, N.A. Stein’s service with BlackRock dates back to 2005, including his years with Barclays Global Investors, where he served as Chief Information Officer before the 2009 merger. He earned a BA degree in computer science and an MS degree in finance from the University of Witwatersrand in South Africa.

Caroline Heller serves as Global Head of Human Resources and Senior Managing Director, overseeing talent acquisition, development, and retention strategies across BlackRock’s global workforce of over 21,000 employees. She is a member of the Global Executive Committee and has been instrumental in developing BlackRock’s workplace culture and employee engagement initiatives. Under her leadership, the firm has implemented comprehensive diversity, equity, and inclusion programs and flexible work arrangements.

J. Richard Kushel serves as Head of the Portfolio Management Group and Senior Managing Director, overseeing BlackRock’s global investment teams across multiple asset classes. He is a member of the Global Executive Committee and has played a key role in developing the firm’s investment capabilities and portfolio management processes. Kushel has been with BlackRock for over two decades and has extensive experience in portfolio construction and risk management.

Charles Hatami serves as Global Head of the Financial & Strategic Investors Group, Head of Middle East, and Co-Head of the Global Partners Office. As a Senior Managing Director and member of the Global Executive Committee, Hatami oversees BlackRock’s relationships with large asset owners including insurers and sovereign wealth funds. He joined BlackRock in 2010 after founding Xeryus Capital Management, a London-based global macro hedge fund. Hatami earned an MBA from MIT Sloan School of Management and an MSc. in Financial Engineering from Leonardo Da Vinci Engineering School in Paris.

4) Ownership

BlackRock maintains an independent public ownership structure with no single majority shareholder. As of November 2025, the company has approximately 155.1 million shares outstanding, with institutional investors holding approximately 83.18% of shares and insider ownership representing 1.99% of the total. The remaining shares are held by retail investors through various investment vehicles and individual accounts.

The largest institutional shareholder is The Vanguard Group, which holds approximately 13.99 million shares representing 9.04% of BlackRock’s outstanding stock as of June 2025. BlackRock itself ranks as the second-largest institutional holder with 10.11 million shares or 6.53% ownership through its various fund vehicles. State Street Corporation holds the third-largest position with 6.27 million shares representing 4.05% ownership, while Temasek Holdings Private Limited, the Singapore government investment arm, maintains 5.09 million shares or 3.29% ownership. Bank of America Corporation rounds out the top five institutional holders with 4.8 million shares representing 3.12% ownership.

Among individual shareholders, the largest positions are held by BlackRock’s founders and senior executives. Susan Wagner, co-founder and former Vice Chairman who retired in 2012 but remains on the board, holds the largest individual stake with approximately 429,362 shares valued at $352.9 million as of February 2025. Chairman and CEO Laurence Fink owns 520,124 shares worth approximately $341.6 million, representing 0.27% of total shares outstanding. President Robert Kapito holds 217,127 shares valued at $179.1 million, while other senior executives including J. Richard Kushel and Murry Gerber maintain smaller but significant positions.

BlackRock’s ownership structure has evolved significantly since its 1999 initial public offering, when shares were sold at $14 each. A major transformation occurred in October 2024 with the completion of the Global Infrastructure Partners acquisition, which resulted in a corporate restructuring where BlackRock, Inc. became the ultimate parent company of BlackRock Finance, Inc. and other subsidiaries. The company completed additional strategic acquisitions in 2025, including HPS Investment Partners for $12 billion in July and Preqin in March, which have further consolidated BlackRock’s position in private markets while maintaining its public ownership structure.

The current market capitalization stands at approximately $165-180 billion as of November 2025, with the stock trading on the New York Stock Exchange under the ticker symbol BLK. Over 80% of BlackRock’s Board of Directors consists of independent directors, ensuring governance oversight independent from management control. The company’s ownership structure enables it to operate as a fiduciary for clients while maintaining accountability to its diverse shareholder base through regular SEC reporting requirements and annual shareholder meetings.

5) Financial Position

BlackRock demonstrated exceptional financial performance in 2024, reporting full-year diluted earnings per share of $42.01, or $43.61 on an adjusted basis, representing a 14% increase in revenue to $20.4 billion compared to the previous year. The firm’s strong financial position is underpinned by record assets under management of $13.46 trillion as of the third quarter of 2025, generating substantial fee-based revenue streams with approximately 90% of income being recurring in nature based on assets under management.

The company’s revenue growth has been driven by both organic growth and strategic acquisitions, with net inflows reaching a record $641 billion in 2024. BlackRock’s diversified revenue streams across asset classes provide stability, with equity strategies representing 54% of assets under management, fixed income 25%, multi-asset strategies 9%, alternatives 4%, and cash management 8% as of December 2024. Technology services revenue grew 16% year-over-year in the second quarter of 2025, demonstrating the value of the Aladdin platform as both an internal competitive advantage and external revenue generator.

BlackRock maintains a strong balance sheet with conservative leverage ratios and substantial cash generation capabilities. The firm returned $4.7 billion to shareholders in 2024 through dividends and share repurchases, while maintaining a dividend payout ratio of approximately 49%, providing flexibility for continued capital returns while funding strategic investments. Operating margins remain industry-leading at 44.5% on an adjusted basis, reflecting the scalability of the firm’s fee-based business model and operational efficiency across its global platform.

The firm’s financial strength enabled significant strategic investments, including approximately $27 billion in acquisitions between 2024 and 2025. These transactions, including Global Infrastructure Partners for $12.5 billion, HPS Investment Partners for $12 billion, and Preqin for £2.55 billion, were funded through a combination of cash, stock, and debt financing while maintaining conservative leverage ratios. The acquisitions have expanded BlackRock’s alternative assets to $474 billion, growing 45% year-over-year and contributing to higher-margin revenue streams.

BlackRock’s financial outlook remains robust, with the firm targeting continued growth in alternative investments to reach $400 billion by 2030. The company benefits from multiple growth drivers including the expansion of private markets, increasing adoption of ETFs globally, growing demand for technology services, and the development of digital asset capabilities. Management has indicated that the recent acquisitions represent a “real change in the complexion of BlackRock,” positioning the firm for sustained revenue growth and margin expansion across both traditional and alternative investment platforms.

6) Market Position

BlackRock holds an unassailable position as the world’s largest asset manager, with $13.46 trillion in assets under management as of the third quarter of 2025, representing approximately twice the size of its nearest competitor. This dominant market position provides significant competitive advantages through economies of scale, enabling the firm to offer competitive pricing while maintaining industry-leading profit margins. The company serves over 92% of the top 100 global asset owners, demonstrating its essential role in the global investment management ecosystem.

The firm’s iShares ETF platform represents one of the most successful product franchises in financial services history, managing over $5 trillion in assets globally and capturing significant market share across multiple geographic regions. BlackRock’s ETF business generated record net inflows of $153 billion in the third quarter of 2025 alone, benefiting from the continued global shift toward passive investing and cost-efficient investment solutions. The firm has maintained its leadership position in ETFs through continuous innovation, launching new products across asset classes and geographic markets while leveraging its global distribution capabilities.

BlackRock’s Aladdin technology platform serves as a unique competitive moat, managing over $21 trillion in assets across more than 130,000 users at 1,500+ institutions globally. This proprietary risk management and portfolio analytics system creates powerful network effects, as each new client enhances the system’s value for all users, while high switching costs make it difficult for clients to migrate to alternative platforms. Notably, even BlackRock’s direct competitors pay to use Aladdin, creating a situation where rivals contribute to BlackRock’s competitive intelligence while generating licensing revenue.

The firm has established itself as a leader in digital assets, becoming the largest cryptocurrency asset manager globally with over $50 billion in digital assets under management. BlackRock’s Bitcoin ETF (IBIT) became one of the fastest-growing ETFs in history and ranks as the third-highest revenue generator among the firm’s nearly 1,200 funds. The launch of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) on Ethereum made it the largest tokenized fund globally, demonstrating BlackRock’s ability to identify and capitalize on emerging asset classes ahead of competitors.

BlackRock’s expansion into private markets through strategic acquisitions has strengthened its competitive position across the entire investment spectrum. The acquisitions of Global Infrastructure Partners, HPS Investment Partners, and Preqin have created a comprehensive alternative investment platform managing $474 billion in assets, growing 45% year-over-year. This expansion positions BlackRock to compete effectively with specialized private market firms while leveraging its global client relationships and operational scale to capture market share in higher-margin alternative investment strategies.

The firm’s global reach through 70 offices across 30 countries provides unparalleled access to investment opportunities and client relationships worldwide. BlackRock’s established relationships with sovereign wealth funds, central banks, and major institutional investors create substantial barriers to entry for competitors and provide access to unique investment opportunities. The company’s ability to serve clients across public and private markets, traditional and alternative investments, and active and passive strategies positions it as a comprehensive investment solutions provider in an increasingly complex global marketplace.

7) Legal Claims and Actions

BlackRock has faced a substantial pattern of regulatory enforcement actions and legal challenges across multiple jurisdictions over the past decade, with penalties and settlements totaling tens of millions of dollars. These actions span diverse compliance areas including disclosure violations, trading infractions, employment discrimination claims, and environmental stewardship disputes, reflecting challenges in maintaining consistent compliance standards across the firm’s global operations.

The Securities and Exchange Commission has imposed multiple penalties on BlackRock entities for various violations. In October 2023, the SEC charged BlackRock Advisors, LLC with failing to properly disclose investments by a publicly traded fund it advised, resulting in a $2.5 million penalty. The firm inaccurately described Aviron Group, a company developing film distribution plans, as a “Diversified Financial Services” company in fund reports from 2015 to 2019, when Aviron’s sole business was entertainment industry-focused. BlackRock identified and corrected these inaccuracies in 2019 after discovering fraud perpetrated by Aviron’s founder against the fund.

Earlier enforcement actions include a 2015 SEC penalty against BlackRock Advisors for failing to disclose conflicts of interest related to portfolio manager Daniel J. Rice III’s outside business activities with Rice Energy, L.P., where he had invested approximately $50 million while managing BlackRock energy funds that held significant positions in Alpha Natural Resources. In January 2023, the SEC charged former BlackRock portfolio manager with undisclosed conflict of interest. The Commodity Futures Trading Commission imposed a $250,000 penalty on BlackRock Institutional Trust Company in March 2012 for engaging in prearranged trades and fictitious sales in ten-year U.S. Treasury Note Futures spreads on the Chicago Board of Trade. Additionally, the Chicago Board of Trade imposed disciplinary action on BlackRock, Inc. for violating exchange rules.

The firm has confronted multiple discrimination and harassment allegations from former employees. In 2019 and 2020, former employees filed lawsuits and published public allegations of racial and sexual discrimination, including claims by former analyst Essma Bengabsia, who alleged religious and racial discrimination in a widely publicized Medium post detailing inappropriate workplace comments about her Muslim faith. A 2021 lawsuit filed by former employee Brittanie McGee alleged racial and gender discrimination, claiming she was passed over for promotions and paid less than white male colleagues. BlackRock settled this discrimination lawsuit in 2022 without disclosing terms, while maintaining it found no basis for the legal claims.

BlackRock faces ongoing legal challenges related to its environmental stewardship policies and ESG investment strategies. In November 2024, Texas and ten other states filed an antitrust lawsuit alleging that BlackRock, along with Vanguard Group and State Street Corporation, violated federal antitrust laws by using their collective shareholdings in coal companies to reduce production and artificially increase energy prices. Tennessee’s Attorney General filed a lawsuit in December 2023 alleging BlackRock made misleading statements about its ESG investment strategy and inadequately disclosed how it integrated environmental and social considerations into investment decisions. BlackRock reached a settlement with Tennessee in January 2025, agreeing to enhanced disclosure requirements including quarterly rather than annual reporting of proxy votes and providing rationale for votes against management recommendations on environmental or social matters.

Former BlackRock vice president Hamdan Azhar filed a $20 million lawsuit in May 2024, alleging he was fired after objecting to conflicts of interest and being ordered to shut down “Trend Spotter,” a search engine he developed to monitor client discussions about potentially illegal investments, including those in China. Azhar claimed the firm transferred his projects to a company where his former supervisor’s husband worked, constituting “illegal self-dealing.” The SEC previously charged BlackRock with removing a whistleblower from its premises in violation of federal protections in 2017.

In October 2025, BlackRock became ensnared in investigations related to loans tied to firms now accused of fraud, when its private credit arm HPS was involved as a lender to telecom companies that have been accused of fraudulent activities. BlackRock has also sought cash recovery from a Jefferies fund exposed to bankruptcy proceedings related to First Brands.

8) Recent Media

Media coverage from 2023 to 2025 highlights BlackRock’s aggressive expansion into private markets, significant financial performance, and intense scrutiny over its environmental, social, and governance policies. The firm undertook a series of transformative acquisitions, announcing in January 2024 its plan to purchase Global Infrastructure Partners for approximately $12.5 billion, a deal which received U.S. regulatory approval in September 2024 and closed in October 2024. In December 2024, BlackRock announced an agreement to acquire private credit manager HPS Investment Partners for approximately $12 billion, which closed on July 1, 2025. The firm also completed in March 2025 the acquisition of private markets data provider Preqin for £2.55 billion.

Financial reports during the period reflected strong growth, with BlackRock’s assets under management reaching a record $13.46 trillion by the third quarter of 2025. Full-year 2024 results included a record $641 billion in net inflows and a 14% increase in revenue. However, client flows were impacted by several large redemptions. In the second quarter of 2025, the firm reported that a single institutional client made a $52 billion partial withdrawal from a low-fee index fund. The firm also faced politically motivated divestments, including an announced $8.5 billion withdrawal by the Texas Permanent School Fund in March 2024 and a $969 million bond portfolio redemption by Indiana’s public pension system in December 2024.

BlackRock’s ESG strategy has been a dominant and contentious theme in media reports. Responding to political pressure, BlackRock formally withdrew from the Net Zero Asset Managers initiative on January 9, 2025, citing “confusion” regarding its practices and legal inquiries from public officials. The firm has faced legal and regulatory challenges from U.S. states, with Mississippi’s Secretary of State issuing a cease and desist order in March 2024 alleging misleading statements related to its ESG funds. In January 2025, BlackRock settled a lawsuit with Tennessee’s Attorney General by agreeing to enhanced disclosure requirements for its proxy voting on environmental and social matters.

The firm attracted scrutiny for its activities in China, with a group of 17 Republican state attorneys general sending a letter to BlackRock in February 2025 questioning its disclosures on risks associated with its China-focused funds. This followed an April 2024 U.S. House committee report which found that BlackRock had facilitated at least $1.9 billion of investments into blacklisted Chinese companies deemed a national security or human rights risk. A former vice president filed a $20 million lawsuit in May 2024 alleging he was fired after raising objections to conflicts of interest and being forced to shut down a tool designed to monitor client discussions about potentially illegal investments, including in China.

In operational news, on October 24, 2023, the SEC fined BlackRock Advisors $2.5 million for failing to accurately describe investments in the entertainment company Aviron Group within a publicly traded fund it advised. The firm conducted two rounds of layoffs in 2025, eliminating approximately 300 jobs in June 2025, which amounted to just over 1% of its workforce, following a similar reduction at the start of the year. In October 2025, BlackRock became ensnared in reports about loans tied to firms accused of fraud, when reports emerged that the firm’s private credit arm HPS was involved as a lender to telecom firms accused of fabricating accounts receivable.

9) Strengths

BlackRock stands as the undisputed leader in global asset management, overseeing $13.46 trillion in assets under management as of the third quarter of 2025, representing the largest asset base in the industry. This massive scale provides significant competitive advantages through economies of scale, enabling the firm to spread operational costs across a broader asset base and offer competitive pricing to clients. The company’s dominant market position allows it to attract the world’s largest institutional investors, with over 92% of the top 100 global asset owners maintaining relationships with BlackRock.

BlackRock’s Aladdin platform represents one of the most significant competitive advantages in the financial services industry, managing over $21 trillion in assets across more than 130,000 users at 1,500+ institutions globally. This proprietary risk management and portfolio analytics system serves as both an internal competitive advantage and a substantial revenue generator, with technology services revenue growing 16% year-over-year in the second quarter of 2025. The platform creates powerful network effects, as each new client enhances the system’s value for all users, while the high switching costs make it difficult for clients to migrate to alternative systems.

The firm maintains exceptional diversification across asset classes, with equities representing 54% of assets under management, fixed income 25%, multi-asset strategies 9%, alternatives 4%, and cash management 8% as of December 2024. This diversification provides stability during market volatility and allows BlackRock to capture growth opportunities across different market cycles. The company’s iShares ETF franchise, representing over $5 trillion in assets globally, has achieved record growth with $153 billion in net inflows during the third quarter of 2025 alone.

BlackRock operates 70 offices across 30 countries, serving clients in over 100 nations worldwide, providing unparalleled global reach and local market expertise. This extensive international presence allows the firm to capture investment opportunities across diverse markets and economic cycles while providing clients with access to global investment themes and geographic diversification. The company’s established relationships with sovereign wealth funds, central banks, and major institutional investors worldwide create a substantial competitive advantage in winning large mandates.

The firm demonstrates exceptional financial performance with industry-leading operating margins of 44.5% on an adjusted basis and consistent revenue growth, reaching $20.4 billion in 2024, up 14% from the previous year. BlackRock’s fee-based business model generates highly predictable and recurring revenue streams, with approximately 90% of income being recurring in nature. The company’s strong cash generation capabilities enabled it to return $4.7 billion to shareholders in 2024 through dividends and share repurchases.

BlackRock has established itself as the largest cryptocurrency asset manager globally, with over $50 billion in digital assets under management following the successful launch of its Bitcoin ETF and Ethereum ETF. The firm’s IBIT has become one of the fastest-growing ETFs in history and ranks as the third-highest revenue generator among BlackRock’s nearly 1,200 funds. BlackRock’s innovation extends to tokenized assets, with the launch of the BlackRock USD Institutional Digital Liquidity Fund on Ethereum, which became the largest tokenized fund globally.

10) Potential Risk Areas for Further Diligence

BlackRock faces substantial regulatory compliance risks across multiple jurisdictions, evidenced by a pattern of enforcement actions totaling tens of millions in penalties over the past decade. The SEC has imposed multiple penalties, including charges in 2023 for failing to properly disclose investments in Aviron Group, a 2015 penalty for conflicts of interest related to portfolio manager Daniel J. Rice III’s outside business activities, and charges against a former portfolio manager in 2023 for undisclosed conflicts of interest. The CFTC imposed a $250,000 penalty in 2012 for engaging in prearranged trades. With operations across 30 countries and 70 offices globally, BlackRock must navigate complex and often conflicting regulatory frameworks, creating ongoing compliance challenges and potential for future violations.

BlackRock faces significant reputational and regulatory risks from its environmental, social, and governance investment strategies, which have generated substantial political and legal opposition. In November 2024, Texas and ten other states filed an antitrust lawsuit alleging BlackRock violated federal antitrust laws by using shareholdings to reduce coal production and artificially increase energy prices. Mississippi issued a cease and desist order in March 2024 accusing BlackRock of making “fraudulent” statements regarding its climate strategy, while Tennessee filed a lawsuit alleging misleading statements about ESG integration. These challenges could result in continued regulatory scrutiny, client withdrawals, and restrictions on ESG-related business activities.

BlackRock’s global operations and technological infrastructure present significant cybersecurity and operational risks, particularly given the firm’s management of $13.46 trillion in client assets and reliance on the proprietary Aladdin platform. As a systemically important financial institution handling sensitive client data across multiple jurisdictions, BlackRock faces elevated cyber attack risks from state-sponsored actors, criminal organizations, and other sophisticated threats. Any significant cybersecurity incident could trigger regulatory investigations, client withdrawals, and substantial remediation costs.

BlackRock faces substantial key person risk centered on CEO and Chairman Larry Fink, who has led the firm since its founding in 1988 and remains integral to strategic direction, client relationships, and institutional credibility. The departure of Mark Wiedman in 2025, who was considered a potential successor, has heightened succession planning concerns. The firm’s institutional relationships, government advisory roles during financial crises, and investment stewardship activities are closely associated with Fink’s personal reputation and industry standing. Any unexpected leadership transition could create uncertainty among institutional clients, potentially triggering mandate reviews or withdrawals.

BlackRock demonstrated significant vulnerability to large client withdrawals in 2025 when a single Asian institutional client withdrew $52 billion. The firm has faced multiple politically motivated redemptions, including an $8.5 billion withdrawal by Texas Permanent School Fund in 2024 and a $969 million redemption by Indiana’s public pension system. The concentration of assets among a relatively small number of very large institutional clients creates substantial flow volatility risk, particularly as these clients typically manage relationships on 3-5 year mandate cycles.

BlackRock faces ongoing legal challenges related to workplace discrimination and employment practices, with multiple lawsuits filed between 2019 and 2024 alleging racial, religious, and gender discrimination. In May 2024, former vice president Hamdan Azhar filed a $20 million whistleblower lawsuit alleging he was fired after objecting to conflicts of interest and being ordered to shut down a search engine monitoring potentially illegal investments in China. These ongoing employment-related legal challenges create potential for continued litigation costs, regulatory scrutiny, and reputational damage.

BlackRock faces substantial geopolitical and regulatory risks related to its investments in China and Chinese companies, particularly given rising U.S.-China tensions and national security concerns. A 2024 U.S. House committee report found that BlackRock had facilitated at least $1.9 billion of investments into blacklisted Chinese companies deemed national security or human rights risks. In February 2025, 17 Republican state attorneys general questioned the firm about disclosures regarding China-focused fund risks. The firm’s expansion into Chinese markets creates exposure to potential sanctions, regulatory restrictions, or forced divestments.

BlackRock completed approximately $27 billion in acquisitions between 2024 and 2025, including Global Infrastructure Partners, HPS Investment Partners, and Preqin, representing a transformational shift into private markets that introduces new operational and performance risks. In October 2025, BlackRock’s private credit arm through HPS was involved as a lender to two telecom firms accused of fraud, highlighting due diligence risks in private market investments. Integrating these complex alternative investment platforms while maintaining BlackRock’s risk management standards and regulatory compliance across multiple jurisdictions presents significant execution challenges.

Sources

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