Blackrock Large Cap Series Funds N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-09637

Name of Fund:  BlackRock Large Cap Series Funds, Inc.

            BlackRock Event Driven Equity Fund

Fund Address:  100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Large Cap Series Funds, Inc., 55 East 52^nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 441-7762

Date of fiscal year end: 05/31/2020

Date of reporting period: 05/31/2020

Item 1 – Report to Stockholders

MAY 31, 2020

2020 Annual Report

BlackRock Event Driven Equity Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from BlackRock or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future reports in paper free of charge. If you hold accounts directly with BlackRock, you can call (800) 441-7762 to inform BlackRock that you wish to continue receiving paper copies of your shareholder reports. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds advised by BlackRock Advisors, LLC, BlackRock Fund Advisors or their affiliates, or all funds held with your financial intermediary, as applicable.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by: (i) accessing the BlackRock website at blackrock.com/edelivery and logging into your accounts, if you hold accounts directly with BlackRock, or (ii) contacting your financial intermediary, if you hold accounts through a financial intermediary. Please note that not all financial intermediaries may offer this service.

Not FDIC Insured • May Lose Value • No Bank Guarantee

The Markets in Review

Dear Shareholder,

The last 12 months have been a time of sudden change in global financial markets, as a long period of growth and positive returns was interrupted in early 2020 by the emergence and spread of the coronavirus. For the first part of the reporting period, U.S. equities and bonds both delivered impressive returns, despite fears and doubts about the economy that were ultimately laid to rest with unprecedented monetary stimulus and a sluggish yet resolute performance from the U.S. economy. But as the threat from the coronavirus became more apparent throughout February and March 2020, leading countries around the world took economically disruptive countermeasures, causing equity prices to fall sharply. While markets have since recovered some of these losses as countries around the world begin reopening, there is still significant uncertainty surrounding the long-term impact of the pandemic on the global economy.

Returns for most securities were robust for the first part of the reporting period, as investors began to realize that the U.S. economy was maintaining the modest yet steady growth that had characterized this economic cycle. However, once stay-at-home orders and closures of non-essential businesses became widespread, many workers were laid off and unemployment claims spiked. With large portions of the global economy on hold, all types of international equities ended the 12-month reporting period with negative performance, while in the United States large-capitalization stocks, which investors saw as more resilient than smaller companies, delivered solid returns.

The performance of different types of fixed-income securities diverged substantially due to a reduced investor appetite for risk. Treasuries benefited from the risk-off environment, and posted healthy returns, as the 10-year U.S. Treasury yield (which is inversely related to bond prices) fell to an all-time low. Investment-grade corporate bonds also delivered a solid return, while high-yield corporate returns were muted due to credit concerns.

The U.S. Federal Reserve (the “Fed”) reduced interest rates three times in 2019, to support slowing economic growth. After the coronavirus outbreak, the Fed instituted two emergency rate cuts, pushing short-term interest rates close to zero. To stabilize credit markets, the Fed also announced a new bond-buying program, as did several other central banks around the world, including the European Central Bank and the Bank of Japan.

Looking ahead, while coronavirus-related disruption is certain to hurt worldwide economic growth, the global expansion is likely to continue once the impact of the outbreak subsides. We are encouraged by the strong coordinated monetary and fiscal response that is underway, both in the United States and abroad. However, there remains a risk that policy fatigue and recent improvements in economic indicators could lead lawmakers to retreat from needed stimulus measures too soon.

Overall, we favor a neutral stance toward risk, given the uncertainty surrounding the path to recovery. Among equities, we see an advantage in U.S. stocks compared to other developed markets, given the diversity of the U.S. economy and the impressive scope of monetary and fiscal stimulus. In bonds, the swift action taken by the world’s central banks means there are attractive opportunities in credit, and we expect credit spreads to narrow as markets stabilize. Both U.S. Treasuries and sustainable investments can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of May 31, 2020
	6-Month	12-Month
U.S. large cap equities (S&P 500® Index)	(2.10)%	12.84%
U.S. small cap equities (Russell 2000® Index)	(13.53)	(3.44)
International equities (MSCI Europe, Australasia, Far East Index)	(11.48)	(2.81)
Emerging market equities (MSCI Emerging Markets Index)	(9.69)	(4.39)
3-month Treasury bills (ICE BofA 3-Month U.S. Treasury Bill Index)	0.73	1.84
U.S. Treasury securities (ICE BofA 10-Year U.S. Treasury Index)	11.55	15.87
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	5.40	9.42
Tax-exempt municipal bonds (S&P Municipal Bond Index)	1.52	3.87
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)	(2.84)	1.31
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

2 THIS PAGEIS NOT PARTOF YOUR FUND REPORT

Table of Contents

	Page
The Markets in Review		2
Annual Report:
Fund Summary		4
About Fund Performance		7
Disclosure of Expenses		7
Derivative Financial Instruments		7
Financial Statements:
Schedule of Investments		8
Statement of Assets and Liabilities		21
Statements of Operations		23
Statements of Changes in Net Assets		24
Financial Highlights		25
Notes to Financial Statements		28
Report of Independent Registered Public Accounting Firm		40
Important Tax Information		41
Disclosure of Investment Advisory Agreement		42
Director and Officer Information		45
Additional Information		49
Glossary of Terms Used in this Report		51

3

Fund Summary  as of May 31, 2020 BlackRock Event Driven Equity Fund

Investment Objective

BlackRock Event Driven Equity Fund’s (the “Fund”) investment objective is to seek long-term capital growth.

On November 13, 2019, the Board of Directors of BlackRock Large Cap Series Funds, Inc. approved a change in the fiscal year-end of the Fund, effective as of May 31, 2020, from September 30 to May 31.

Portfolio Management Commentary

How did the Fund perform?

For the abbreviated annual reporting period from October 1, 2019 to May 31, 2020, the Fund’s Institutional and Investor A Shares returned 1.53% and 1.40%, respectively, outperforming the ICE BofAML 3-Month U.S. Treasury Bill Index, which returned 1.05%, The Fund’s Investor C Shares returned 0.93%, underperforming the ICE BofAML 3-Month U.S. Treasury Bill Index. For the same period, the Fund underperformed the Russell 1000^® Index, which returned 3.68%.

What factors influenced performance?

The Fund is an absolute return strategy managed to a cash benchmark, the ICE BofAML 3-Month U.S. Treasury Bill Index. The Fund diversifies across hard catalyst (primarily publicly announced mergers), soft catalyst (companies undergoing meaningful corporate events), and credit opportunities.

Hard catalyst, soft catalyst, and credit investments all contributed to Fund returns over the period. The primary contributor to returns was the Fund’s position in the AbbVie, Inc./ Allergan PLC merger. The investment adviser added to this high conviction idea during the fourth quarter of 2019, making it the largest position in the Fund entering 2020. The companies made strong progress against key risks and obtained regulatory approval in both China and Europe during the first half of the period. The transaction continued to advance through the regulatory process with the announcement of divestitures in February, and it subsequently went on to successfully close in early May. An investment in Thermo Fisher Scientific Inc./Qiagen NV further benefitted Fund performance over the period as speculation emerged on the potential for an increased offer or a competing bid. The Fund’s position in the Nvidia Corp./ Mellanox Technologies Ltd. merger supported results as well. The transaction secured requisite regulatory approvals throughout the period, including approval from the European Union in the fourth quarter of 2019 and from China in early April 2020. The transaction completed successfully at the end of April.

Amid increased market volatility at the end of the first quarter of 2020, merger spreads (which reflect the difference between the price the target company is trading at in the market and the offer price of the transaction) widened substantially across much of the portfolio. Though the Fund has not experienced a single deal break through the end of May and merger spreads have begun to normalize, spreads remain elevated versus historic norms and certain transactions continue to be particularly impacted by the effects of the coronavirus. The largest detractor from Fund performance over the period was an investment in the LVMH/Tiffany & Co. transaction, as the merger spread widened amid fears that Covid-19 related store closures will adversely impact the transaction’s outcome. Similarly, positioning in Simon Property Group / Taubman Centers detracted from returns as the pandemic’s impact on malls and shopping centers led to modest spread widening over the period. The Fund’s position in the Peugeot / Fiat Chrysler merger further detracted, as concerns regarding the impact of the pandemic on auto industry fundamentals caused the merger spread to widen during the back half of the period.

Describe recent portfolio activity.

Coming into 2020, the investment adviser was of the view that the risk-return profile of the market was highly asymmetric, offering limited upside against a larger potential downside. As a result, though the portfolio remains highly hedged with a low net market exposure at all times, the Fund entered 2020 with some of its most conservative positioning since inception. It was positioned toward the low end of its historical long market value and toward the higher end of its historical hedging paradigm. This conservative positioning was beneficial during the sell-off and allowed the investment adviser to take advantage of opportunities as they arose. As the market stress created large dislocations and, in many cases, significant opportunity, the investment adviser added meaningfully to the portfolio across all three sub-strategies (hard catalyst, soft catalyst, and credit) at more attractive price levels, while remaining cautious and ensuring to never exceed any risk limits.

The Fund held derivatives during the period as part of its investment strategy. Contracts for difference are used by the investment adviser as the primary instrument to gain exposure to merger arbitrage situations. As a result, cash and cash equivalents are not representative of unencumbered cash, and the portfolio remains fully invested as of May 31, 2020. The Fund’s use of derivatives had a positive impact on Fund performance.

Describe portfolio positioning at period end.

The Fund remained diversified across the spectrum of corporate events, while maintaining a skew to hard catalyst, merger arbitrage opportunities. The Fund was comprised of 83 investments at the end of the period, with roughly 70% of the portfolio invested in hard catalyst opportunities and the other 30% in soft catalyst and credit opportunities. From a geographical perspective, the Fund’s exposure was concentrated in the United States, with nearly 75% of the Fund’s gross exposure in North America, 25% in Europe and less than 1% in Asia Pacific. The Fund remained diversified across sectors and market capitalizations.

These views are not intended to be a forecast of future events and are no guarantee of future results.

4 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of May 31, 2020 (continued) BlackRock Event Driven Equity Fund

TOTAL RETURN BASED ON $10,000 INVESTMENT

^(a)  Assuming maximum sales charges, if any, transaction costs and other operating expenses, including investment advisory fees and administration fees, if any. Institutional Shares do not have a sales charge.

^(b)  Under normal market conditions, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities and related derivative instruments with similar economic characteristics. The Fund’s total returns prior to May 8, 2015 are the returns of the Fund when it utilized different investment strategies under the name BlackRock Large Cap Core Plus Fund.

^(c)  An index that measures the performance of the large cap segment of the U.S. equity universe. It is a subset of the Russell 3000^® Index and includes approximately 1,000 of the largest securities based on a combination of their market capitalization and current index membership. The index represents approximately 92% of the total market capitalization of the Russell 3000^® Index.

^(d)  An unmanaged index that tracks 3-month U.S. Treasury securities. Effective January 1, 2020, the Fund’s benchmark was renamed from ICE BofAML 3-Month U.S. Treasury Bill Index to ICE BofA 3-Month U.S. Treasury Bill Index.

Performance Summary for the Period Ended May 31, 2020

				Average Annual Total Returns(a)(b)
				1 Year						5 Years						10 Years
	6-Month			Without			With			Without			With			Without			With
	Total			Sales			Sales			Sales			Sales			Sales			Sales
	Returns			Charge			Charge			Charge			Charge			Charge			Charge
Institutional		0.61	%		4.27	%		N/A			4.54	%		N/A			9.44	%		N/A
Investor A		0.55			4.14			(1.33	)%		4.29			3.17	%		9.15			8.56	%
Investor C		0.22			3.35			2.35			3.54			3.54			8.37			8.37
Russell 1000® Index		(2.17	)		12.54			N/A			9.58			N/A			13.07			N/A
ICE BofAML 3-Month U.S. Treasury Bill Index		0.73			1.84			N/A			1.19			N/A			0.64			N/A

^(a)  Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 7 for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes.

^(b)  Under normal market conditions, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities and related derivative instruments with similar economic characteristics. The Fund’s total returns prior to May 8, 2015 are the returns of the Fund when it utilized different investment strategies under the name BlackRock Large Cap Core Plus Fund.

N/A — Not applicable as share class and index do not have a sales charge.

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

FUND SUMMARY 5

Fund Summary  as of May 31, 2020 (continued) BlackRock Event Driven Equity Fund

Expense Example

	Actual									Hypothetical(a)
				Including Interest Expense			Excluding Interest Expense					Including Interest Expense				Excluding Interest Expense
		Beginning Account Value (12/01/19)	Ending Account Value (05/31/20)		Expenses Paid During the Period	(b)		Expenses Paid During the Period	(c)		Beginning Account Value (12/01/19)		Ending Account Value (05/31/20)	Expenses Paid During the Period	(b)		Ending Account Value (05/31/20)	Expenses Paid During the Period	(c)
Institutional		$ 1,000.00	$ 1,006.10		$  5.96			$  5.95			$ 1,000.00		$ 1,019.05	$  6.00			$ 1,019.06	$  5.99
Investor A		1,000.00	1,005.50		7.18			7.17			1,000.00		1,017.84	7.22			1,017.85	7.21
Investor C		1,000.00	1,002.20		10.77			10.76			1,000.00		1,014.24	10.83			1,014.25	10.82

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent six-months divided by 366.

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.19% for Institutional, 1.43% for Investor A, and 2.15% for Investor C), multiplied by average account value over the period, multiplied by 183/366 (to reflect the six-month period shown).

^(c)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.19% for Institutional, 1.43% for Investor A, and 2.15% for Investor C), multiplied by average account value over the period, multiplied by 183/366 (to reflect the six-month period shown).

See “Disclosure of Expenses” on page 7 for further information on how expenses were calculated.

Portfolio Information

SECTOR ALLOCATION
	Percent of Total Investments(a)
Sector(b)	Long			Short			Total
Financials		15	%		11	%		26	%
Consumer Discretionary		15			5			20
Health Care		18			1			19
Information Technology		11			3			14
Industrials		7			1			8
Investment Companies		1			4			5
Materials		3			1			4
Real Estate		2			—			2
Communication Services		1			—			1
Energy		1			—	(c)		1
		74	%		26	%		100	%

^(a)  Total investments include the gross notional values of long and short equity securities of the underlying derivative contracts utilized by the Fund and exclude short-term securities and borrowed bonds.

^(b)  For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

^(c)  Amount is less than 1%.

6 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

About Fund Performance

Institutional Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors.

Investor A Shares are subject to a maximum initial sales charge (front-end load) of 5.25% and a service fee of 0.25% per year (but no distribution fee). Certain redemptions of these shares may be subject to a contingent deferred sales charge (“CDSC”) where no initial sales charge was paid at the time of purchase. These shares are generally available through financial intermediaries.

Investor C Shares are subject to a 1.00% CDSC if redeemed within one year of purchase. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. These shares are generally available through financial intermediaries. These shares automatically convert to Investor A Shares after approximately ten years.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer to blackrock.com to obtain performance data current to the most recent month-end. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Figures shown in the performance table on page 5 assume reinvestment of all distributions, if any, at net asset value (“NAV”) on the ex-dividend date or payable date, as applicable. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

BlackRock Advisors, LLC (the “Manager”), the Fund’s investment adviser, has contractually agreed to waive and/or reimburse a portion of the Fund’s expenses. Without such waivers and/or reimbursements, the Fund’s performance would have been lower. With respect to the Fund’s contractual waivers, the Manager is under no obligation to continue waiving and/or reimbursing its fees after the applicable termination date of such agreement. See Note 6 of the Notes to Financial Statements for additional information on waivers and/or reimbursements.

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, service and distribution fees, including 12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example shown on the previous page (which is based on a hypothetical investment of $1,000 invested on December 1, 2019 and held through May 31, 2020) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Derivative Financial Instruments

The Fund may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Fund’s successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation the Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Fund’s investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

ABOUT FUND PERFORMANCE 7

Schedule of Investments May 31, 2020 BlackRock Event Driven Equity Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Aerospace & Defense — 0.7%
Howmet Aerospace, Inc.		2,720,642	$	35,585,997
Banks — 0.0%
Valley National Bancorp		125,854		1,004,315
Biotechnology — 0.0%
Beam Therapeutics, Inc.(a)		47,552		1,214,954
Capital Markets — 0.5%
Bolsas y Mercados Espanoles SHMSF SA		684,417		25,025,200
Chemicals — 0.9%
Akzo Nobel NV		22,536		1,850,607
Axalta Coating Systems Ltd.(a)		460,963		10,652,855
Corteva, Inc.		4,349		118,771
Dow, Inc.		4,349		167,871
DuPont de Nemours, Inc.		142,672		7,237,751
Olin Corp.		970,382		11,673,695
Sherwin-Williams Co.		20,374		12,099,100
				43,800,650
Commercial Services & Supplies — 0.3%
GFL Environmental, Inc.		652,643		12,511,166
Diversified Consumer Services — 0.1%
Service Corp. International		91,539		3,609,383
Diversified Telecommunication Services — 0.2%
AT&T Inc.		234,545		7,238,059
Electric Utilities — 0.0%
Energy Harbor Corp.(a)(b)		53,430		2,057,055
Electrical Equipment — 0.2%
OSRAM Licht AG(a)		205,900		9,004,535
Electronic Equipment, Instruments & Components — 0.2%
Keysight Technologies, Inc.(a)		101,290		10,952,488
Equity Real Estate Investment Trusts (REITs) — 0.1%
VEREIT, Inc.		158,504		868,602
VICI Properties, Inc.		121,465		2,383,143
				3,251,745
Food & Staples Retailing — 0.0%
Walgreens Boots Alliance, Inc.		40,199		1,726,145
Food Products — 0.2%
Conagra Brands, Inc.		325,797		11,334,478
Health Care Equipment & Supplies — 0.8%
Cooper Cos., Inc.(c)		7,336		2,325,365
Danaher Corp.		129,867		21,637,141
Envista Holdings Corp.(a)		728,067		15,391,337
SmileDirectClub, Inc.(a)(c)		205,026		1,601,253
				40,955,096
Health Care Providers & Services — 0.7%
1Life Healthcare, Inc.(a)		14,557		470,191
Anthem, Inc.		2,711		797,332
Brookdale Senior Living, Inc.(a)		2,917,972		10,679,777
Cigna Corp.		105,246		20,767,141
				32,714,441
Health Care Technology — 0.0%
Schrodinger, Inc.(a)		23,398		1,601,593
Household Durables — 0.1%
Casper Sleep, Inc.(a)(c)		352,363		2,487,683

Security		Shares		Value
Insurance — 0.0%
Selectquote, Inc.(a)(c)			76,242	$	2,098,180
Leisure Products — 0.0%
Peloton Interactive, Inc., Class A(a)			25,563		1,078,503
Life Sciences Tools & Services — 0.2%
10X Genomics, Inc., Class A(a)			18,184		1,417,806
PPD, Inc.(a)			354,245		9,649,634
					11,067,440
Machinery — 0.0%
Altra Industrial Motion Corp.			628		19,468
Fortive Corp.			2,552		155,621
					175,089
Media — 0.2%
Charter Communications, Inc., Class A(a)			17,792		9,678,848
Metals & Mining — 0.3%
Arconic Corp.(a)			922,621		13,350,326
Oil, Gas & Consumable Fuels — 0.4%
Williams Cos., Inc.			874,400		17,863,992
Personal Products — 0.2%
Coty, Inc., Class A			2,630,011		9,546,940
Pharmaceuticals — 0.6%
Elanco Animal Health, Inc.(a)			1,375,244		29,443,974
Pfizer, Inc.			69,071		2,637,821
					32,081,795
Software — 0.1%
Bill.com Holdings, Inc.(a)(c)			5,309		369,719
Cloudflare, Inc., Class A(a)			31,865		926,316
Datadog, Inc., Class A(a)			10,576		753,751
Ping Identity Holding Corp.(a)			65,405		1,851,616
VMware, Inc., Class A(a)			18,090		2,826,924
					6,728,326
Wireless Telecommunication Services — 0.1%
T-Mobile U.S., Inc.(a)			43,376		4,339,335
Total Common Stocks — 7.1% (Cost: $327,878,714)					354,083,757
		Par (000)
Corporate Bonds
Aerospace & Defense — 0.2%
Bombardier, Inc., 8.75%, 12/01/21(d)	USD		3,200		2,320,000
Howmet Aerospace, Inc., 6.88%, 05/01/25			4,565		4,850,420
TransDigm, Inc., 8.00%, 12/15/25(d)			2,714		2,931,120
					10,101,540
Airlines — 0.2%
Delta Air Lines, Inc., 2.60%, 12/04/20			10,000		9,933,107
Automobiles — 0.4%
Volkswagen Group of America Finance LLC, 4.00%, 11/12/21(d)			17,500		18,035,826
Banks — 0.5%
Bank of America Corp., (3 mo. LIBOR US + 0.660%), 2.37%, 07/21/21(e)(f)			25,000		25,031,048
Chemicals — 0.1%
Olin Corp., 9.50%, 06/01/25(d)			7,129		7,779,521
Diversified Consumer Services — 0.0%
Sotheby’s, 7.38%, 10/15/27(d)			1,857		1,689,870

8 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (continued) May 31, 2020 BlackRock Event Driven Equity Fund (Percentages shown are based on Net Assets)

Security		Par             (000)		Value
Diversified Telecommunication Services — 0.3%
Frontier Communications Corp., 8.00%, 04/01/27(a)(d)(g)	USD		12,500	$	12,859,375
Electric Utilities — 0.1%
Energy Harbor Corp. Escrow, 0.01%, 01/06/34(b)			5,000		25,000
Pacific Gas and Electric Co.
6.05%, 03/01/34(a)(g)			2,500		2,850,000
3.75%, 08/15/42(a)(g)			3,000		2,925,000
					5,800,000
Health Care Equipment & Supplies — 0.3%
Envista Holdings Corp., 2.38%, 06/01/25(d)(h)			12,333		14,764,279
Health Care Providers & Services — 0.3%
Tenet Healthcare Corp., 8.13%, 04/01/22			13,375		13,976,875
Hotels, Restaurants & Leisure — 0.1%
MGM Resorts International, 7.75%, 03/15/22			5,000		5,204,250
Media — 0.1%
Cengage Learning, Inc., 9.50%, 06/15/24(d)			4,500		3,037,500
Oil, Gas & Consumable Fuels — 0.1%
Occidental Petroleum Corp., 2.70%, 08/15/22			5,000		4,600,000
Pharmaceuticals — 0.1%
Bausch Health Cos., Inc., 6.50%, 03/15/22(d)			5,000		5,085,000
Specialty Retail — 0.3%
PetSmart, Inc., 7.13%, 03/15/23(d)			6,000		5,820,000
Staples, Inc.
7.50%, 04/15/26(d)			1,400		1,222,970
10.75%, 04/15/27(d)			13,398		9,115,597
					16,158,567
Wireless Telecommunication Services — 0.1%
Sprint Corp., 7.25%, 09/15/21			5,000		5,240,250
Total Corporate Bonds — 3.2% (Cost: $159,236,714)					159,297,008
Floating Rate Loan Interests(i)
Diversified Telecommunication Services — 0.1%
Windstream Services LLC (FKA Windstream Corp.), Term Facility (DIP), (1 mo. LIBOR US + 2.500%, 0.00% Floor), 2.68%, 02/26/21			5,500		5,390,000
Health Care Technology — 0.2%
athenahealth, Inc., Term B Loan (First Lien), (3 mo. LIBOR US + 4.50%, 0.00% Floor), 5.28%, 02/11/26(b)			13,712		13,198,272
Leisure Products — 0.1%
NorthPole Newco S.à r.l., Tranche B-1 Term Loan, (3 mo. LIBOR US + 7.000%, 0.00% Floor), 8.45%, 03/18/25			4,344		3,811,750
Software — 0.3%
Blackboard, Inc., Term B-5 Loan (First Lien), (3 mo. LIBOR US + 6.000%, 1.00% Floor), 7.00%, 06/30/24			14,925		13,306,533
Total Floating Rate Loan Interests — 0.7% (Cost: $37,168,456)					35,706,555

Security		Shares		Value
Investment Companies
Equity Funds — 0.2%
Altaba, Inc. Escrow(b)			445,570	$	9,067,350
Fixed-Income Funds — 0.7%
iShares iBoxx High Yield Corporate Bond ETF(j)			440,927		36,341,203
Total Investment Companies — 0.9% (Cost: $41,796,682)					45,408,553
Preferred Securities
Preferred Stocks — 0.4%
Health Care Equipment & Supplies — 0.3%
Danaher Corp., Series B, 5.00%(h)			16,721		17,364,591
Pharmaceuticals — 0.1%
Elanco Animal Health, Inc., 5.00%(h)			155,400		5,909,862
Total Preferred Securities — 0.4% (Cost: $24,491,000)					23,274,453
Rights
Pharmaceuticals — 0.0%
Bristol-Myers Squibb Co., CVR(a)			361,183		1,188,292
Total Rights — 0.0% (Cost: $1,255,877)					1,188,292
Total Long-Term Investments — 12.3% (Cost: $591,827,443)					618,958,618
		Par (000)
Short-Term Securities
Borrowed Bond Agreements — 0.0%
Citigroup Global Markets, Inc., (0.15)% (Purchased on 03/23/20 to be repurchased at $1,409,595, collateralized by T-Mobile U.S.A., Inc., 5.13% due at 04/15/25, par and fair value of USD 1,500,000 and $1,530,000, respectively), Open(k)(l)	USD		1,410		1,410,000
		Shares
Money Market Funds — 85.7%
BlackRock Liquidity Funds, T-Fund, Institutional Class, 0.11%(j)(m)			4,284,012,733		4,284,012,733
SL Liquidity Series, LLC, Money Market Series, 0.63%(j)(m)(n)			6,652,323		6,658,975
					4,290,671,708
		Par (000)
Time Deposits — 0.2%
Canada — 0.0%
Brown Brothers Harriman & Co., 0.04%, 06/01/20	CAD		2		1,422

SCHEDULE OF INVESTMENTS 9

Schedule of Investments  (continued) May 31, 2020 BlackRock Event Driven Equity Fund (Percentages shown are based on Net Assets)

Security		Par             (000)		Value
United Kingdom — 0.2%
Brown Brothers Harriman & Co., 0.01%, 06/01/20	GBP		1	$	1,969
Citibank, London, (0.66)%, 06/01/20	EUR		6,494		7,208,403
					7,210,372
					7,211,794
Total Short-Term Securities — 85.9% (Cost: $4,299,189,939)					4,299,293,502
Total Investments Before Borrowed Bonds — 98.2% (Cost: $4,891,017,382)					4,918,252,120
Borrowed Bonds
Corporate Bonds — (0.0)%
Wireless Telecommunication Services — (0.0)%
T-Mobile U.S.A., Inc., 5.13%, 04/15/25	USD		1,500		(1,530,000	)
Total Borrowed Bonds — (0.0)% (Proceeds: $(1,511,250))					(1,530,000	)
Total Investments — 98.2% (Cost: $4,889,506,132)					4,916,722,120
Other Assets Less Liabilities — 1.8%				88,479,243
Net Assets — 100.0%				$    5,005,201,363

^(a)  Non-income producing security.

^(b)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(c)  All or a portion of this security is on loan.

^(d)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(e)  All or a portion of the security has been pledged as collateral in connection with outstanding borrowed bonds.

^(f)  Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end.

^(g)  Issuer filed for bankruptcy and/or is in default.

^(h)  Convertible security.

⁽ⁱ⁾  Variable rate security. Rate shown is the rate in effect as of period end.

^(j)  Affiliate of the Fund.

^(k)  Certain agreements have no stated maturity and can be terminated by either party at any time.

^(l)  The amount to be repurchased assumes the maturity will be the day after the period end.

^(m)  Annualized 7-day yield as of period end.

⁽ⁿ⁾  All or a portion of this security was purchased with the cash collateral from loaned securities.

Affiliates

Investments in issuers considered to be an affiliate/affiliates of the Fund during the period ended May 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliated Issuer	Shares Held at 09/30/19	Shares Purchased		Shares Sold		Shares Held at 05/31/20		Value at 05/31/20		Income			Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class	2,874,770,397	1,409,242,336	(b)	—		4,284,012,733	$	4,284,012,733	$	27,979,554		$	7,569		$	—
iShares iBoxx High Yield Corporate Bond ETF	—	440,927		—		440,927		36,341,203		106,015			—			1,171,526
SL Liquidity Series, LLC, Money Market Series	7,737,701	—		(1,085,378	)(b)	6,652,323		6,658,975		743,096	(c)		(1,782	)		3,648
							$	4,327,012,911	$	28,828,665		$	5,787		$	1,175,174

^(a)  Includes net capital gain distributions, if applicable.

^(b)  Represents net shares purchased (sold).

^(c)  Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
S&P 500 E-Mini Index		716		06/19/20	$	108,904	$	17,035,607

10 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (continued) May 31, 2020 BlackRock Event Driven Equity Fund

Centrally Cleared Credit Default Swaps — Sell Protection

Reference Obligation/Index	Financing Rate Received by the Fund			Payment Frequency		Termination Date		Credit Rating(a)			Notional Amount (000)(b)		Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
CDX.NA.HY.34.V4		5.00	%		Quarterly		06/20/25		B+	USD		220,675	$	(1,534,157	)	$	(11,476,913	)	$	9,942,756

^(a)  Using the rating of the issuer or the underlying securities of the index, as applicable, provided by S&P Global Ratings.

^(b)  The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of agreement.

OTC Total Return Swaps^(a)

Reference Entity	Counterparty	Termination Date		Net Notional			Unrealized Appreciation (Depreciation)			Net Value of Reference Entity			Gross Notional Amount Net Asset Percentage
Equity Securities Long/Short	Barclays Bank PLC		10/01/20–01/12/24	$	92,302,145			$(1,529,902	)(b)	$	90,936,844			1.9	%
	Citibank N.A.		02/24/23		143,193,380			11,768,999	(c)		157,076,708			2.9
	Citibank N.A.		02/24/23		(113,564,601	)		(4,093,962	)(d)		(117,389,752	)		2.9
	Credit Suisse International		02/08/23		236,305,464			3,903,176	(e)		239,956,271			11.7
	Goldman Sachs Bank USA		08/31/21		(3,131	)		616	(f)		(2,412	)		0.0
	Goldman Sachs Bank USA		02/27/23		822,082,776			(20,196,670	)(g)		803,873,918			29.5
	JPMorgan Chase Bank N.A.		02/08/23		106,829,976			5,174,838	(h)		110,910,049			5.1
	JPMorgan Chase Bank N.A.		02/08/23		36,333,740			458,591	(i)		36,318,112			0.7
	Morgan Stanley & Co. International PLC		12/04/22–03/27/23		63,651,793			(2,781,351	)(j)		61,064,836			1.3
	Morgan Stanley & Co. International PLC		02/27/23–05/19/23		(14,944,327	)		14,471,195	(k)		(587,467	)		4.1
	Morgan Stanley & Co. International PLC		05/15/23–05/18/23		(3,409,254	)		(1,138,516	)		(4,547,770	)		0.1
	UBS AG		03/01/23–12/10/24		79,734,228			2,517,038	(l)		84,977,300			9.8
								$8,554,052		$	1,462,586,637

^(a)  The Fund receives or pays the total return on a portfolio of long and short positions underlying the total return swap. In addition, the Fund pays or receives a variable rate of interest, based on a specified benchmark, plus or minus a spread in a range of 0 — 300 basis points. The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions. The following are the specified benchmarks used in determining the variable rate of interest:

Canada 1 Month Bankers’ Acceptances Rate

Euro Interbank Offered Rate:

  EUR 1 Month

  EUR 1 Week

Euro OverNight Index Average

Intercontinental Exchange LIBOR:

  EUR 1 Month

  USD 1 Month

  USD 1 Week

U.S. Overnight Federal Funds Effective Rate

USD Overnight Bank Funding Rate

^(b)  Amount includes $(164,601) of net dividends and financing fees.

^(c)  Amount includes $(2,114,329) of net dividends and financing fees.

^(d)  Amount includes $(268,811) of net dividends and financing fees.

^(e)  Amount includes $252,369 of net dividends and financing fees.

^(f)  Amount includes $(103) of net dividends and financing fees.

^(g)  Amount includes $(1,987,812) of net dividends and financing fees.

^(h)  Amount includes $1,094,765 of net dividends and financing fees.

⁽ⁱ⁾  Amount includes $474,219 of net dividends and financing fees.

^(j)  Amount includes $(194,394) of net dividends and financing fees.

^(k)  Amount includes $114,335 of net dividends and financing fees.

^(l)  Amount includes $(2,726,034) of net dividends and financing fees.

SCHEDULE OF INVESTMENTS 11

Schedule of Investments  (continued) May 31, 2020 BlackRock Event Driven Equity Fund

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Barclays Bank PLC as of period end, termination dates October 1, 2020 to January 12, 2024:

	Shares		Value			% of Basket Value
Reference Entity — Long
Common Stocks
Capital Markets
Bolsas y Mercados Espanoles SHMSF SA		26,015	$	951,219			1.1	%
Commercial Services & Supplies
Advanced Disposal Services, Inc.		1,680,649		52,402,636			57.6
Electronic Equipment, Instruments & Components
Fitbit, Inc., Class A		1,617,662		10,255,977			11.3
Health Care Equipment & Supplies
Wright Medical Group NV		785,198		23,202,601			25.5
Hotels, Restaurants & Leisure
Caesars Entertainment Corp.		502,846		5,727,416			6.3
Total Reference Entity — Long				92,539,849
Reference Entity — Short
Common Stocks
Hotels, Restaurants & Leisure
Eldorado Resorts, Inc.		45,206		(1,603,005	)		(1.8	)
Net Value of Reference Entity — Barclays Bank PLC			$	90,936,844

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Citibank N.A. as of period end, termination date February 24, 2023:

	Shares		Value			% of Basket Value
Reference Entity — Long
Common Stocks
Life Sciences Tools & Services
QIAGEN NV		3,599,711	$	157,077,281			100.0	%
Reference Entity — Short
Common Stocks
Hotels, Restaurants & Leisure
Flutter Entertainment PLC		5		(573	)		(0.0	)
Net Value of Reference Entity — Citibank N.A			$	157,076,708

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Citibank N.A. as of period end, termination date February 24, 2023:

		Shares		Value			% of Basket Value
Reference Entity — Long
Common Stocks
Aerospace & Defense
Howmet Aerospace, Inc.			51,939	$	679,362			(0.6	)%
Health Care Providers & Services
Anthem, Inc.			49,296		14,498,446			(12.3	)
Cigna Corp.			2,102		414,767			(0.4	)
					14,913,213
Media
ViacomCBS, Inc., Class B			22,974		476,481			(0.4	)
Metals & Mining
Arconic Corp.			12,984		187,879			(0.2	)
Oil, Gas & Consumable Fuels
Williams Cos., Inc.			127,180		2,598,287			(2.2	)
	��
Total Reference Entity — Long					18,855,222
Reference Entity — Short
Common Stocks
Banks
Bank of America Corp.			2,041		(49,229	)		0.0
JPMorgan Chase & Co.			524		(50,990	)		0.1
					(100,219	)
Chemicals
Air Products and Chemicals, Inc.			22		(5,316	)		0.0
Albemarle Corp.			37		(2,831	)		0.0
Eastman Chemical Co.			33		(2,247	)		0.0
Ecolab, Inc.			25		(5,315	)		0.0
FMC Corp.			45		(4,428	)		0.0
International Flavors & Fragrances, Inc.			25		(3,330	)		0.0
Livent Corp.			42		(283	)		0.0
LyondellBasell Industries NV, Class A			33		(2,104	)		0.0
Mosaic Co.			141		(1,705	)		0.0
PPG Industries, Inc.			31		(3,152	)		0.0
					(30,711	)
Construction Materials
Martin Marietta Materials, Inc.			17		(3,265	)		0.0
Vulcan Materials Co.			30		(3,250	)		0.0
					(6,515	)
Containers & Packaging
Avery Dennison Corp.			33		(3,652	)		0.0
Ball Corp.			87		(6,200	)		0.0
International Paper Co.			65		(2,213	)		0.0
Sealed Air Corp.			81		(2,600	)		0.0
Westrock Co.			54		(1,515	)		0.0
					(16,180	)
Health Care Providers & Services
UnitedHealth Group, Inc.			27,272		(8,313,869	)		7.1

12 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (continued) May 31, 2020 BlackRock Event Driven Equity Fund

	Shares		Value			% of Basket Value
Life Sciences Tools & Services
Mettler-Toledo International, Inc.		5,921	$	(4,707,195	)		4.0	%
Waters Corp.		20,824		(4,161,676	)		3.6
				(8,868,871	)
Metals & Mining
Freeport-McMoRan, Inc.		198		(1,796	)		0.0
Newmont Corp.		87		(5,087	)		0.0
Nucor Corp.		57		(2,409	)		0.0
				(9,292	)
Oil, Gas & Consumable Fuels
Enbridge, Inc.		29,039		(942,316	)		0.8
Kinder Morgan, Inc.		83,854		(1,324,893	)		1.2
				(2,267,209	)
Pharmaceuticals
Johnson & Johnson		3,597		(535,054	)		0.4
Merck & Co., Inc.		6,642		(536,142	)		0.5
				(1,071,196	)
Semiconductors & Semiconductor Equipment
Advanced Micro Devices, Inc.		48,250		(2,595,850	)		2.2
Analog Devices, Inc.		17,815		(2,012,204	)		1.7
Applied Materials, Inc.		38,227		(2,147,593	)		1.8
ASML Holding NV, NY Shares		6,281		(2,069,652	)		1.8
KLA Corp.		13,547		(2,383,730	)		2.0
Lam Research Corp.		10,679		(2,922,522	)		2.5
Maxim Integrated Products, Inc.		31,562		(1,820,496	)		1.6
Microchip Technology, Inc.		19,974		(1,917,904	)		1.6
Micron Technology, Inc.		38,521		(1,845,541	)		1.6
MKS Instruments, Inc.		6,136		(648,146	)		0.6
Monolithic Power Systems, Inc.		3,237		(678,961	)		0.6
NXP Semiconductors NV		104,331		(10,026,209	)		8.5
ON Semiconductor Corp.		31,045		(511,932	)		0.4
Qorvo, Inc.		11,276		(1,181,048	)		1.0
Skyworks Solutions, Inc.		16,174		(1,917,266	)		1.6
Taiwan Semiconductor Manufacturing Co. Ltd.		39,299		(1,977,919	)		1.7
Teradyne, Inc.		16,090		(1,078,352	)		0.9
Texas Instruments, Inc.		16,419		(1,949,592	)		1.7
Xilinx, Inc.		15,577		(1,432,305	)		1.2
				(41,117,222	)
Investment Companies
Equity Funds
Alerian MLP ETF		359,655		(9,645,947	)		8.2
Energy Select Sector SPDR Fund		2,200		(85,272	)		0.1
Industrial Select Sector SPDR Fund		789,027		(53,393,457	)		45.5
iShares U.S. Real Estate ETF		353		(27,329	)		0.0
SPDR S&P 500 ETF Trust		36,998		(11,259,232	)		9.6
SPDR S&P Regional Banking ETF		850		(32,453	)		0.0
				(74,443,690	)
Total Reference Entity — Short				(136,244,974	)
Net Value of Reference Entity — Citibank N.A			$	(117,389,752	)

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Credit Suisse International as of period end, termination date February 8, 2023:

	Shares		Value			% of Basket Value
Reference Entity — Long
Common Stocks
Capital Markets
E*TRADE Financial Corp.		1,724,750	$	78,545,115			32.8	%
Legg Mason, Inc.		1,392,773		69,401,878			28.9
TD Ameritrade Holding Corp.		2,125,369		79,212,503			33.0
				227,159,496
Equity Real Estate Investment Trusts (REITs)
Northview Apartment Real Estate Investment Trust		256		6,457			0.0
Health Care Equipment & Supplies
Wright Medical Group NV		1,319,659		38,995,924			16.2
Life Sciences Tools & Services
QIAGEN NV		3,117,418		136,031,905			56.7
Total Reference Entity — Long			402,193,782
Reference Entity — Short
Common Stocks
Capital Markets
Charles Schwab Corp.		2,303,263		(82,710,175	)		(34.5	)
Morgan Stanley		1,799,261		(79,527,336	)		(33.1	)
Total Reference Entity — Short				(162,237,511	)
Net Value of Reference Entity — Credit Suisse International			$	239,956,271

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Goldman Sachs Bank USA as of period end, termination date August 31, 2021:

	Shares		Value			% of Basket Value
Reference Entity — Short
Common Stocks
Banks
Bank of America Corp.		100	$	(2,412	)		100.0	%
Net Value of Reference Entity — Goldman Sachs Bank USA			$	(2,412	)

SCHEDULE OF INVESTMENTS 13

Schedule of Investments  (continued) May 31, 2020 BlackRock Event Driven Equity Fund

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Goldman Sachs Bank USA as of period end, termination date February 27, 2023:

	Shares		Value			% of Basket Value
Reference Entity — Long
Common Stocks
Auto Components
Delphi Technologies PLC		1,494,257	$	19,246,030			2.4	%
Biotechnology
Portola Pharmaceuticals, Inc.		1,056,429		18,962,901			2.4
Capital Markets
E*TRADE Financial Corp.		2,109,410		96,062,531			11.9
Legg Mason, Inc.		873,009		43,502,039			5.4
TD Ameritrade Holding Corp.		2,665,690		99,350,266			12.4
				238,914,836
Commercial Services & Supplies
Advanced Disposal Services, Inc.		3,074,778		95,871,578			11.9
Electronic Equipment, Instruments & Components
Anixter International, Inc.		1,354,295		129,619,575			16.1
Fitbit, Inc., Class A		5,438,224		34,478,340			4.3
				164,097,915
Equity Real Estate Investment Trusts (REITs)
Taubman Centers, Inc.		1,732,451		71,619,524			8.9
Health Care Equipment & Supplies
Wright Medical Group NV		4,577,483		135,264,623			16.8
Hotels, Restaurants & Leisure
Caesars Entertainment Corp.		8,386,535		95,522,634			11.9
Internet & Direct Marketing Retail
Grubhub, Inc.		445,641		25,285,670			3.1
Media
Central European Media Enterprises Ltd., Class A		2,528,942		10,115,768			1.3
Software
LogMeIn, Inc.		1,125,721		95,573,713			11.9
Specialty Retail
Tiffany & Co.		946,846		121,319,378			15.1
Total Reference Entity — Long			1,091,794,570
Reference Entity — Short
Common Stocks
Auto Components
BorgWarner, Inc.		643,577		(20,691,000	)		(2.6	)

	Shares		Value			% of Basket Value
Capital Markets
Charles Schwab Corp.		2,888,808	$	(103,737,095	)		(12.9	)%
Morgan Stanley		2,200,653		(97,268,863	)		(12.1	)
				(201,005,958	)
Hotels, Restaurants & Leisure
Eldorado Resorts, Inc.		753,130		(26,705,990	)		(3.3	)
Road & Rail
Uber Technologies, Inc.		857,859		(31,157,439	)		(3.9	)
Trading Companies & Distributors
WESCO International, Inc.		251,059		(8,360,265	)		(1.0	)
Total Reference Entity — Short				(287,920,652	)
Net Value of Reference Entity — Goldman Sachs Bank USA			$	803,873,918

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with JPMorgan Chase Bank N.A. as of period end, termination date February 8, 2023:

	Shares		Value			% of Basket Value
Reference Entity — Long
Common Stocks
Capital Markets
TD Ameritrade Holding Corp.		1,389,826	$	51,798,815			46.7	%
Electronic Equipment, Instruments & Components
Anixter International, Inc.		458,244		43,858,533			39.5
Hotels, Restaurants & Leisure
Caesars Entertainment Corp.		5,707,610		65,009,678			58.6
Insurance
Willis Towers Watson PLC		57,649		11,696,982			10.6
Software
RIB Software SE		426,569		13,731,880			12.4
Transportation Infrastructure
DP World PLC		823,563		12,977,063			11.7
Total Reference Entity — Long				199,072,951
Reference Entity — Short
Common Stocks
Capital Markets
Charles Schwab Corp.		1,506,154		(54,085,990	)		(48.8	)
Hotels, Restaurants & Leisure
Eldorado Resorts, Inc.		512,352		(18,168,002	)		(16.4	)
Insurance
Aon PLC, Class A		62,206		(12,251,471	)		(11.0	)

14 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (continued) May 31, 2020 BlackRock Event Driven Equity Fund

	Shares		Value			% of Basket Value
Trading Companies & Distributors
WESCO International, Inc.		109,833	$	(3,657,439	)		(3.3	)%
Total Reference Entity — Short				(88,162,902	)
Net Value of Reference Entity — JPMorgan Chase Bank N.A			$	110,910,049

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with JPMorgan Chase Bank N.A. as of period end, termination date February 8, 2023:

	Shares		Value		% of Basket Value
Reference Entity — Long
Common Stocks
Semiconductors & Semiconductor Equipment
NXP Semiconductors NV		377,920	$	36,318,112		100.0	%
Net Value of Reference Entity — JPMorgan Chase Bank N.A			$	36,318,112

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Morgan Stanley & Co. International PLC as of period end, termination dates December 4, 2022 to

March 27, 2023:

	Shares		Value		% of Basket Value
Reference Entity — Long
Common Stocks
Specialty Retail
Tiffany & Co.		476,585	$	61,064,836		100.0	%
Net Value of Reference Entity — Morgan Stanley & Co. International PLC			$	61,064,836

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Morgan Stanley & Co. International PLC as of period end, termination dates February 27, 2023 to May 19, 2023:

	Shares		Value		% of Basket Value
Reference Entity — Long
Common Stocks
Aerospace & Defense
Raytheon Technologies Corp.		121,506	$	7,839,567		(1,334.5	)%
TransDigm Group, Inc.		58,944		25,040,590		(4,262.4	)
				32,880,157

	Shares		Value			% of Basket Value
Building Products
Carrier Global Corp.		287,139	$	5,877,735			(1,000.5	)%
Chemicals
Corteva, Inc.		724,526		19,786,805			(3,368.2	)
Dow, Inc.		100,845		3,892,617			(662.6	)
DuPont de Nemours, Inc.		490,868		24,901,734			(4,238.8	)
				48,581,156
Health Care Providers & Services
Anthem, Inc.		22,866		6,725,119			(1,144.8	)
Cigna Corp.		15,615		3,081,152			(524.5	)
Humana, Inc.		46,054		18,912,075			(3,219.2	)
				28,718,346
Machinery
Otis Worldwide Corp.		93,746		4,935,727			(840.2	)
Total Reference Entity — Long				120,993,121
Reference Entity — Short
Common Stocks
Banks
Bank of America Corp.		4,300		(103,716	)		17.6
Citigroup, Inc.		2,521		(120,781	)		20.6
JPMorgan Chase & Co.		1,148		(111,712	)		19.0
				(336,209	)
Chemicals
Air Products and Chemicals, Inc.		10,822		(2,615,136	)		445.2
Albemarle Corp.		30,502		(2,334,013	)		397.3
Eastman Chemical Co.		32,880		(2,238,470	)		381.0
Ecolab, Inc.		13,025		(2,768,855	)		471.3
FMC Corp.		22,404		(2,204,778	)		375.3
International Flavors & Fragrances, Inc.		15,579		(2,074,967	)		353.2
Livent Corp.		1,851		(12,476	)		2.1
LyondellBasell Industries NV, Class A		39,889		(2,543,323	)		432.9
Mosaic Co.		157,771		(1,907,451	)		324.7
PPG Industries, Inc.		24,866		(2,528,126	)		430.4
				(21,227,595	)
Commercial Services & Supplies
Republic Services, Inc.		13,780		(1,177,639	)		200.5
Waste Management, Inc.		11,176		(1,193,038	)		203.1
				(2,370,677	)
Construction Materials
Martin Marietta Materials, Inc.		10,240		(1,967,002	)		334.8
Vulcan Materials Co.		17,686		(1,915,747	)		326.1
				(3,882,749	)
Containers & Packaging
Avery Dennison Corp.		18,095		(2,002,574	)		340.9
Ball Corp.		30,565		(2,178,062	)		370.8
International Paper Co.		55,404		(1,886,506	)		321.1
Sealed Air Corp.		65,322		(2,096,836	)		356.9
Westrock Co.		64,040		(1,796,962	)		305.9
				(9,960,940	)
Health Care Providers & Services
UnitedHealth Group, Inc.		9,626		(2,934,486	)		499.5
Metals & Mining
Freeport-McMoRan, Inc.		230,699		(2,092,440	)		356.2

SCHEDULE OF INVESTMENTS 15

Schedule of Investments  (continued) May 31, 2020 BlackRock Event Driven Equity Fund

	Shares		Value			% of Basket Value
Metals & Mining
Newmont Corp.		37,082	$	(2,168,184	)		369.1	%
Nucor Corp.		55,987		(2,366,011	)		402.7
				(6,626,635	)
Investment Companies
Equity Funds
Industrial Select Sector SPDR Fund		507,144		(34,318,435	)		5,841.8
iShares Russell 2000 ETF		60,199		(8,361,641	)		1,423.3
iShares U.S. Real Estate ETF		43,615		(3,376,673	)		574.8
Materials Select Sector SPDR Fund		238,044		(13,199,540	)		2,246.8
SPDR S&P 500 ETF Trust		40,717		(12,390,997	)		2,109.2
SPDR S&P Regional Banking ETF		1,922		(73,382	)		12.5
VanEck Vectors Semiconductor ETF		17,873		(2,520,629	)		429.1
				(74,241,297	)
Total Reference Entity — Short				(121,580,588	)
Net Value of Reference Entity — Morgan Stanley & Co. International PLC			$	(587,467	)

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Morgan Stanley & Co International PLC as of period end, termination dates May 15, 2023 to May 18, 2023:

	Shares		Value			% of Basket Value
Reference Entity — Short
Common Stocks
Airlines
Delta Air Lines, Inc.		50,000	$	(1,260,500	)		27.7	%
Health Care Equipment & Supplies
Envista Holdings Corp.		155,500		(3,287,270	)		72.3
Net Value of Reference Entity — Morgan Stanley & Co. International PLC			$	(4,547,770	)

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with UBS AG as of period end, termination dates March 1, 2023 to December 10, 2024:

	Shares		Value		% of Basket Value
Reference Entity — Long
Common Stocks
Auto Components
Delphi Technologies PLC		1,181,361	$	15,215,930		17.9	%
Faurecia SE		646,104		25,050,602		29.5
				40,266,532

	Shares		Value			% of Basket Value
Automobiles
Fiat Chrysler Automobiles NV		15,919,775	$	142,092,130			167.2	%
Diversified Financial Services
FGL Holdings		1,934,175		21,389,074			25.1
Electrical Equipment
OSRAM Licht AG		481,119		21,741,815			25.6
Electronic Equipment, Instruments & Components
Ingenico Group SA		578,586		80,533,339			94.8
Total Reference Entity — Long				306,022,890
Reference Entity — Short
Common Stocks
Auto Components
BorgWarner, Inc.		508,812		(16,358,306	)		(19.2	)
Automobiles
Peugeot SA		9,138,881		(131,192,387	)		(154.4	)
Insurance
Fidelity National Financial, Inc.		164,405		(5,244,519	)		(6.2	)
IT Services
Worldline SA		908,959		(68,250,378	)		(80.3	)
Total Reference Entity — Short				(221,045,590	)
Net Value of Reference Entity — UBS AG			$	84,977,300

16 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (continued) May 31, 2020 BlackRock Event Driven Equity Fund

Balances Reported in the Statement of Assets and Liabilities for Centrally Cleared Swaps and OTC Swaps    

	Swap Premium Paid		Swap Premium Received			Unrealized Appreciation		Unrealized Depreciation
Centrally Cleared Swaps(a)	$	—	$	(11,476,913	)	$	9,942,756	$	—
OTC Swaps		—		—			38,294,453		(29,740,401	)

^(a)  Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities and is net of any previously paid (received) swap premium amounts.

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts(a)
Unrealized appreciation	$	—	$	—	$	17,035,607	$	—	$	—	$	—	$	17,035,607
Swaps — centrally cleared(a)
Unrealized appreciation		—		9,942,756		—		—		—		—		9,942,756
Swaps — OTC
Unrealized appreciation; Swap premiums paid		—		—		38,294,453		—		—		—		38,294,453
	$	—	$	9,942,756	$	55,330,060	$	—	$	—	$	—	$	65,272,816
Liabilities — Derivative Financial Instruments
Swaps — OTC
Unrealized depreciation; Swap premiums received	$	—	$	—	$	29,740,401	$	—	$	—	$	—	$	29,740,401

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

For the period ended May 31, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:    

	Commodity Contracts		Credit Contracts			Equity Contracts			Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Net Realized Gain (Loss) from
Futures contracts	$	—	$	—		$	5,236,605		$	—	$	—	$	—	$	5,236,605
Swaps		—		(4,808,592	)		(19,256,588	)		—		—		—		(24,065,180	)
	$	—	$	(4,808,592	)	$	(14,019,983	)	$	—	$	—	$	—	$	(18,828,575	)
Net Change in Unrealized Appreciation (Depreciation) on
Futures contracts	$	—	$	—		$	17,035,607		$	—	$	—	$	—	$	17,035,607
Swaps		—		10,061,508			12,154,145			—		—		—		22,215,653
	$	—	$	10,061,508		$	29,189,752		$	—	$	—	$	—	$	39,251,260

SCHEDULE OF INVESTMENTS 17

Schedule of Investments  (continued) May 31, 2020 BlackRock Event Driven Equity Fund

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts Average notional value of contracts — long	$	153,351,035
Credit default swaps
Average notional value — buy protection		93,558,333
Average notional value — sell protection		12,068,333
Total return swaps Average notional amount		1,819,281,613

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Derivative Financial Instruments — Offsetting as of Period End

The Fund’s derivative assets and liabilities (by type) were as follows:

	Assets			Liabilities
Derivative Financial Instruments
Futures contracts	$	139,620		$	—
Swaps — centrally cleared		1,307,526			—
Swaps — OTC(a)		38,294,453			29,740,401
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	39,741,599		$	29,740,401
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(1,447,146	)		—
Total derivative assets and liabilities subject to an MNA	$	38,294,453		$	29,740,401

^(a)  Includes unrealized appreciation (depreciation) on OTC swaps in the Statement of Assets and Liabilities.

The following tables present the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset(a)			Non- Cash Collateral Received		Cash Collateral Received(b)			Net Amount of Derivative Assets(c)
Citibank N.A	$	11,768,999	$	(4,093,962	)	$	—	$	(7,675,037	)	$	—
Credit Suisse International		3,903,176		—			—		(3,903,176	)		—
Goldman Sachs Bank USA		616		(616	)		—		—			—
JPMorgan Chase Bank N.A		5,633,429		—			—		(5,633,429	)		—
Morgan Stanley & Co. International PLC		14,471,195		(3,919,867	)		—		(9,760,000	)		791,328
UBS AG		2,517,038		—			—		—			2,517,038
	$	38,294,453	$	(8,014,445	)	$	—	$	(26,971,642	)	$	3,308,366
Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset(a)			Non- Cash Collateral Pledged		Cash Collateral Pledged			Net Amount of Derivative Liabilities(d)
Barclays Bank PLC	$	1,529,902	$	—		$	—	$	—		$	1,529,902
Citibank N.A		4,093,962		(4,093,962	)		—		—			—
Goldman Sachs Bank USA		20,196,670		(616	)		—		(17,860,000	)		2,336,054
Morgan Stanley & Co. International PLC		3,919,867		(3,919,867	)		—		—			—
	$	29,740,401	$	(8,014,445	)	$	—	$	(17,860,000	)	$	3,865,956

^(a)  The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA.

^(b)  Excess of collateral received from the individual counterparty is not shown for financial reporting purposes.

^(c)  Net amount represents the net amount receivable from the counterparty in the event of default.

^(d)  Net amount represents the net amount payable due to the counterparty in the event of default.

18 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (continued) May 31, 2020 BlackRock Event Driven Equity Fund

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

	Level 1		Level 2			Level 3		Total
Assets
Investments
Long-Term Investments
Common Stocks
Aerospace & Defense	$	35,585,997	$	—		$	—	$	35,585,997
Banks		1,004,315		—			—		1,004,315
Biotechnology		1,214,954		—			—		1,214,954
Capital Markets		—		25,025,200			—		25,025,200
Chemicals		41,950,043		1,850,607			—		43,800,650
Commercial Services & Supplies		12,511,166		—			—		12,511,166
Diversified Consumer Services		3,609,383		—			—		3,609,383
Diversified Telecommunication Services		7,238,059		—			—		7,238,059
Electric Utilities		—		—			2,057,055		2,057,055
Electrical Equipment		—		9,004,535			—		9,004,535
Electronic Equipment, Instruments & Components		10,952,488		—			—		10,952,488
Equity Real Estate Investment Trusts (REITs)		3,251,745		—			—		3,251,745
Food & Staples Retailing		1,726,145		—			—		1,726,145
Food Products		11,334,478		—			—		11,334,478
Health Care Equipment & Supplies		40,955,096		—			—		40,955,096
Health Care Providers & Services		32,714,441		—			—		32,714,441
Health Care Technology		1,601,593		—			—		1,601,593
Household Durables		2,487,683		—			—		2,487,683
Insurance		2,098,180		—			—		2,098,180
Leisure Products		1,078,503		—			—		1,078,503
Life Sciences Tools & Services		11,067,440		—			—		11,067,440
Machinery		175,089		—			—		175,089
Media		9,678,848		—			—		9,678,848
Metals & Mining		13,350,326		—			—		13,350,326
Oil, Gas & Consumable Fuels		17,863,992		—			—		17,863,992
Personal Products		9,546,940		—			—		9,546,940
Pharmaceuticals		32,081,795		—			—		32,081,795
Software		6,728,326		—			—		6,728,326
Wireless Telecommunication Services		4,339,335		—			—		4,339,335
Corporate Bonds(a)		—		159,272,008			25,000		159,297,008
Floating Rate Loan Interests(a)		—		22,508,283			13,198,272		35,706,555
Investment Companies(a)		36,341,203		—			9,067,350		45,408,553
Preferred Securities(a)		23,274,453		—			—		23,274,453
Rights(a)		1,188,292		—			—		1,188,292
Short-Term Securities
Borrowed Bond Agreements		—		1,410,000			—		1,410,000
Money Market Funds		4,284,012,733		—			—		4,284,012,733
Time Deposits		—		7,211,794			—		7,211,794
Liabilities
Borrowed Bonds(a)		—		(1,530,000	)		—		(1,530,000	)
	$	4,660,963,041	$	224,752,427		$	24,347,677		4,910,063,145
Investments Valued at NAV(b)									6,658,975
								$	4,916,722,120
Derivative Financial Instruments(c)
Assets
Credit Contracts	$	—	$	9,942,756		$	—	$	9,942,756
Equity Contracts		17,035,607		38,294,453			—		55,330,060

SCHEDULE OF INVESTMENTS 19

Schedule of Investments  (continued) May 31, 2020 BlackRock Event Driven Equity Fund

	Level 1		Level 2			Level 3		Total
Liabilities
Equity Contracts	$	—	$	(29,740,401	)	$	—	$	(29,740,401	)
	$	17,035,607	$	18,496,808		$	—	$	35,532,415

^(a)  See above Schedule of Investments for values in each industry.

^(b)  Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

^(c)  Derivative financial instruments are swaps and futures contracts. Swaps and futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

20 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Statement of Assets and Liabilities

May 31, 2020

	BlackRock Event
	Driven Equity
	Fund
ASSETS
Investments at value — unaffiliated(a)(b)	$	591,239,209
Investments at value — affiliated(c)		4,327,012,911
Cash pledged:
Collateral — OTC derivatives		75,980,000
Futures contracts		9,546,000
Centrally cleared swaps		27,259,000
Foreign currency at value(d)		1,606
Receivables:
Investments sold		2,155,601
Securities lending income — affiliated		164,084
Swaps		140,269,826
Capital shares sold		15,101,400
Dividends — affiliated		385,146
Dividends — unaffiliated		403,004
Interest — unaffiliated		1,934,135
Variation margin on futures contracts		139,620
Variation margin on centrally cleared swaps		1,307,526
Unrealized appreciation on OTC swaps		38,294,453
Prepaid expenses		299,194
Total assets		5,231,492,715
LIABILITIES
Bank overdraft		185,709
Cash received as collateral for OTC derivatives		101,690,000
Borrowed bonds at value(e)		1,530,000
Cash collateral on securities loaned at value		6,654,811
Payables:
Investments purchased		2,873,939
Swaps		68,864,134
Capital shares redeemed		9,187,186
Interest expense		9,872
Investment advisory fees		4,384,275
Directors’ and Officer’s fees		1,316
Other accrued expenses		408,547
Other affiliates		678,169
Service and distribution fees		82,993
Unrealized depreciation on OTC swaps		29,740,401
Total liabilities		226,291,352
NET ASSETS	$	5,005,201,363
NET ASSETS CONSIST OF
Paid-in capital	$	5,001,779,135
Accumulated earnings		3,422,228
NET ASSETS	$	5,005,201,363
(a) Investments at cost — unaffiliated	$	565,179,645
(b) Securities loaned at value	$	6,523,117
(c)  Investments at cost — affiliated	$	4,325,837,737
(d) Foreign currency at cost	$	1,584
(e) Proceeds received from borrowed bonds	$	1,511,250

FINANCIAL STATEMENTS 21

Statement of Assets and Liabilities  (continued)

May 31, 2020

	BlackRock Event
	Driven Equity
	Fund
NET ASSET VALUE
Institutional
Net assets	$	4,779,208,242
Shares outstanding		492,520,097
Net asset value	$	9.70
Shares authorized		1,100,000,000
Par value	$	0.10
Investor A
Net assets	$	161,797,346
Shares outstanding		17,387,709
Net asset value	$	9.31
Shares authorized		100,000,000
Par value	$	0.10
Investor C
Net assets	$	64,195,775
Shares outstanding		7,710,779
Net asset value	$	8.33
Shares authorized		100,000,000
Par value	$	0.10

See notes to financial statements.

22 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Statements of Operations

	BlackRock Event Driven Equity Fund
		Period from			Year Ended
	10/01/19 to 05/31/20				09/30/19
INVESTMENT INCOME
Dividends — unaffiliated		$	2,053,575		$	1,012,572
Dividends — affiliated			28,085,569			35,518,963
Interest — unaffiliated			5,508,624			10,390,562
Securities lending income — affiliated — net			743,096			62,298
Other income			31,245			—
Foreign taxes withheld			(116,288	)		(13,636	)
Total investment income			36,305,821			46,970,759
EXPENSES
Investment advisory			32,436,211			22,864,927
Transfer agent — class specific			2,931,119			2,091,340
Service and distribution — class specific			636,117			433,501
Registration			364,240			353,785
Accounting services			218,732			166,744
Professional			119,980			131,136
Custodian			97,463			33,716
Printing			46,302			41,866
Directors and Officer			32,933			32,351
Board realignment and consolidation			—			7,235
Miscellaneous			38,904			27,432
Total expenses excluding interest expense			36,922,001			26,184,033
Interest expense — unaffiliated			148,160			540,274
Total expenses			37,070,161			26,724,307
Less:
Fees waived and/or reimbursed by the Manager			(1,928,263	)		(1,160,438	)
Total expenses after fees waived and/or reimbursed			35,141,898			25,563,869
Net investment income			1,163,923			21,406,890
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated			3,834,406			23,170,897
Investments — affiliated			(1,782	)		2,251
Borrowed bonds			18,769			(69,657	)
Capital gain distributions from investment companies — affiliated			7,569			—
Options written			—			(293,328	)
Futures contracts			5,236,605			4,907,217
Foreign currency transactions			(261,855	)		27,323
Swaps			(24,065,180	)		89,179,974
			(15,231,468	)		116,924,677
Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated			13,368,334			11,440,869
Investments — affiliated			1,175,174			(13	)
Borrowed bonds			29,650			(87,625	)
Futures contracts			17,035,607			—
Foreign currency translations			107,360			27,598
Swaps			22,215,653			(18,516,396	)
			53,931,778			(7,135,567	)
Net realized and unrealized gain			38,700,310			109,789,110
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		$	39,864,233		$	131,196,000

See notes to financial statements.

FINANCIAL STATEMENTS 23

Statements of Changes in Net Assets

	BlackRock Event Driven Equity Fund
	Period from
	10/01/19			Year Ended September 30,
	to 05/31/20			2019			2018
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	1,163,923		$	21,406,890		$	2,974,329
Net realized gain (loss)		(15,231,468	)		116,924,677			6,125,196
Net change in unrealized appreciation (depreciation)		53,931,778			(7,135,567	)		12,988,436
Net increase in net assets resulting from operations		39,864,233			131,196,000			22,087,961
DISTRIBUTIONS TO SHAREHOLDERS(a)
Institutional		(128,011,849	)		(20,637,746	)		(9,172,632	)
Investor A		(4,687,762	)		(766,494	)		(1,510,831	)
Investor C		(1,788,885	)		(176,256	)		(298,775	)
Decrease in net assets resulting from distributions to shareholders		(134,488,496	)		(21,580,496	)		(10,982,238	)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from capital share transactions		1,797,158,781			2,367,258,732			630,936,787
NET ASSETS
Total increase in net assets		1,702,534,518			2,476,874,236			642,042,510
Beginning of period		3,302,666,845			825,792,609			183,750,099
End of period	$	5,005,201,363		$	3,302,666,845		$	825,792,609

^(a)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

24 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock Event Driven Equity Fund
	Institutional
	Period from
	10/01/19			Year Ended September 30,
	to 05/31/20			2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.88		$	9.39		$	9.58		$	8.80		$	8.94		$	14.55
Net investment income (loss)(a)		0.00	(b)		0.11			0.07			(0.04	)		(0.06	)		(0.04	)
Net realized and unrealized gain		0.14			0.56			0.20			0.92			0.46			0.60
Net increase from investment operations		0.14			0.67			0.27			0.88			0.40			0.56
Distributions(c)
From net investment income		(0.05	)		(0.06	)		—			—			—			—
From net realized gain		(0.27	)		(0.12	)		(0.46	)		(0.10	)		(0.58	)		(6.17	)
Total distributions		(0.32	)		(0.18	)		(0.46	)		(0.10	)		(0.58	)		(6.17	)
Capital contributions — affiliated(d)		—			—			—			—			0.04			—
Net asset value, end of period	$	9.70		$	9.88		$	9.39		$	9.58		$	8.80		$	8.94
Total Return(e)
Based on net asset value		1.53	%(f)		7.30	%		3.04	%		10.08	%		5.11	%(g)		2.28	%
Ratios to Average Net Assets(h)
Total expenses		1.27	%(i)		1.34	%		1.43	%		1.55	%		1.58	%		2.54	%
Total expenses after fees waived and/or reimbursed		1.20	%(i)		1.28	%		1.36	%		1.41	%		1.42	%		1.89	%
Total expenses after fees waived and/or reimbursed and excluding dividend expense		1.20	%(i)		1.28	%		1.36	%		1.41	%		1.42	%		1.65	%
Total expenses after fees waived and/or reimbursed and excluding dividend expenses, stock loan fees and interest expense		1.19	%(i)		1.25	%		1.30	%		1.38	%		1.38	%		1.38	%
Net investment income (loss)		0.06	%(i)		1.11	%		0.75	%		(0.39	)%		(0.67	)%		(0.26	)%
Supplemental Data
Net assets, end of period (000)	$	4,779,208		$	3,128,313		$	786,155		$	145,557		$	76,046		$	8,077
Portfolio turnover rate(j)		63	%		177	%		135	%		199	%		233	%		81	%

^(a)  Based on average shares outstanding.

^(b)  Amount is less than $0.005 per share.

^(c)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Payment received from affiliates related to certain shareholder transactions.

^(e)  Where applicable, assumes the reinvestment of distributions.

^(f)  Aggregate total return.

^(g)  Includes payment received from affiliates, which impacted the Fund’s total return. Excluding the payment from affiliates, the Fund’s total return is 4.64%.

^(h)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Period from
	10/01/19			Year Ended September 30,
	to 05/31/20			2019			2018			2017			2016			2015
Investments in underlying funds		0.16	%		0.22	%		0.20	%		0.15	%		0.16	%		0.04	%

⁽ⁱ⁾  Annualized.

^(j)  Excludes underlying investments in total return swaps.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 25

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Event Driven Equity Fund (continued)
	Investor A
	Period from
	10/01/19			Year Ended September 30,
	to 05/31/20			2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.49		$	9.03		$	9.22		$	8.48		$	8.65		$	14.31
Net investment income (loss)(a)		(0.01	)		0.08			0.03			(0.06	)		(0.07	)		(0.07	)
Net realized and unrealized gain		0.13			0.54			0.22			0.88			0.44			0.58
Net increase from investment operations		0.12			0.62			0.25			0.82			0.37			0.51
Distributions(b)
From net investment income		(0.03	)		(0.04	)		—			—			—			—
From net realized gain		(0.27	)		(0.12	)		(0.44	)		(0.08	)		(0.58	)		(6.17	)
Total distributions		(0.30	)		(0.16	)		(0.44	)		(0.08	)		(0.58	)		(6.17	)
Capital contributions — affiliated(c)		—			—			—			—			0.04			—
Net asset value, end of period	$	9.31		$	9.49		$	9.03		$	9.22		$	8.48		$	8.65
Total Return(d)
Based on net asset value		1.40	%(e)		7.04	%		2.86	%		9.71	%		4.92	%(f)		1.91	%
Ratios to Average Net Assets(g)
Total expenses		1.52	%(h)		1.59	%		1.69	%		1.86	%		1.92	%		2.85	%
Total expenses after fees waived and/or reimbursed		1.45	%(h)		1.53	%		1.63	%		1.68	%		1.70	%		2.12	%
Total expenses after fees waived and/or reimbursed and excluding dividend expense		1.45	%(h)		1.53	%		1.63	%		1.68	%		1.70	%		1.90	%
Total expenses after fees waived and/or reimbursed and excluding dividend expenses, stock loan fees and interest expense		1.44	%(h)		1.51	%		1.59	%		1.65	%		1.65	%		1.65	%
Net investment income (loss)		(0.17	)%(h)		0.86	%		0.31	%		(0.69	)%		(0.88	)%		(0.55	)%
Supplemental Data
Net assets, end of period (000)	$	161,797		$	130,066		$	31,321		$	31,506		$	26,523		$	10,143
Portfolio turnover rate(i)		63	%		177	%		135	%		199	%		233	%		81	%

^(a)  Based on average shares outstanding.

^(b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)  Payment received from affiliates related to certain shareholder transactions.

^(d)  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

^(e)  Aggregate total return.

^(f)  Includes payment received from affiliates, which impacted the Fund’s total return. Excluding the payment from affiliates, the Fund’s total return is 4.43%.

^(g)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Period from
	10/01/19			Year Ended September 30,
	to 05/31/20			2019			2018			2017			2016			2015
Investments in underlying funds		0.16	%		0.22	%		0.20	%		0.15	%		0.16	%		0.04	%

^(h)  Annualized.

⁽ⁱ⁾  Excludes underlying investments in total return swaps.

See notes to financial statements.

26 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Event Driven Equity Fund (continued)
	Investor C
	Period from
	10/01/19			Year Ended September 30,
	to 05/31/20			2019			2018			2017			2016			2015
Net asset value, beginning of period	$	8.53		$	8.15		$	8.37		$	7.69		$	7.94		$	13.70
Net investment income (loss)(a)		(0.05	)		0.01			(0.03	)		(0.11	)		(0.12	)		(0.16	)
Net realized and unrealized gain		0.12			0.49			0.19			0.79			0.41			0.57
Net increase from investment operations		0.07			0.50			0.16			0.68			0.29			0.41
Distributions(b)
From net investment income		—			(0.00	)(c)		—			—			—			—
From net realized gain		(0.27	)		(0.12	)		(0.38	)		—			(0.58	)		(6.17	)
Total distributions		(0.27	)		(0.12	)		(0.38	)		—			(0.58	)		(6.17	)
Capital contributions — affiliated(d)		—			—			—			—			0.04			—
Net asset value, end of period	$	8.33		$	8.53		$	8.15		$	8.37		$	7.69		$	7.94
Total Return(e)
Based on net asset value		0.93	%(f)		6.30	%		2.06	%		8.84	%		4.32	%(g)		1.16	%
Ratios to Average Net Assets(h)
Total expenses		2.25	%(i)		2.30	%		2.44	%		2.64	%		2.74	%		3.61	%
Total expenses after fees waived and/or reimbursed		2.18	%(i)		2.24	%		2.37	%		2.42	%		2.43	%		2.86	%
Total expenses after fees waived and/or reimbursed and excluding dividend expense		2.18	%(i)		2.24	%		2.37	%		2.42	%		2.43	%		2.64	%
Total expenses after fees waived and/or reimbursed and excluding dividend expenses, stock loan fees and interest expense		2.17	%(i)		2.21	%		2.33	%		2.39	%		2.39	%		2.39	%
Net investment income (loss)		(0.91	)%(i)		0.15	%		(0.42	)%		(1.38	)%		(1.57	)%		(1.28	)%
Supplemental Data
Net assets, end of period (000)	$	64,196		$	44,288		$	8,316		$	6,686		$	6,112		$	6,165
Portfolio turnover rate(j)		63	%		177	%		135	%		199	%		233	%		81	%

^(a)  Based on average shares outstanding.

^(b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)  Amount is greater than $(0.005) per share.

^(d)  Payment received from affiliates related to certain shareholder transactions.

^(e)  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

^(f)  Aggregate total return.

^(g)  Includes payment received from affiliates, which impacted the Fund’s total return. Excluding the payment from affiliates, the Fund’s total return is 3.78%.

^(h)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Period from
	10/01/19			Year Ended September 30,
	to 05/31/20			2019			2018			2017			2016			2015
Investments in underlying funds		0.16	%		0.22	%		0.20	%		0.15	%		0.16	%		0.04	%

⁽ⁱ⁾  Annualized.

⁽ⁱ⁾  Excludes underlying investments in total return swaps.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 27

Notes to Financial Statements

1. ORGANIZATION

BlackRock Large Cap Series Funds, Inc. (the “Corporation”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Corporation is organized as a Maryland corporation. BlackRock Event Driven Equity Fund (the “Fund”) is a series of the Corporation, although the Fund may invest in companies with any capitalization. The Fund is classified as diversified.

The Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional Shares are sold only to certain eligible investors. Investor A and Investor C Shares bear certain expenses related to shareholder servicing of such shares, and Investor C Shares also bear certain expenses related to the distribution of such shares. Investor A and Investor C Shares are generally available through financial intermediaries. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor C shareholders may vote on material changes to the Investor A Shares distribution and service plan).

Share Class	Initial Sales Charge	CDSC			Conversion Privilege
Institutional Shares	No		No		None
Investor A Shares	Yes		No	(a)	None
Investor C Shares	No		Yes	(b)	To Investor A Shares after approximately 10 years

^(a)  Investor A Shares may be subject to a contingent deferred sales charge (“CDSC”) for certain redemptions where no initial sales charge was paid at the time of purchase.

^(b)  A CDSC of 1.00% is assessed on certain redemptions of Investor C Shares made within one year after purchase.

On November 13, 2019, the Board of Directors of the Corporation (the “Board”) approved a change in the fiscal year end of the Fund, effective as of May 31, 2020, from September 30 to May 31.

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income and non-cash dividend income, if any, are recorded on the ex-dividend date. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Fund is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities are recognized on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

The Fund does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Segregation and Collateralization: In cases where the Fund enters into certain investments (e.g., futures contracts, swaps and short sales) that would be treated as “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Distributions: Distributions paid by the Fund are recorded on the ex-dividend date. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

28 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (continued)

Other: Expenses directly related to the Fund or its classes are charged to the Fund or the applicable class. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Fund and other shared expenses prorated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.

The Fund has an arrangement with its custodian whereby credits are earned on uninvested cash balances, which could be used to reduce custody fees and/or overdraft charges. The Fund may incur charges on overdrafts, subject to certain conditions.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of trading on the NYSE that may not be reflected in the computation of the Fund’s net assets. Each business day, the Fund uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded and over-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

• Fixed-income securities for which market quotations are readily available are generally valued using the last available bid prices or current market quotations provided by independent dealers or third party pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more independent brokers or dealers as obtained from a third party pricing service. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value.

• Investments in open-end U.S. mutual funds are valued at net asset value (“NAV”) each business day.

• The Fund values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule 2a-7 under the 1940 Act.

• Futures contracts traded on exchanges are valued at their last sale price.

• Swap agreements are valued utilizing quotes received daily by the Fund’s pricing service or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

NOTESTO FINANCIAL STATEMENTS 29

Notes to Financial Statements  (continued)

For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by the Global Valuation Committee and third party pricing services utilize one or a combination of, but not limited to, the following inputs.

Standard Inputs Generally Considered By Third Party Pricing Services
Market approach	(i)  recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers; (ii) recapitalizations and other transactions across the capital structure; and (iii)   market multiples of comparable issuers.
Income approach	(i)  future cash flows discounted to present and adjusted as appropriate for liquidity, credit and/or market risks; (ii) quoted prices for similar investments or assets in active markets; and (iii)   other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates.
Cost approach	(i)  audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company; (ii) changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company; (iii)   relevant news and other public sources; and (iv)   known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”) or a hybrid of those techniques are used in allocating enterprise value of the company, as deemed appropriate under the circumstances. The use of OPM and PWERM techniques involve a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

The Private Companies are not subject to the public company disclosure, timing, and reporting standards as other investments held by the Fund. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date the Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price the Fund could receive upon the sale of the investment.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

• Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

• Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Global Valuation Committee’s assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

As of May 31, 2020, certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

Preferred Stocks: Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well), but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

Floating Rate Loan Interests: Floating rate loan interests are typically issued to companies (the “borrower”) by banks, other financial institutions, or privately and publicly offered corporations (the “lender”). Floating rate loan interests are generally non-investment grade, often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged or in bankruptcy proceedings. In addition, transactions in floating rate loan interests may settle on a delayed basis, which may result

30 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (continued)

in proceeds from the sale not being readily available for a fund to make additional investments or meet its redemption obligations. Floating rate loan interests may include fully funded term loans or revolving lines of credit. Floating rate loan interests are typically senior in the corporate capital structure of the borrower. Floating rate loan interests generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. Since the rates reset only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the NAV of a fund to the extent that it invests in floating rate loan interests. The base lending rates are generally the lending rate offered by one or more European banks, such as the London Interbank Offered Rate (“LIBOR”), the prime rate offered by one or more U.S. banks or the certificate of deposit rate. Floating rate loan interests may involve foreign borrowers, and investments may be denominated in foreign currencies. These investments are treated as investments in debt securities for purposes of a fund’s investment policies.

When a fund purchases a floating rate loan interest, it may receive a facility fee and when it sells a floating rate loan interest, it may pay a facility fee. On an ongoing basis, a fund may receive a commitment fee based on the undrawn portion of the underlying line of credit amount of a floating rate loan interest. Facility and commitment fees are typically amortized to income over the term of the loan or term of the commitment, respectively. Consent and amendment fees are recorded to income as earned. Prepayment penalty fees, which may be received by a fund upon the prepayment of a floating rate loan interest by a borrower, are recorded as realized gains. A fund may invest in multiple series or tranches of a loan. A different series or tranche may have varying terms and carry different associated risks.

Floating rate loan interests are usually freely callable at the borrower’s option. A fund may invest in such loans in the form of participations in loans (“Participations”) or assignments (“Assignments”) of all or a portion of loans from third parties. Participations typically will result in a fund having a contractual relationship only with the lender, not with the borrower. A fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the Participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing Participations, a fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, nor any rights of offset against the borrower. A fund may not benefit directly from any collateral supporting the loan in which it has purchased the Participation. As a result, a fund assumes the credit risk of both the borrower and the lender that is selling the Participation. A fund’s investment in loan participation interests involves the risk of insolvency of the financial intermediaries who are parties to the transactions. In the event of the insolvency of the lender selling the Participation, a fund may be treated as a general creditor of the lender and may not benefit from any offset between the lender and the borrower. Assignments typically result in a fund having a direct contractual relationship with the borrower, and a fund may enforce compliance by the borrower with the terms of the loan agreement.

Borrowed Bond Agreements: Repurchase agreements may be referred to as borrowed bond agreements when entered into in connection with short sales of bonds. In a borrowed bond agreement, a fund borrows a bond from a counterparty in exchange for cash collateral. The agreement contains a commitment that the security and the cash will be returned to the counterparty and a fund at a mutually agreed upon date. Certain agreements have no stated maturity and can be terminated by either party at any time. Earnings on cash collateral and compensation to the lender of the bond are based on agreed upon rates between a fund and the counterparty. The value of the underlying cash collateral approximates the market value and accrued interest of the borrowed bond. To the extent that a borrowed bond transaction exceeds one business day, the value of the cash collateral in the possession of the counterparty is monitored on a daily basis to ensure the adequacy of the collateral. As the market value of the borrowed bond changes, the cash collateral is periodically increased or decreased with a frequency and in amounts prescribed in the borrowed bond agreement. A fund may also experience delays in gaining access to the collateral.

Borrowed bond agreements are entered into by a fund under Master Repurchase Agreements (each, an “MRA”), which permit a fund, under certain circumstances, including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from a fund. With borrowed bond agreements, typically a fund and counterparty under an MRA are permitted to sell, re-pledge, or use the collateral associated with the transaction. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Pursuant to the terms of the MRA, a fund receives or posts securities and cash as collateral with a market value in excess of the repurchase price to be paid or received by a fund upon the maturity of the transaction. Upon a bankruptcy or insolvency of the MRA counterparty, a fund is considered an unsecured creditor with respect to excess collateral and, as such, the return of excess collateral may be delayed.

As of period end, the following table is a summary of the Fund’s open borrowed bond agreements by counterparty which are subject to offset under an MRA on a net basis:

Borrowed

Bonds

Exposure

Net

at Value

Due (to)/

Exposure

Borrowed

Including

from

Non-Cash

Due (to)/

Bond

Accrued

Counterparty

Collateral

from

Counterparty

Agreements(a)

Interest(b)

Before Collateral

Pledged

Counterparty(c)

Citigroup Global Markets, Inc.

$

1,410,000

$

(1,539,872

)

$

(129,872

)

$

124,178

$

(5,694

)(d)

^(a)  Included in Investments at value — unaffiliated in the Statement of Assets and Liabilities.

^(b)  Includes accrued interest on borrowed bonds in the amount of $9,872 which is included in interest expense payable in the Statement of Assets and Liabilities.

^(c)  Net exposure represents the net receivable (payable) that would be due from/to the counterparty in the event of default.

^(d)  Net receivable/payable is subject to set-off provision with net receivable/payable under the ISDA Agreement.

When a fund enters into an MRA and International Swaps and Derivatives Association, Inc. (an “ISDA”) and/or Master Securities Lending Agreements (“MSLA”) with the same counterparty, the agreements may contain a set-off provision allowing a fund to offset a net amount payable with a net amount receivable upon default of the counterparty. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events. For example, regardless of the contractual rights included in an MRA, such laws may prohibit a fund from setting off amounts owed to a defaulting counterparty under an MRA against amounts owed to a fund by affiliates of the defaulting counterparty. However, the insolvency regimes of many jurisdictions generally permit set-off of simultaneous payables and receivables with the same legal entity under certain types of financial contracts. These rules would apply upon a default of the legal entity, regardless of the existence of a contractual set-off right in those contracts.

NOTESTO FINANCIAL STATEMENTS 31

Notes to Financial Statements  (continued)

In the event the counterparty of securities under an MRA files for bankruptcy or becomes insolvent, a fund’s use of the proceeds from the agreement may be restricted while the counterparty, or its trustee or receiver, determines whether or not to enforce a fund’s obligation to repurchase the securities.

Short Sale Transactions: In short sale transactions, a fund sells a security it does not hold in anticipation of a decline in the market price of that security. When a fund makes a short sale, it will borrow the security sold short (borrowed bond) and deliver the fixed-income security to the counterparty to which it sold the security short. An amount equal to the proceeds received by a fund is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. A fund is required to repay the counterparty interest on the security sold short, which, if applicable, is included in interest expense in the Statements of Operations. A fund is exposed to market risk based on the amount, if any, that the market value of the security increases beyond the market value at which the position was sold. Thus, a short sale of a security involves the risk that instead of declining, the price of the security sold short will rise. The short sale of securities involves the possibility of an unlimited loss since there is an unlimited potential for the market price of the security sold short to increase. A gain is limited to the price at which a fund sold the security short. A realized gain or loss is recognized upon the termination of a short sale if the market price is either less than or greater than the proceeds originally received. There is no assurance that a fund will be able to close out a short position at a particular time or at an acceptable price.

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of any securities on loan, all of which were classified as common stocks in the Fund’s Schedule of Investments, and the value of any related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value — unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments.

Securities lending transactions are entered into by the Fund under MSLAs, which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the Fund’s securities lending agreements by counterparty which are subject to offset under an MSLA:

	Securities		Cash			Net
Counterparty		Loaned at Value		Collateral Received	(a)	Amount
Citigroup Global Markets, Inc.	$	3,035,387	$	(3,035,387	)	$        —
Goldman Sachs & Co		2,691,068		(2,691,068	)	—
Morgan Stanley & Co. LLC		796,662		(796,662	)	—
	$	6,523,117	$	(6,523,117	)	$        —

^(a)  Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by the Fund is disclosed in the Fund’s Statement of Assets and Liabilities.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5. DERIVATIVE FINANCIAL INSTRUMENTS

The Fund engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Fund and/or to manage its exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedule of Investments. These contracts may be transacted on an exchange or OTC.

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

32 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (continued)

Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statement of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

Swaps: Swap contracts are entered into to manage exposure to issuers, markets and securities. Such contracts are agreements between the Fund and a counterparty to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”).

For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Statement of Assets and Liabilities and amortized over the term of the contract. The daily fluctuation in market value is recorded as unrealized appreciation (depreciation) on OTC Swaps in the Statement of Assets and Liabilities. Payments received or paid are recorded in the Statements of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract, if any. Generally, the basis of the contract is the premium received or paid.

In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the Fund’s counterparty on the swap agreement becomes the CCP. The Fund is required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Amounts pledged, which are considered restricted cash, are included in cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the Statements of Operations.

• Credit default swaps — Credit default swaps are entered into to manage exposure to the market or certain sectors of the market, to reduce risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which a fund is not otherwise exposed (credit risk).

The Fund may either buy or sell (write) credit default swaps on single-name issuers (corporate or sovereign), a combination or basket of single-name issuers or traded indexes. Credit default swaps are agreements in which the protection buyer pays fixed periodic payments to the seller in consideration for a promise from the protection seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation acceleration, repudiation, moratorium or restructuring). As a buyer, if an underlying credit event occurs, the Fund will either (i) receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index, or (ii) receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. As a seller (writer), if an underlying credit event occurs, the Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.

• Total return swaps — Total return swaps are entered into to obtain exposure to a security or market without owning such security or investing directly in such market or to exchange the risk/return of one security or market (e.g., fixed-income) with another security or market (e.g., equity or commodity prices) (equity risk, commodity price risk and/or interest rate risk).

Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (distributions plus capital gains/losses) of an underlying instrument, or basket of underlying instruments, in exchange for fixed or floating rate interest payments. If the total return of the instrument(s) or index underlying the transaction exceeds or falls short of the offsetting fixed or floating interest rate obligation, the Fund receives payment from or makes a payment to the counterparty.

Certain total return swaps are designed to function as a portfolio of direct investments in long and short equity positions. This means that the Fund has the ability to trade in and out of these long and short positions within the swap and will receive the economic benefits and risks equivalent to direct investment in these positions, subject to certain adjustments due to events related to the counterparty. Benefits and risks include capital appreciation (depreciation), corporate actions and dividends received and paid, all of which are reflected in the swap’s market value. The market value also includes interest charges and credits (“financing fees”) related to the notional values of the long and short positions and cash balances within the swap. These interest charges and credits are based on a specified benchmark rate plus or minus a specified spread determined based upon the country and/or currency of the positions in the portfolio.

Positions within the swap and financing fees are reset periodically. During a reset, any unrealized appreciation (depreciation) on positions and accrued financing fees become available for cash settlement between the Fund and the counterparty. The amounts that are available for cash settlement are recorded as realized gains or losses in the Statements of Operations. Cash settlement in and out of the swap may occur at a reset date or any other date, at the discretion of the Fund and the counterparty, over the life of the agreement. Certain swaps have no stated expiration and can be terminated by either party at any time.

NOTESTO FINANCIAL STATEMENTS 33

Notes to Financial Statements  (continued)

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help it mitigate its counterparty risk, the Fund may enter into an ISDA Master Agreement or similar agreement with its counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events.

Collateral Requirements: For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty.

Cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, is reported separately in the Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Fund, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Fund. Any additional required collateral is delivered to/pledged by the Fund on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. The Fund generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Fund from its counterparties are not fully collateralized, it bears the risk of loss from counterparty non-performance. Likewise, to the extent the Fund has delivered collateral to a counterparty and stands ready to perform under the terms of its agreement with such counterparty, it bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statement of Assets and Liabilities.

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Corporation, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets:

Average Daily Net Assets Investment Advisory Fees    

First $1 billion	1.20%
$1 billion — $3 billion	1.13
$3 billion — $5 billion	1.08
$5 billion — $10 billion	1.04
Greater than $10 billion	1.02

Service and Distribution Fees: The Corporation, on behalf of the Fund, entered into a Distribution Agreement and Distribution Plans with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plans and in accordance with Rule 12b-1 under the 1940 Act, the Fund pays BRIL ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of the Fund as follows:

Share Class	Service Fees			Distribution Fees
Investor A		0.25	%		N/A
Investor C		0.25			0.75	%

BRIL and broker-dealers, pursuant to sub-agreements with BRIL, provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.

34 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (continued)

The following table shows the class specific service and distribution fees borne directly by each share class of the Fund:

	Period from		Year Ended
Share Class	10/01/19 to 05/31/20		09/30/19
Investor A	$	251,392	$    195,686
Investor C		384,725	237,815
	$	636,117	$ ��  433,501

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Fund with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the period ended May 31, 2020 and year ended September 30, 2019, the Fund paid $985,816 and $509,626, respectively, for the Fund’s Institutional Shares to affiliates of BlackRock in return for these services, which are included in transfer agent — class specific in the Statements of Operations.

The Manager maintains a call center that is responsible for providing certain shareholder services to the Fund. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. The Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statements of Operations:

	Period from		Year Ended
Share Class	10/01/19 to 05/31/20		09/30/19
Institutional	$	5,987	$        4,147
Investor A		1,651	1,073
Investor C		643	366
	$	8,281	$        5,586

The following table shows the class specific transfer agent fees borne directly by each share class of the Fund:

	Period from		Year Ended
Share Class	10/01/19 to 05/31/20		09/30/19
Institutional	$	2,797,934	$ 1,984,559
Investor A		101,840	86,909
Investor C		31,345	19,872
	$	2,931,119	$ 2,091,340

Other Fees: For the period ended May 31, 2020 and year ended September 30, 2019, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Fund’s Investor A Shares of $13,753 and $21,433, respectively.

Affiliates received CDSCs as follows:

	Period from		Year Ended
Share Class	10/01/19 to 05/31/20		09/30/19
Investor A	$	14,119	$        2,781
Investor C		18,211	3,673
	$	32,330	$        6,454

Expense Limitations, Waivers and Reimbursements: With respect to the Fund, the Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The contractual agreement may be terminated upon 90 days’ notice by a majority of the directors who are not “interested persons” of the Corporation, as defined in the 1940 Act (“Independent Directors”), or by a vote of a majority of the outstanding voting securities of the Fund. The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the period ended May 31, 2020 and year ended September 30, 2019, the amounts waived and/or reimbursed were $1,928,263 and $1,153,203, respectively.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through January 31, 2021. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the period ended May 31, 2020 and year ended September 30, 2019, there were no fees waived and/or reimbursed by the Manager pursuant to this arrangement.

The Fund incurred expenses in connection with the realignment and consolidation of the boards of directors of certain BlackRock-advised funds. The Manager has voluntarily agreed to reimburse the Fund for all or a portion of such expenses, which amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended September 30, 2019, the amount reimbursed to the Fund was $7,235.

NOTESTO FINANCIAL STATEMENTS 35

Notes to Financial Statements  (continued)

With respect to the Fund, the Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

Institutional		Investor A	Investor C
	1.38%	1.65%	2.39%

The Manager has agreed not to reduce or discontinue these contractual expense limitations through January 31, 2021, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the period ended May 31, 2020 and year ended September 30, 2019, there were no fees waived and/or reimbursed by the Manager.

For the period ended May 31, 2020 and year ended September 30, 2019, the Fund reimbursed the Manager $33,749 and $20,609, respectively, for certain accounting services, which is included in accounting services in the Statements of Operations.

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Fund. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. The Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 75% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 80% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

Prior to January 1, 2020, the Fund retained 73.5% of securities lending income (which excluded collateral investment expenses) and the amount retained could never be less than 70% of the total of securities lending income plus the collateral investment expenses. In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeded a specified threshold, the Fund would retain for the remainder of that calendar year 80% of securities lending income (which excluded collateral investment expenses), and the amount retained could never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Statements of Operations. For the period ended May 31, 2020 and year ended September 30, 2019, the Fund paid BIM $224,282 and $22,321, respectively, for securities lending agent services.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow and lend under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the period ended May 31, 2020, the Fund did not participate in the Interfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Fund are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Fund’s Chief Compliance Officer, which is included in Directors and Officer in the Statements of Operations.

7. PURCHASES AND SALES

For the period ended May 31, 2020, purchases and sales of investments, excluding short-term securities, were $451,253,076 and $220,637,636, respectively.

36 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (continued)

8. INCOME TAX INFORMATION

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for the period ended May 31, 2020 and each of the four years ended September 30, 2019. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of May 31, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAVs per share. As of period end, the following permanent difference attributable to the use of equalization was reclassified to the following accounts:

	Amounts
Paid-in capital	$	24,894,624
Accumulated earnings (loss)		(24,894,624	)

The tax character of distributions paid was as follows:

	05/31/20(a)		09/30/19(a)		09/30/18
Ordinary income	$	152,796,086	$	31,229,449	$ 10,355,118
Long-term capital gains		6,587,034		283,100	627,120
	$	159,383,120	$	31,512,549	$ 10,982,238

^(a) Distribution amounts may include a portion of the proceeds from redeemed shares.

As of period end, the tax components of accumulated net earnings were as follows:

	Amounts
Undistributed ordinary income	$	144,480,920
Undistributed long-term capital gains		14,714,008
Net unrealized losses(a)		(155,772,700	)
	$	3,422,228

^(a)  The difference between book-basis and tax-basis net unrealized gains was attributable primarily to the tax deferral of losses on wash sales and straddles, the accounting for swap agreements, the timing and recognition of partnership income and the realization for tax purposes of unrealized gains on constructive sales.

As of May 31, 2020, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amounts
Tax cost	$	4,893,941,431
Gross unrealized appreciation	$	116,346,068
Gross unrealized depreciation		(272,142,412	)
Net unrealized appreciation (depreciation)	$	(155,796,344	)

9. BANK BORROWINGS

The Corporation, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2021 unless extended or renewed. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the period ended May 31, 2020 and year ended September 30, 2019, the Fund did not borrow under the credit agreement.

10. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also

NOTESTO FINANCIAL STATEMENTS 37

Notes to Financial Statements  (continued)

be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force the Fund to reinvest in lower yielding securities. The Fund may also be exposed to reinvestment risk, which is the risk that income from the Fund’s portfolio will decline if the Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below the Fund portfolio’s current earnings rate.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.

The price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third party service providers.

An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The duration of this pandemic and its effects cannot be determined with certainty.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

The Fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain less the value of any collateral held by the Fund.

With futures and centrally cleared swaps, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

As of period end, the Fund invested a significant portion of its assets in securities in the financials sector. Changes in economic conditions affecting such sector would have a greater impact on the Fund and could affect the value, income and/or liquidity of positions in such securities.

38 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (continued)

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Period from
	10/01/19 to 05/31/20						Year Ended 09/30/19						Year Ended 09/30/18
Share Class	Shares			Amounts			Shares			Amounts			Shares			Amounts
Institutional
Shares sold		304,112,457		$	2,947,159,774			290,800,810		$	2,795,254,199			81,169,298		$	746,245,154
Shares issued in reinvestment of distributions		10,386,347			100,539,839			1,492,940			13,869,414			990,341			8,932,873
Shares redeemed		(138,586,900	)		(1,307,266,555	)		(59,365,590	)		(571,048,852	)		(13,674,463	)		(126,546,800	)
		175,911,904		$	1,740,433,058			232,928,160		$	2,238,074,761			68,485,176		$	628,631,227
Investor A
Shares sold and automatic conversion of shares		8,846,594		$	82,575,134			12,692,072		$	117,047,639			2,456,882		$	21,769,106
Shares issued in reinvestment of distributions		492,339			4,573,826			82,359			735,463			167,023			1,451,431
Shares redeemed		(5,663,652	)		(51,791,829	)		(2,530,791	)		(23,367,829	)		(2,571,181	)		(22,669,604	)
		3,675,281		$	35,357,131			10,243,640		$	94,415,273			52,724		$	550,933
Investor C
Shares sold		3,173,078		$	26,709,754			4,496,605		$	37,472,780			367,721		$	2,942,319
Shares issued in reinvestment of distributions		213,421			1,779,931			21,698			175,103			37,684			297,325
Shares redeemed and automatic conversion of shares		(869,500	)		(7,121,093	)		(344,513	)		(2,879,185	)		(184,088	)		(1,485,017	)
		2,516,999		$	21,368,592			4,173,790		$	34,768,698			221,317		$	1,754,627
		182,104,184		$	1,797,158,781			247,345,590		$	2,367,258,732			68,759,217		$	630,936,787

12. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

NOTESTO FINANCIAL STATEMENTS 39

Report of Independent Registered Public Accounting Firm

To the Shareholders of BlackRock Event Driven Equity Fund and the Board of Directors of BlackRock Large Cap Series Funds, Inc.:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of BlackRock Event Driven Equity Fund of BlackRock Large Cap Series Funds, Inc. (the “Fund”), including the schedule of investments, as of May 31, 2020, the related statements of operations for the period from October 1, 2019 through May 31, 2020 and for the year ended September 30, 2019, the statements of changes in net assets for the period from October 1, 2019 through May 31, 2020 and for each of the two years in the period ended September 30, 2019, the financial highlights for the period from October 1, 2019 through May 31, 2020 and for each of the five years in the period ended September 30, 2019, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of May 31, 2020, and the results of its operations for the period from October 1, 2019 through May 31, 2020 and for the year ended September 30, 2019, the changes in its net assets for the period from October 1, 2019 through May 31, 2020 and for each of the two years in the period ended September 30, 2019, and the financial highlights for the period from October 1, 2019 through May 31, 2020 and each of the five years in the period ended September 30, 2019, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of May 31, 2020, by correspondence with the custodian, agent banks, and brokers; when replies were not received from agent banks or brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

Deloitte & Touche LLP

Boston, Massachusetts

July 22, 2020

We have served as the auditor of one or more BlackRock investment companies since 1992.

40 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Important Tax Information  (unaudited)

For corporate shareholders, the percentage of ordinary income distributions paid during the period ended May 31, 2020 that qualified for the dividends-received deduction were as follows:

	Dividends-Received
Fund Name	Deduction
BlackRock Event Driven Equity Fund		0.65	%

The following maximum amounts are hereby designated as qualified dividend income for individuals for the period ended May 31, 2020:

	Qualified Dividend
Fund Name	Income
BlackRock Event Driven Equity Fund	$	2,648,581

For the period ended May 31, 2020, the Fund hereby designates the following maximum amounts allowable as interest-related dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations:

	Interest-Related
Fund Name	Dividends
BlackRock Event Driven Equity Fund	$	152,796,086

The law varies in each state as to whether and what percent of ordinary income dividends attribute to federal obligations is exempt from state income tax. Shareholders are advised to check with their tax advisers to determine if any portion of the dividends received is exempt from state income tax.

The following distribution amounts are hereby designated for the period ended May 31, 2020:

			20% Rate
	Short-Term		Long-Term
	Capital Gain		Capital Gain
Fund Name	Dividends		Dividends
BlackRock Event Driven Equity Fund	$	152,796,086	$	6,587,034

IMPORTANT TAX INFORMATION 41

Disclosure of Investment Advisory Agreement

The Board of Directors (the “Board,” the members of which are referred to as “Board Members”) of BlackRock Large Cap Series Funds, Inc. (the “Company”) met on April 7, 2020 (the “April Meeting”) and May 11-13, 2020 (the “May Meeting”) to consider the approval of the investment advisory agreement (the “Agreement”) between the Company, on behalf of BlackRock Event Driven Equity Fund (the “Fund”), and BlackRock Advisors, LLC (the “Manager” or “BlackRock”), the Fund’s investment advisor.

Activities and Composition of the Board

On the date of the May Meeting, the Board consisted of fourteen individuals, twelve of whom were not “interested persons” of the Company as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of the Company and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Chair of the Board is an Independent Board Member. The Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Ad Hoc Topics Committee, each of which is chaired by an Independent Board Member and composed of Independent Board Members (except for the Ad Hoc Topics Committee, which also has one interested Board Member).

The Agreement

Consistent with the requirements of the 1940 Act, the Board considers the continuation of the Agreement on an annual basis. The Board has four quarterly meetings per year, each typically extending for two days, and additional in-person and telephonic meetings throughout the year, as needed. While the Board also has a fifth one-day meeting to consider specific information surrounding the renewal of the Agreement, the Board’s consideration entails a year-long deliberative process whereby the Board and its committees assess BlackRock’s services to the Fund. In particular, the Board assessed, among other things, the nature, extent and quality of the services provided to the Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management services; accounting oversight, administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; and legal, regulatory and compliance services. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of BlackRock’s management.

During the year, the Board, acting directly and through its committees, considers information that is relevant to its annual consideration of the renewal of the Agreement, including the services and support provided by BlackRock to the Fund and its shareholders. BlackRock also furnished additional information to the Board in response to specific questions from the Board. This additional information is discussed further in the section titled “Board Considerations in Approving the Agreement.” Among the matters the Board considered were: (a) investment performance for one-year, three-year, five-year, and/or since inception periods, as applicable, against peer funds, an applicable benchmark, and other performance metrics, as applicable, as well as BlackRock senior management’s and portfolio managers’ analyses of the reasons for any outperformance or underperformance relative to its peers, benchmarks, and other performance metrics, as applicable; (b) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by the Fund for services; (c) Fund operating expenses and how BlackRock allocates expenses to the Fund; (d) the resources devoted to risk oversight of, and compliance reports relating to, implementation of the Fund’s investment objective, policies and restrictions, and meeting regulatory requirements; (e) BlackRock’s and the Fund’s adherence to applicable compliance policies and procedures; (f) the nature, character and scope of non-investment management services provided by BlackRock and its affiliates and the estimated cost of such services; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Board; (i) the use of brokerage commissions and execution quality of portfolio transactions; (j) BlackRock’s implementation of the Fund’s valuation and liquidity procedures; (k) an analysis of management fees for products with similar investment mandates across the open-end fund, exchange-traded fund (“ETF”), closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to the Fund; (l) BlackRock’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage; and (m) periodic updates on BlackRock’s business.

Board Considerations in Approving the Agreement

The Approval Process: Prior to the April Meeting, the Board requested and received materials specifically relating to the Agreement. The Independent Board Members are continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to the Board to better assist its deliberations. The materials provided in connection with the April Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on either a Lipper classification or Morningstar category, regarding the Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”) and the investment performance of the Fund as compared with a peer group of funds (“Performance Peers”); (b) information on the composition of the Expense Peers and Performance Peers and a description of Broadridge’s methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to the Agreement and a discussion of fall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional accounts, sub-advised mutual funds, ETFs, closed-end funds, open-end funds, and separately managed accounts under similar investment mandates, as well as the performance of such other products, as applicable; (e) a review of non-management fees; (f) the existence, impact and sharing of potential economies of scale, if any, with the Fund; (g) a summary of aggregate amounts paid by the Fund to BlackRock; (h) sales and redemption data regarding the Fund’s shares; and (i) various additional information requested by the Board as appropriate regarding BlackRock’s and the Fund’s operations.

At the April Meeting, the Board reviewed materials relating to its consideration of the Agreement. As a result of the discussions that occurred during the April Meeting, and as a culmination of the Board’s year-long deliberative process, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these questions and requests with additional written information in advance of the May Meeting.

At the May Meeting, the Board concluded its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of the Fund as compared to its Performance Peers and to other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated

42 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Disclosure of Investment Advisory Agreement  (continued)

profits realized by BlackRock and its affiliates from their relationship with the Fund; (d) the Fund’s fees and expenses compared to its Expense Peers; (e) the existence and sharing of potential economies of scale; (f) any fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with the Fund; and (g) other factors deemed relevant by the Board Members.

The Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRock’s services related to the valuation and pricing of Fund portfolio holdings. The Board noted the willingness of BlackRock’s personnel to engage in open, candid discussions with the Board. The Board did not identify any particular information as determinative, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock: The Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services, and the resulting performance of the Fund. Throughout the year, the Board compared Fund performance to the performance of a comparable group of mutual funds, relevant benchmark, and performance metrics, as applicable. The Board met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. The Board also reviewed the materials provided by the Fund’s portfolio management team discussing the Fund’s performance, investment strategies and outlook.

The Board considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and the Fund’s portfolio management team; research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. The Board engaged in a review of BlackRock’s compensation structure with respect to the Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, the Board considered the nature and quality of the administrative and other non-investment advisory services provided to the Fund. BlackRock and its affiliates provide the Fund with certain administrative, shareholder and other services (in addition to any such services provided to the Fund by third-parties) and officers and other personnel as are necessary for the operations of the Fund. In particular, BlackRock and its affiliates provide the Fund with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus, the summary prospectus (as applicable), the statement of additional information and periodic shareholder reports; (ii) oversight of daily accounting and pricing; (iii) responsibility for periodic filings with regulators; (iv) overseeing and coordinating the activities of third-party service providers including, among others, the Fund’s custodian, fund accountant, transfer agent, and auditor; (v) organizing Board meetings and preparing the materials for such Board meetings; (vi) providing legal and compliance support; (vii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain open-end funds; and (viii) performing or managing administrative functions necessary for the operation of the Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing the Fund’s distribution partners, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal & compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Fund and BlackRock: The Board, including the Independent Board Members, also reviewed and considered the performance history of the Fund. In preparation for the April Meeting, the Board was provided with reports independently prepared by Broadridge, which included an analysis of the Fund’s performance as of December 31, 2019, as compared to its Performance Peers. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, the Board received and reviewed information regarding the investment performance of the Fund as compared to its Performance Peers and, in light of the Fund’s outcome-oriented investment objective, certain performance metrics (“Outcome Oriented Performance Metrics”). The Board and its Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of the Fund throughout the year.

In evaluating performance, the Board focused particular attention on funds with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including in particular, that notable differences may exist between a fund and its Performance Peers (for example, the investment objective and strategies). Further, the Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Board also acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could have the ability to disproportionately affect long-term performance.

The Board reviewed and considered the Fund’s performance relative to the Fund’s Outcome-Oriented Performance Metrics including a total return target. The Board noted that for the one-year, three-year and since-inception periods reported, the Fund outperformed, outperformed, and underperformed, respectively, its total return target. The Board noted that BlackRock believes that the Outcome-Oriented Performance Metrics are an appropriate performance metric for the Fund, and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed the Fund’s underperformance relative to its total return target during the applicable period.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with the Fund: The Board, including the Independent Board Members, reviewed the Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared the Fund’s total expense ratio, as well as its actual management fee rate, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, including any 12b-1 or non-12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers, and the actual management fee rate gives effect to any management fee reimbursements or waivers. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

The Board received and reviewed statements relating to BlackRock’s financial condition. The Board reviewed BlackRock’s profitability methodology and was also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to the Fund. The Board reviewed BlackRock’s estimated profitability with respect to the Fund and other funds the Board currently oversees for the year ended December 31, 2019 compared to available aggregate estimated profitability data provided for the prior two years. The Board reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes

DISCLOSUREOF INVESTMENT ADVISORY AGREEMENT 43

Disclosure of Investment Advisory Agreement  (continued)

managed by BlackRock and/or its affiliates. The Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by BlackRock, the types of funds managed, precision of expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at the individual fund level is difficult.

The Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available. The Board reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly-traded asset management firms. The Board considered the differences between BlackRock and these other firms, including the contribution of technology at BlackRock, BlackRock’s expense management, and the relative product mix.

The Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreement and to continue to provide the high quality of services that is expected by the Board. The Board further considered factors including but not limited to BlackRock’s commitment of time, assumption of risk, and liability profile in servicing the Fund, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, ETF, closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable.

The Board noted that the Fund’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio each ranked in the second quartile relative to the Fund’s Expense Peers. The Board also noted that the Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the Fund increases above certain contractually specified levels. The Board noted that if the size of the Fund were to decrease, the Fund could lose the benefit of one or more breakpoints. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on a class-by-class basis.

D. Economies of Scale: The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of the Fund increase, including the existence of fee waivers and/or expense caps, as applicable, noting that any contractual fee waivers and contractual expense caps had been approved by the Board. In its consideration, the Board further considered the continuation and/or implementation of fee waivers and/or expense caps, as applicable. The Board also considered the extent to which the Fund benefits from such economies of scale in a variety of ways and whether there should be changes in the advisory fee rate or breakpoint structure in order to enable the Fund to more fully participate in these economies of scale. The Board considered the Fund’s asset levels and whether the current fee schedule was appropriate.

E. Other Factors Deemed Relevant by the Board Members: The Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with the Fund, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and its risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Fund, including for administrative, distribution, securities lending and cash management services. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that, subject to applicable law, BlackRock may use and benefit from third-party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

In connection with its consideration of the Agreement, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Board noted the competitive nature of the open-end fund marketplace, and that shareholders are able to redeem their Fund shares if they believe that the Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund

Conclusion

The Board, including the Independent Board Members, unanimously approved the continuation of the Agreement between the Manager and the Company, on behalf of the Fund, for a one-year term ending June 30, 2021. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreement were fair and reasonable and in the best interest of the Fund and its shareholders. In arriving at its decision to approve the Agreement, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.

44 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Director and Officer Information

Independent Directors(a)
Name Year of Birth(b)	Position(s) Held (Length of Service)(c)	Principal Occupation(s) During Past Five Years	Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships Held During Past Five Years
Mark Stalnecker 1951	Chair of the Board (Since 2019) and Director (Since 2015)	Chief Investment Officer, University of Delaware from 1999 to 2013; Trustee and Chair of the Finance and Investment Committees, Winterthur Museum and Country Estate from 2005 to 2016; Member of the Investment Committee, Delaware Public Employees’ Retirement System since 2002; Member of the Investment Committee, Christiana Care Health System from 2009 to 2017; Member of the Investment Committee, Delaware Community Foundation from 2013 to 2014; Director and Chair of the Audit Committee, SEI Private Trust Co. from 2001 to 2014.	36 RICs consisting of 153 Portfolios	None
Bruce R. Bond 1946	Director (Since 2019)	Board Member, Amsphere Limited (software) since 2018; Trustee and Member of the Governance Committee, State Street Research Mutual Funds from 1997 to 2005; Board Member of Governance, Audit and Finance Committee, Avaya Inc. (computer equipment) from 2003 to 2007.	36 RICs consisting of 153 Portfolios	None
Susan J. Carter 1956	Director (Since 2016)	Director, Pacific Pension Institute from 2014 to 2018; Advisory Board Member, Center for Private Equity and Entrepreneurship at Tuck School of Business since 1997; Senior Advisor, Commonfund Capital, Inc. (“CCI”) (investment adviser) in 2015; Chief Executive Officer, CCI from 2013 to 2014; President & Chief Executive Officer, CCI from 1997 to 2013; Advisory Board Member, Girls Who Invest from 2015 to 2018 and Board Member thereof since 2018; Advisory Board Member, Bridges Fund Management since 2016; Trustee, Financial Accounting Foundation since 2017; Practitioner Advisory Board Member, Private Capital Research Institute (“PCRI”) since 2017; Lecturer in the Practice of Management, Yale School of Management since 2019.	36 RICs consisting of 153 Portfolios	None
Collette Chilton 1958	Director (Since 2015)	Chief Investment Officer, Williams College since 2006; Chief Investment Officer, Lucent Asset Management Corporation from 1998 to 2006.	36 RICs consisting of 153 Portfolios	None
Neil A. Cotty 1954	Director (Since 2016)	Bank of America Corporation from 1996 to 2015, serving in various senior finance leadership roles, including Chief Accounting Officer from 2009 to 2015, Chief Financial Officer of Global Banking, Markets and Wealth Management from 2008 to 2009, Chief Accounting Officer from 2004 to 2008, Chief Financial Officer of Consumer Bank from 2003 to 2004, Chief Financial Officer of Global Corporate Investment Bank from 1999 to 2002.	36 RICs consisting of 153 Portfolios	None
Lena G. Goldberg 1949	Director (Since 2019)	Senior Lecturer, Harvard Business School, since 2008; Director, Charles Stark Draper Laboratory, Inc. since 2013; FMR LLC/Fidelity Investments (financial services) from 1996 to 2008, serving in various senior roles including Executive Vice President — Strategic Corporate Initiatives and Executive Vice President and General Counsel; Partner, Sullivan & Worcester LLP from 1985 to 1996 and Associate thereof from 1979 to 1985.	36 RICs consisting of 153 Portfolios	None
Henry R. Keizer 1956	Director (Since 2019)	Director, Park Indemnity Ltd. (captive insurer) since 2010; Director, MUFG Americas Holdings Corporation and MUFG Union Bank, N.A. (financial and bank holding company) from 2014 to 2016; Director, American Institute of Certified Public Accountants from 2009 to 2011; Director, KPMG LLP (audit, tax and advisory services) from 2004 to 2005 and 2010 to 2012; Director, KPMG International in 2012, Deputy Chairman and Chief Operating Officer thereof from 2010 to 2012 and U.S. Vice Chairman of Audit thereof from 2005 to 2010; Global Head of Audit, KPMGI (consortium of KPMG firms) from 2006 to 2010; Director, YMCA of Greater New York from 2006 to 2010.	36 RICs consisting of 153 Portfolios	Hertz Global Holdings (car rental); Montpelier Re Holdings, Ltd. (publicly held property and casualty reinsurance) from 2013 until 2015; WABCO (commercial vehicle safety systems); Sealed Air Corp. (packaging)
Cynthia A. Montgomery 1952	Director (Since 2007)	Professor, Harvard Business School since 1989.	36 RICs consisting of 153 Portfolios	Newell Rubbermaid, Inc. (manufacturing)

DIRECTORAND OFFICER INFORMATION 45

Director and Officer Information  (continued)

Independent Directors(a)
Name Year of Birth(b)	Position(s) Held (Length of Service)(c)	Principal Occupation(s) During Past Five Years	Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships Held During Past Five Years
Donald C. Opatrny 1952	Director (Since 2019)	Trustee, Vice Chair, Member of the Executive Committee and Chair of the Investment Committee, Cornell University since 2004; President, Trustee and Member of the Investment Committee, The Aldrich Contemporary Art Museum from 2007 to 2014; Member of the Board and Investment Committee, University School from 2007 to 2018; Member of the Investment Committee, Mellon Foundation from 2009 to 2015; Trustee, Artstor (a Mellon Foundation affiliate) from 2010 to 2015; President and Trustee, the Center for the Arts, Jackson Hole from 2011 to 2018; Director, Athena Capital Advisors LLC (investment management firm) since 2013; Trustee and Chair of the Investment Committee, Community Foundation of Jackson Hole since 2014; Member of Affordable Housing Supply Board of Jackson, Wyoming since 2018; Member, Investment Funds Committee, State of Wyoming since 2017; Trustee, Phoenix Art Museum since 2018; Trustee, Arizona Community Foundation and Member of Investment Committee since 2020.	36 RICs consisting of 153 Portfolios	None
Joseph P. Platt 1947	Director (Since 2007)	General Partner, Thorn Partners, LP (private investments) since 1998; Director, WQED Multi-Media (public broadcasting not-for-profit) since 2001; Chair, Basic Health International (non-profit) since 2015.	36 RICs consisting of 153 Portfolios	Greenlight Capital Re, Ltd. (reinsurance company); Consol Energy Inc.
Kenneth L. Urish 1951	Director (Since 2007)	Managing Partner, Urish Popeck & Co., LLC (certified public accountants and consultants) since 1976; Past-Chairman of the Professional Ethics Committee of the Pennsylvania Institute of Certified Public Accountants and Committee Member thereof since 2007; Member of External Advisory Board, The Pennsylvania State University Accounting Department since founding in 2001; Principal, UP Strategic Wealth Investment Advisors, LLC since 2013; Trustee, The Holy Family Institute from 2001 to 2010; President and Trustee, Pittsburgh Catholic Publishing Associates from 2003 to 2008; Director, Inter-Tel from 2006 to 2007.	36 RICs consisting of 153 Portfolios	None
Claire A. Walton 1957	Director (Since 2016)	Chief Operating Officer and Chief Financial Officer of Liberty Square Asset Management, LP from 1998 to 2015; General Partner of Neon Liberty Capital Management, LLC since 2003; Director, Boston Hedge Fund Group from 2009 to 2018; Director, Woodstock Ski Runners since 2013; Director, Massachusetts Council on Economic Education from 2013 to 2015.	36 RICs consisting of 153 Portfolios	None

46 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Director and Officer Information  (continued)

Interested Directors(a)(d)
Name Year of Birth(b)	Position(s) Held (Length of Service)(c)	Principal Occupation(s) During Past Five Years	Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships Held During Past Five Years
Robert Fairbairn 1965	Director (Since 2018)	Vice Chairman of BlackRock, Inc. since 2019; Member of BlackRock’s Global Executive and Global Operating Committees; Co-Chair of BlackRock’s Human Capital Committee; Senior Managing Director of BlackRock, Inc. from 2010 to 2019; oversaw BlackRock’s Strategic Partner Program and Strategic Product Management Group from 2012 to 2019; Member of the Board of Managers of BlackRock Investments, LLC from 2011 to 2018; Global Head of BlackRock’s Retail and iShares® businesses from 2012 to 2016.	123 RICs consisting of 264 Portfolios	None
John M. Perlowski 1964(e)	Director (since 2015), President and Chief Executive Officer (Since 2010)	Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Accounting and Product Services since 2009; Advisory Director of Family Resource Network (charitable foundation) since 2009.	124 RICs consisting of 265 Portfolios	None
(a) The address of each Director is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055. (b) Independent Directors serve until their resignation, retirement, removal or death, or until December 31 of the year in which they turn 75. The Board may determine to extend the terms of Independent Directors on a case-by-case basis, as appropriate. (c) Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. Furthermore, effective January 1, 2019, three BlackRock Fund Complexes were realigned and consolidated into two BlackRock Fund Complexes. As a result, although the chart shows the year that each Independent Director joined the Board, certain Independent Directors first became members of the boards of other BlackRock-advised Funds, legacy MLIM funds or legacy BlackRock funds as follows: Bruce R. Bond, 2005; Cynthia A. Montgomery, 1994; Joseph P. Platt, 1999; Kenneth L. Urish, 1999; Lena G. Goldberg, 2016; Henry R. Keizer, 2016; Donald C. Opatrny, 2015. (d) Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the 1940 Act, of the Corporation based on their positions with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Fixed-Income Complex. (e) Mr. Perlowski is also a trustee of the BlackRock Credit Strategies Fund.

DIRECTORAND OFFICER INFORMATION 47

Director and Officer Information  (continued)

Officers Who Are Not Directors(a)
Name Year of Birth(b)	Position(s) Held (Length of Service)	Principal Occupation(s) During Past Five Years
Jennifer McGovern 1977	Vice President (Since 2014)	Managing Director of BlackRock, Inc. since 2016; Director of BlackRock, Inc. from 2011 to 2015; Head of Americas Product Development and Governance for BlackRock’s Global Product Group since 2019; Head of Product Structure and Oversight for BlackRock’s U.S. Wealth Advisory Group from 2013 to 2019.
Neal J. Andrews 1966	Chief Financial Officer (Since 2007)	Chief Financial Officer of the iShares® exchange traded funds from 2019 to 2020; Managing Director of BlackRock, Inc. since 2006.
Jay M. Fife 1970	Treasurer (Since 2007)	Managing Director of BlackRock, Inc. since 2007.
Charles Park 1967	Chief Compliance Officer (Since 2014)	Anti-Money Laundering Compliance Officer for certain BlackRock-advised Funds from 2014 to 2015; Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex since 2014; Principal of and Chief Compliance Officer for iShares® Delaware Trust Sponsor LLC since 2012 and BlackRock Fund Advisors (“BFA”) since 2006; Chief Compliance Officer for the BFA-advised iShares® exchange traded funds since 2006; Chief Compliance Officer for BlackRock Asset Management International Inc. since 2012.
Lisa Belle 1968	Anti-Money Laundering Compliance Officer (Since 2019)	Managing Director of BlackRock, Inc. since 2019; Global Financial Crime Head for Asset and Wealth Management of JP Morgan from 2013 to 2019; Managing Director of RBS Securities from 2012 to 2013; Head of Financial Crimes for Barclays Wealth Americas from 2010 to 2012.
Janey Ahn 1975	Secretary (Since 2019)	Managing Director of BlackRock, Inc. since 2018; Director of BlackRock, Inc. from 2009 to 2017.
(a) The address of each Officer is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055. (b) Officers of the Corporation serve at the pleasure of the Board.

Further information about the Corporation’s Directors and Officers is available in the Corporation’s Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762.

Effective December 31, 2019, Robert M. Hernandez retired as Director of the Corporation.

Investment Adviser

BlackRock Advisors, LLC

Wilmington, DE 19809

Accounting Agent and Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Custodian

Brown Brothers Harriman & Co.

Boston, MA 02109

Distributor

BlackRock Investments, LLC

New York, NY 10022

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Legal Counsel

Sidley Austin LLP

New York, NY 10019

Address of the Corporation

100 Bellevue Parkway

Wilmington, DE 19809

48 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Additional Information

General Information

Householding

The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT are available on the SEC’s website at sec.gov.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 441-7762; (2) at blackrock.com; and (3) on the SEC’s website at sec.gov.

Availability of Proxy Voting Record

Information about how the Fund voted proxies relating to securities held in the Fund’s portfolio during the most recent 12-month period ended June 30 is available upon request and without charge (1) at blackrock.com; or by calling (800) 441-7762 and (2) on the SEC’s website at sec.gov.

BlackRock’s Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed-income and tax-exempt investing. Visit blackrock.com for more information.

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM ET on any business day to get information about your account balances, recent transactions and share prices. You can also visit blackrock.com for more information.

Automatic Investment Plans

Investor class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

ADDITIONAL INFORMATION 49

Additional Information  (continued)

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

50 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

Glossary of Terms Used in this Report

Currency Abbreviation
CAD	Canadian Dollar
EUR	Euro
GBP	British Pound
USD	United States Dollar
Portfolio Abbreviation
CVR	Contingent Value Rights
ETF	Exchange-Traded Fund
FKA	Formally Known As
LIBOR	London Interbank Offered Rate
S&P	Standard & Poor’s
SPDR	Standard & Poor’s Depository Receipt

GLOSSARYOF TERMS USEDINTHIS REPORT 51

Want to know more?

blackrock.com    |    800-441-7762

This report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless preceded or accompanied by the Fund’s current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.

EDE-5/20-AR

Item 2 – Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-441-7762.

Item 3 – Audit Committee Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

Neil A. Cotty

Henry R. Keizer

Kenneth L. Urish

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

Item 4 – Principal Accountant Fees and Services

The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:

	(a) Audit Fees		(b) Audit-Related Fees1		(c) Tax Fees2		(d) All Other Fees
Entity Name	Current Fiscal Year End3	Previous Fiscal Year End	Current Fiscal Year End3	Previous Fiscal Year End	Current Fiscal Year End3	Previous Fiscal Year End	Current Fiscal Year End3	Previous Fiscal Year End
BlackRock Event Driven Equity Fund	$40,800	$40,800	$0	$0	$20,000	$14,300	$0	$0

The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (the “Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):

	Current Fiscal Year End3	Previous Fiscal Year End
(b) Audit-Related Fees1	$0	$0
(c) Tax Fees2	$0	$0
(d) All Other Fees4	$1,984,000	$2,050,500

2

¹ The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.

² The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.

³The registrant changed its fiscal year end from September 30 to May 31 effective May 31, 2020 whereby this fiscal year consists of the eight months ended May 31, 2020

⁴ Non-audit fees of $1,984,000 and $2,050,500 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription. These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) The aggregate non-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:

Entity Name	Current Fiscal Year End1	Previous Fiscal Year End
BlackRock Event Driven Equity Fund	$20,000	$14,300

¹The registrant changed its fiscal year end from September 30 to May 31 effective May 31, 2020 whereby this fiscal year consists of the eight months ended May 31, 2020.

3

Additionally, the amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored and advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:

Current Fiscal Year End 1	Previous Fiscal Year End
$1,984,000	$2,050,500

¹The registrant changed its fiscal year end from September 30 to May 31 effective May 31, 2020 whereby this fiscal year consists of the eight months ended May 31, 2020.

These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and the Affiliated Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5 – Audit Committee of Listed Registrant – Not Applicable

Item 6 – Investments (a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

Item 10 – Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

Item 11 – Controls and Procedures

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

4

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 – Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable

Item 13 – Exhibits attached hereto

(a)(2) – Section 302 Certifications are attached

(a)(3) – Not Applicable

(a)(4) – Not Applicable

(b) – Section 906 Certifications are attached

5

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock Large Cap Series Funds, Inc.

By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of BlackRock Large Cap Series Funds, Inc.

Date: August 4, 2020

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of BlackRock Large Cap Series Funds, Inc.

Date: August 4, 2020

By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of BlackRock Large Cap Series Funds, Inc.

Date: August 4, 2020

6