BLK - Earnings call transcript Q4 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Jennifer, and I will be your conference facilitator today. At this time, I'd like to welcome everyone to the BlackRock, Inc. Fourth Quarter 2024 Earnings Teleconference.

Our host for today's call will be Chairman and Chief Executive Officer, Laurence D. Martin Officer; Financial Chief S. Fink; S. Small; President, Robert Kapito; and Counsel, Christopher General J. Mr. Instructions] Meade. [Operator may Meade, your conference. you begin

Christopher Meade

everyone. morning, BlackRock. of Meade, Good Chris I'm the General Counsel

we BlackRock's we statements. to course Before call from your of like these that the We may, I'd the fact of to during differ that forward-looking remind statements. of results make may you call, attention a actual number this begin, course,

with the the factors As of SEC, undertake lists and statements. filed you forward-looking know, materially the cause BlackRock does any some say assumes differ that to reports may we today. results has BlackRock of not what no update which from to BlackRock duty

to with I'll it So that, over Martin. turn

Martin Small

results and full New It's Good for to morning, fourth Chris. Thanks, quarter year Happy and to XXXX. Year everyone. the present my pleasure

over it Larry, to results. our I'll business and financial turn I Before performance review

sentiment year creation all for in both to needs, financial about on against billion forward clients. record technology Our and half. how been flows and the X expansion, leap actions entrusted XXXX, assets our earnings back-to-back industry-leading client was future organic growth saw quantum has a powered breakthrough rooted of of and management and in technology improving. BlackRock inflows spoken in quarters an results. inorganic our marked organic objectives and long-term capability BlackRock programmatic, invigoration value and asset I'll the primarily partnerships. in record our client With by overall investment of services second We've as-adjusted net momentum GAAP release We over for $XXX executed a milestone scale. BlackRock, be offerings new focusing XXXX and year investment discloses as-adjusted XXXX net results.

XXX digits. per grew points income growth in share basis to AUM profitable operating We nearly of delivering X growth, and generated double high highest our annualized the enter fee revenue, annual in $XX.X disciplined expansion XXXX having fourth strength, margin our years. investments Our trillion. X% as for a made organic grew position each new of base quarter, We of a from earnings

activity client the believe lift growth organic revenue GIP, and Preqin. saw they're record we Our accelerating will in and come independent HPS XXXX, the from of that we

fixed foundations clients businesses, on growth the growth growth objectives. our ETFs, to through-the-cycle they're didn't to rise income, serve X% strong our organic and achieve fee Aladdin, above structural outsourcing, We base deliver need M&A target. and Our organic

income basis Our new expansions on our clients deeply more are about effective XXXX having rate and by fee X.X exceed operating record our high-growth serving goals. We trajectory, segments a can enter in increased with and that AUM X% point.

Over the the we'll have and integrating and growth adding embraced our be GIP, course earnings XXXX, power of HPS of and Preqin. Clients high strategy.

acquisitions successful and of record with clients deeper integrations into relationships BlackRock. is track Our bringing

above with target or of XXXX finished at growth. quarters sequential We organic

across is long More across are of importantly, more a and wealth consolidate the institutional, They to that regions. for technology partner technology. BlackRock and that across that broad-based and dynamic a category data, private public built one. management of in underpinned management We've markets private asset and and markets. fintech growth their seamlessly with with that them now is by public and want that's risk are portfolios integrated integrated that's across and organic want term. truly platform are a Clients portfolios unique

clients, portfolio $XXX in to solutions #X or client in private our for is provider A XX% the revenues. BlackRock by and markets and expected flows our about and is trillion Aladdin eFront across the markets powering of XXXX billion and and income whole and be over houses companies, for over a models, $X indexing and exposures. billion technology assets, billion ETF management whole the with with managers, billion portfolio $XXX past public $XXX assets, leading cash proven insurance and a ecosystem franchise SMAs revenues. direct managed $XXX of X billion revenues world's in in over breadth AUM, services of $X top alternatives private platform active across fixed Preqin. October in billion for platform our of HPS, $X.X planned this With Aladdin of acquisition close and advisory index, planned transaction acquisition GIP BlackRock's wealth

needs a an and XX% in XX% revenue. over and and expected base HPS of our ecosystem pro with up On revenue markets we overall in are make long-dated, over forma feel private That's services. and market-sensitive BlackRock's basis Preqin, for of technology wins to client less products results

areas growth, $XX.XX million the $XX.X clients. year by up fees. XX%, included and a greater billion expansion. In billion was share performance generated a share earnings of lower Quarterly The share fourth also operating income with partially translate total higher of XX% base quarter. higher X% EPS the record quarter offset shares of this We impact higher year of through strong lower to more and higher was total ago. in of up XX% a transaction. Nonoperating secular investment through the in income debt resilience higher inflows the AUM $X.X continues billion the interest the in losses, Fourth was towards offering of year higher with Our markets issued at quarter net billion and co-investment per raised Operating of in valuations. Lower the of reflected reflected X% the quarter the count will cash of market current per and delivery earnings $X.X of organic of which count versus income tax $XXX $X.X base We billion XXXX, million BlackRock closing delivered to X.X and Full up average primarily the organic XXXX. due of included higher share rate was in increased nonoperating $XXX was believe on evolve XX%. while by income GIP closing revenue and a net XX% results driven for $X quarter net revenue delivered cycles multiple XX% annualized our changes growth. fee to was current finished March year-over-year. of the fee GIP transaction, growth organic at and growth. higher mix durable $XX.XX, and billion inflows year-over-year,

Our benefited discrete rate quarter positive base the for and fee of of on may lending or is items. currently as-adjusted projected tax from fees tax average fees rate that in million XXXX. discrete The AUM, and We effective base XX% $XXX of market estimate rate XX% tax nonrecurring billion potential for up run items Fourth $X.X approximately XX% fourth changes the was differ and because reasonable tax a GIP. quarter XX% approximately up from securities revenue or actual of by was and sequentially, impact beta driven base growth organic year-over-year legislation.

with effective of HPS successful strategies and market we reflecting rate quarter's in private by rate would base private organic is X.X average higher to markets closing fee Our third the and basis was GIP as expect assets higher and growth to This point clients. fee this evidenced of positive fee the the infrastructure closing. compared quarter. revenue, Over the annualized acquisition, approximately rates continued the primarily growth grow onboarding with rate see following fee fee time increase we to leverage

our across the basis, revenue estimate of billion public strong million from On a of analytics portfolio year views ACV would increased constant ago. a private and year whole XX% is or XX% year contract technology need by demand growth XX% strong $X.X Aladdin. have year from Annual technology for X%, markets performance we and renewals to broad-based of on-premises some and billion, We committed performance funds. across revenue $X.X sales, and revenue X% from increased of integrated account and services growth to currency year to the hedge saw ACV and number ACV, with for ago, increased clients services successful respectively, existing We eFront long and prior licenses. year-over-year. due revenue XXXX. alternatives. expense. The a driving term. risk revenue the $XXX fees XXXX year-over-year, of year increased and quarter signed remain mid-teens Quarterly full onboarding reflects ever expanding also primarily expense increased higher Fourth led higher of reflecting low a of new incentive Total asset in over increased relationships clients impact compensation, G&A largest several in value, clients clients. Full of full We

benefit compensation was and operating fourth compensation we XX% employee of full incentive planned G&A and fourth a because year higher the result year-over-year expense quarter year and comparisons compensation expense. G&A finalize year investment expense primarily higher as less performance up higher from Full up and was GIP's in fees that professional sequential X% compensation spend, income. reflecting relevant fees expense of quarter. technology are Recall Full

business in operating investments profitable year, During and made disciplined the we drive leverage to growth.

year-over-year XXX basis increased operating quarter of up points as-adjusted margin operating margin as-adjusted fourth and year our XX.X% Our basis was of full XX.X% XXX points.

expect and our we overall aim ambition respectively. Based maintain approvals for be disciplined these quarter with higher ahead, to principles on conditions, and time prioritizing for BlackRock's XXXX. of investing the the systematic closing we'd XX At mid-XXXX, of in HPS profitable to we Looking count be to the continue expect investments to to growth XXXX close approach subject to on margin. present, planned customary hiring and last other articulated in months. consistently acquisitions of closing budgeting and in operating in we've growth We'll organic XX our our and delivering lines, regulatory the first market-leading head to Preqin

and colleagues Our HPS are approximately planned bring to new of to X,XXX acquisitions BlackRock. Prequin expected

core technology Most GIP from look of G&A mid- and we serve expense in XXXX our better G&A HPS, the expect Preqin as continued to and and should increase percentage excluding a growth expense. would of the G&A we consolidating operate investment efficiently to high Additionally, clients. in core single-digit more come expense

the remains drive of XXXX. trading share. of $X.X share at through repurchased efficiency. includes repurchases strategy growth year, cash return through and first growth, either invest return of than strategic combination This consistent. This XX been a to repurchases strategy. million shareholders we've price initiatives at returned have scale XX% $XXX our organically shareholders years, element shares In we're billion our combination over billion million repurchases inorganically, market that. of our fourth double capital repurchases. Today, quarter more or XX last represents and then management After dividends annualized to capital for we average a a share and our respectively. Share of We per to a Our full $XXX and both almost for shareholders. for an We approximately open $X.X management investing dividends operational and in consistent

conditions, other transactions present, shareholders. At year based For our targeting HPS equity on purchase consummating and billion both subject shares valuable these spending to XXXX. market proved and and alignment and for of in structuring the during currency with capital for we're the BlackRock transactions, a GIP plans the X.X of them

In to month and addition dividend consistent later dividend, we subject expect for Board growth. quarter of first increase also other our conditions, an this to XXXX market continued our to record track with approval seek and

organic $XXX growth. as $XXX X% billion well portfolio XXXX, Fourth that cash net significant Record net our full clients year included helped ETF across in active, as reflected by billion ETPs generated from by XX% of inflows net base ETF launched total diversified organic into United asset momentum $XXX of seasonal inflows in ETFs and BlackRock our into into of of billion by States. inflows inflows XXXX. annual were representing inflows reallocations. year-end $XXX digital in $XX billion just led net Record quarter in index the industry-leading were net assets region, billion fee

rebalance funding index indices of income. outsourcing a large billion equity redemptions net by of clients, types. variety portfolios. low-fee inflows record BlackRock's net by exposures U.S. Several portfolios billion of of products institutional and was inflows used their investment iShares clients $XX re-risk in As new led mandates $XX Index prices were billion to XXXX, mostly strategies. the several equity net outside active including platform market levels. $XX in from the billion, generated reached States, highs inflows to spot and their bitcoin client net of add into United these equity amid driven billion by $X the large quarter, $XX of This from fixed offset partially

billion, metric impact performance infrastructure in in GIP included portfolio with realizations added mutual year fixed through net provide has the present, drivers full into operating inflows private $XX private in billion updated in for of a private of of with the markets track our recognize At billion GIP fund with retail companies XXXX of vintages activity ultimately for led of $X driven inflows record key are another income by inflows Demand successful $XX from to net income this to also year by billion strategies. Distributions assets. growth investors a returning had strong inflows and markets. credit the uplift. inflows and $X capital net and we active of quarter, Aperio realizations in additional during billion net first realizations inflows. the to remains and strength were exits. year net from $XX $XX private approximately organic exits measuring into strong for expect quarter of primarily successful executing Starting supplement our earnings infrastructure Full active transparency we've private record markets year Aperio on funds. continued older credit. strong, and equity, billion and BlackRock's fixed private

enhancements, quarter disclosure markets, particularly private XXXX. make to the expect of around beginning first in We

cash quarter and prime U.S. the government large inflows billion included XXXX. funds BlackRock by saw and were of management billion in client driven fourth $XX mandates. in and multiple $XXX Flows Finally, net both international new

continue and and liquidity integrated of scale the see delivered even XX% AUM consistency over platform year-over-year. with built We long trillion our record over $X years. and client the with in the up cash last net results strong on of results platform offerings out our to X inflows over XXXX, more in stands growth BlackRock's term, our

our S&P for and than But earnings in about is create to investors a those going CEO. shareholders. CEOs does of Larry's home, have you for opportunities research of We just Larry build next was start current XX at for earnings a are when BlackRock, clients growth in the XXXX BlackRock counted to a are celebrated a on While and clients XXXth optimistic minute. watershed Larry, little meaningful did it's and We're motion call. year How that for only earnings calls. better value to calls congratulations our with XXX assets outperformer keeping the this story. pass positioned We're of feel? re-risking. ever in our a the century XXX into XXXX. I'm score as it is market

Laurence Fink

say I I another There's stays It's feel going any change and complain the My last been fun older. lot in night forward all. at journey can't be the can't a better. is to I a of think I going journey, the cereal XX years, the blueberry. before last bowl the world and in the there's night a with of remains and same. that same meal lot earnings

Happy is thank everything also But Martin. Year same. guess And And XXXth. I the joining So thank our you, it is for everybody. And call. yes, you to New the

We haven't done alone. it

our markets shareholders convince a helping remember to also We I business. our that in the of we're the community today IPO, BlackRock. roadshow in with been original analyst many of understand XX that And we since grateful shareholders the have opportunities have years the ago. tried to us that for when about remain number invest

analysts think are the us with IPO. on X I line of for our the equity

to -- Brian and still to best these us. your all Bill want is for coverage the I Katz years. thank Bedell over And front in thanks So of

users. our of trust an were is for we nearly we've XXX,XXX in X% than compared shareholders $XXX XXX. clients And trillion I to Aladdin the XXX assets. time. year, $XX.X delivered more selling Since S&P about this just began we of the XX% That total for we billion we annualized When to said, as return IPO-ed, beginning. same a has And the for AUM. our employees, about IPO, us clients of Today, company our and Aladdin our first with technology managed

with Historic ago. as had X%. pausing quarter. out XXXX $XXX focusing acquisitions strongest clients executed BlackRock as AUM, the rate to revenues $XXX net the years consecutive XXXX a BGI effective of was We trillion as record fee operating entered their companies $X.X for significant a wait determine uncommon quarters. flow our and record It's since they BlackRock. Clients on in increased not is and added have Martin billion most over we've year now they whether M&A done We our for results, activity of entrusted including fourth billion We see the income took inflows, As place delivered by point. on inflection client we needs. XX us milestone said, record at X record

are ACV embracing growth. At activity BlackRock, quarter, technology XX% our clients instead and services strategy. rewarding Clients fee resulting X% accelerated fourth in and the a into base growth organic

meaningful XX.X% industry income our basis operating XX%. We change. crossed in Our a the our of the XX% performance ourselves margins bar of Adjusted by know revenues, do XXXX. always raise the clients XXX billion of operating and was And year same. model grew annual shareholders exceptional up points. We our and for from $XX up delivered

surpassed to Our fee and and estimates EPS. we even for our results total beat rate, expectations, margins base rate, high flows, consistently addition Street in revenues,

growth Our yet businesses believe X record We we the in HPS the years profitability positioned enhanced results private most organic that steadily will fundamentally market year. outsized And track do ahead. momentum organic acquisitions market will which expansion. our We growth structural our for the making talent, margin drive Preqin. franchise, trends each -- across invest reflect important ahead a in the our strong including and We've growth and full pending we these had delivering opportunities to platform. believe integration have and newly BlackRock years revenue GIP, and invested of of entire of in that strong come. we in thing every is record outsized ahead we're the of investments not All growth, our drive of that or financial

spring, moment few to for be want leaders friend and thank our on new for and built forward. our horizontal take are on with all leadership challenge smooth great leaders range ready over of people on forward. Today, connectivity successful announce the move the XX years for and leadership a roles and discussed number taking business of this many BlackRock, number that nearly and excited after driver recognize both of months expanded and across new us next of is called identify This next the that our will the BlackRock. prepared business a a work drive of Part will responsibilities him to his partnership them BlackRock's for responsibilities our next with our to professional success and of and drive includes We to thank changes leaders clients to growth. look and will to then mine, the phase BlackRock. of a he the the pursue also evolution and we shaping with and our developing a focus next broad friend Mark in helped journeys transition drive ensure powerful take of roles. help firm with what are advance over for I vision of taking has He's leaders chapter our a to firm reflect BlackRock, contributions, through desire his his I've experiences their on strong many that senior expanded Mark into growth months, leadership. key transition. Mark. Mark and Our shareholders. a We a team across drive of been has roles great on Wiedman's team of We've his

reflects breadth experience are and skills excellence. historically organization. experience a the our bringing culture Strategic team and I have BlackRock. firm, top at into of also our and deep and sustained our acquisitions proud Rob It new strengthened talent, of strengthened leadership

us. In they're and to from Few GIP, opportunities of today, want the equities best markets come part on has missed eager close the of the the through are a the years, Preqin our us talent on holding with HPS new already great ago, excellent seizing position have talent position influx blending out serve ahead GIP. And the with a cultures a of teams cash We've with world-class and total to capital BlackRock's clients we that from XX% Our became enjoyed work, consistently months and we parts around leadership to our my firms that for of as world, welcomed together return across of and from and conversations BlackRock. put evolved welcome alongside the energized. the all the the BlackRock. the clients to they Public BlackRock. last in connectivity do across to it teams strength. represents sidelines culture year. it enter year of Clients top colleagues

environment. XXXX expect be investing to dynamic We a

growth growth ongoing As the policies are forces play out, with the important the the and economies trajectories. low debt transition financing most and evolution economic in AI, a be like Mega backdrop. factor an questions will long-term carbon transforming

XX-XX strong investing mix principles this private Capital the markets increasingly critical both markets vital portfolio of Long-held and increasingly relationship role play evolve, construction fully to ever. a portfolio are of blending need and of bond stock to be market key and in than will is nature growth under markets transformation. traditional capturing stock diversifying capital including pressure, assets public will the opportunities. making Private part bonds. The an more critical resilient and

advice Clients to invest. BlackRock to how to coming broaden and where how out they portfolios, build are for

will they private increasingly infrastructure. and many, include markets, private credit especially For

more economic capitalize against for capital We is coordinated in can dynamic approach. BlackRock environment a growth premier evolution. and point build technology positioned across to investments that and shareholders. new requires markets. is clients provider an of for also strategies provide and on BlackRock, made We a backdrop think public significant market a advantage to partner growth well launch long-term and capital our opportunities XXXX an the active our structural private

active and needs GIP, integrate to and BGI, the years acquisition both industry acquisitions ahead investments. scale acquired recent Our platform ago, evolving of our position we our we're and the planned of index and XX structural first trends. HPS Preqin of client each provider

announcement and connect management our we we're with transactions through extremely to closely private to clients and us made to through been comprehensively acquire even and public clients significant HPS portfolio bold XXXX, moves and has we these partner position to recent markets positive, more us to and borrowers. technology. serve see In capabilities allow to capital. more reaction opportunities private raise adding The The great

we contribution our differentiating multiple more For financial from higher drive organic will markets believe and resilient shareholders, private performance the technology and increased and growth, re-rating.

we've to across engines. include our executing markets, our private In solutions develop for outsourcing technology, that growth we We addition ETFs, are multiple the These multi-asset seen set franchises on channels. to are opportunity need long-term and strongest and growth most, clients leading years that and models. like invested capabilities

Importantly, they're scaled and integrated onto X serve that platform with to way a manager able culture no other that is our asset client-led, not can. product-led. We're a in clients

always been significant of using with bonds has as Aladdin commercial analytics data all view, inflows private system strategies is view large and asset operating and mandates supporting like portfolios accessible and stack our all cloud. Technology is the sales aim enterprise We in of across acquisition leveraging are through most Aladdin iShares, the both billion We're years. the another reflects at $XXX ETF foundation across and our operating partners. in industry's It's seamlessly making and of market Approximately through on over by to manage asset of public has. public investment data and evolved for with corporate active. BlackRock. products. platform. ETFs acquisition technology as soon of has net uniting our clients. clients BlackRock. and or last quarter The ACV It a several serving whole with the the clients led system, growth technology half clients multiple set accounting sophisticated of in scale This priorities crypto involving the out into grew includes Since portfolio XX% comprehensive capability resonating and Aladdin were launched example. of Aladdin portfolio expanding classes Aladdin, risk of financial X/X private Aladdin markets or more management, scaled new includes which ETFs Aladdin Preqin. Fourth It's that investments. market by Aladdin them facilitates classes growing the grown one in our the eFront of BlackRock delivering for products private like BlackRock ETFs alongside X

it Bitcoin $XX billion ETFs was inflows a active growing our launch in the history, the Our and $XX AUM highest capabilities it entire only a gathering differentiated behind while less level billion XXX was over in deliver the than accelerating delivered S&P XXXX, product ETP solution. in innovating funds. of largest the year, and ETF at investment to in our portfolio ETF of distribution net asset to third index We're the industry and ETF

our in the In nascent is more ETF significantly, is U.S. it still the and Europe, market we scaled than much offering

organic We of XXXX. over growth in have each growth inflows seen X double-digit in last net the in billion years, in including $XX

the trillion plans investors BlackRock banking enabling digital-first savings to beginning and start in offerings which as X capital their investors powered of the Our this larger and prefer ETFs online are investors industry savings European ETF the is ETF next with driving of Clients' build platforms, their first-time to $X individual needs first-time themselves. more to platform to more are robust than a and Much From issuers is future nearing as saving world. consolidation increasingly invest combined. work and around of scaled assets, growth investors growth are markets to connecting better investors retirement institutions, the a and the is by for multi-asset sophisticated provider. to most individual

largest a serve see wealth by across in models to has better and We multi-asset, ties their to BlackRock of seek shareholders model deepen these funds to their our with as clients. network business main looking pension own asset business BlackRock. the core channels, with both active way corporate their this extending strategies. relationship scale their managers see clients managed positive their relationship multiproduct owners, and the the our partners are capabilities BlackRock. backed We our practices to are in wealth which leading by in their portfolios this effects and where see these and Many corporates ETFs with

that our we're for outsourced to $XXX mandates. of future. billion are with millions more from plans scaled behalf save them of portfolios Many of investing retirement of year, outsourcing help workers This entrusted pension schemes us their clients these than and on

manages option Date people more and worker Target offering, assets, and which XXX(k) now the stream trillion more LifePath solution plan year-end. more in billion invested approaches purchase $XX income than as a market defined The our an launched this work for of pairs help strategy Our at lifetime $X.X to fastest-growing LifePath the target area contribution in to important extending traditional save franchise we're Paycheck is income XXXX, we the annuity-based a retirement. with our retirement. In date with

of as LifePath our offering workers for opportunities the think also exploring here at part become world. will to to Paycheck industry, plan contribution U.S. for the throughout LifePath defined more and the entire retirement partners We employees adopted we're We expand this and default BlackRock. saving Paycheck

local we their United own in We the In investment core built strategy and turn the citizens. own the capital wealth the government platform growth around world, capital job there's in provides have capital to to which of focus markets. leaders creation markets, for around drives own in strong their growth, investors and States. have the of with my long-term connecting our a develop economies, on been robust great further their want conversations clients this opportunity for markets Countries

deepen few last help BlackRock Over sovereign capital markets. to their governments partnered years, wealth and funds with local has the

digital access to We where see digital infrastructure widespread financial products. facilitating are payments tremendous and opportunities India, in efforts

combining to is market an Jio approvals. digital-first partner, management to foundation year, with layering XXyears. our our assets and in expected launch this venture, investment And we're launching next investment investing regulatory wealth later Jio BlackRock businesses. In Saudi opportunities we're Arabia, knowledge investment to AUM expertise X local launch Services, today that Financial future of the with We're growth joint Our fund platform the for result with investments to and will believe local to management public we significant partner over a the the in drive economy. to subject

had asset partners large owners including We've success and decarbonization Temasek. venture our great with with collaborations our already, joint

owners. of partnerships and available over with partnership relationships mobilize of years and built centers we only investments. asset and recent deep many sophisticated Microsoft global the aims which Our local partners, AI BlackRock infrastructure to because data MGX, with states heads are to These

lot on leadership have of spending last clients traveled are see months. the intertwined a to with I and sovereigns in not yield corporates investments spent largest with Bayo a set clients and forget our it team. also time Rob assemble and recent just the time together have Clients, institutional as members owners our our year, to wealth We're other the of deeply clients, asset our and road and it I increasingly looking world. partnerships, in return. good that has

just the eFront serving clients commitment clients XXXX questions. world. own employees The of our in their to for and XXXX BlackRock unlocked for with entire growth acquisitions our the ETFs integrated results was Preqin. up is and around able in a in technology investment platform with private than comprehensively ever. Operator, eventually data BlackRock build markets and our We with from and of the our powered high-performing an portfolio across could that in from Aladdin significant organic the let's and and in to to was class and open beginning. cycle and more strategic in growth upside record its high-growth through way. XXXX, life and before our potential enters scaled shareholders across investments a clients partner markets strength active being of

Operator

first comes Your Blostein Sachs. Alex Instructions] [Operator Goldman question with from

Alexander Blostein

on something well. New we Good the in wanted about as year last Year. start to talked I morning, everybody. motion. with Happy discussion money That's

today? does it to marketplace account And backdrop recently, in benefit when taking you about in most think XXXX you class As to seeing guys expect maybe and asset in XXXX? the comes what had the change motion, you're do more we rates that to what money the move into extent

Martin Small

of fee X% definitely Happy base Alex. in X% through-the-cycle the We starts growth, QX. at year organic in for back-to-back target. trailing was QX, X%. or base fee long-term target Listen, It's our Full we putting with. organic above now all in trend quarters lift Year. growth Thanks, it had New XX-month want the

private exceptionalism, continued strength. we're fixed income cash. a Larry the X% base so very XXXX momentum And in continued bit by strong ETF talked really contribution in to alternatives, out markets growth organic about entering with position fee QX, and rounded real a and of

that segments, see growth. Even continuing We trends organic organic $XX GIP's gathered digital assets, the point in are higher percentage organic higher ETFs growth ETFs, like base overall to fee to like new billion note in contributed into of active would fee a those assets, X/X growth. driving I X% XXXX. ETFs fee over rate base about

this lived So 'XX, I on structural into the impact it has records. think income, market built we've fixed all earnings growth positive organic target outcome. fee target support, business, above growers, base where funds. it's date good drive we like they targets. But XXXX, do a They outsized And around a generate long-term in areas an didn't substantial these in above cycles. our trend, have here markets, looking that business infrastructure experience upside, can Aladdin, business quarter's which been through above-target hit a growing sustainable just ETFs, did indication that private growing obviously, capture markets models, substantial

continue business growers, as see performer and periods. structural bigger we strength to markets 'XX, outperforming BlackRock meaningful into in a in a Looking private rerisking

diversified BINC, periods had 'XX, with of at is to Central Bank fixed 'XX, Even ticker, upside those I'd yield active longer our I And we're were previous above engines. targets. we we Rick duration offer capture. think managed ETF BINC income, cycle like cycles, X% 'XX, management back by see outsized short Going rates, our the election action, even that as in active better Reader, now. and we well Alex, strategies platform cash growth for higher Look

the last We've without in hit credit average market. We years. over to also M&A. are the opportunities I secondaries achieved events X% X% organic more We of in it did QX, in of lead macro some think private X our that going fee in recent base growth benefit X% QX. to on a in And interesting target supportive

HPS, a believe our lot beyond Preqin, GIP targets. Alex. help those can It better we us forward, or lift gives about So business going goal X% our that conviction of

look forward everybody we updating progress. to on So

Laurence Fink

been earn to Alex, highest in the you return the let about living world inverted ability market. me And had money yield a just the curve. rate We've in an so of talk your cash. on keeping

on is you great market movements. You noticed, But yield missed that some steepening. as the curve equity

you're the in money curve. there's so funds put money I That it's great you're said, market going as higher work. of with steepening the some to going to of to the yield to benefiting that time, going curve opportunities close be And lead will be trillion to rates, going area. and in money income said, as And over out with being -- the the by $XX to fixed

in States well development, is other be hope our said, role more access -- U.S. like to more products a years. believe having with economies our if future the the world Martin you investors you're going are and even present underestimate plays role that medium is small credit better principal to robustly As going we with There's you replicated private infrastructure United going other like to And Europe larger over capital where of capital. do of be system developed play and the can't -- startup, much to really now. the strong And I that economy. that with course into company growth. X think one to that the That U.S. and that of the more and I a a even as strong exceptionalism capital of have system, opportunities. no the And next income-oriented the place parts market banking markets just of XX is if a there's to right a the have drivers so in

Operator

from Siegenthaler Your comes Bank question with America. next of Craig

Craig Siegenthaler

I well. Larry. hope question retirement. doing is Year, is on New My everyone Happy

currently, DCIO if many red has have the the and XXX(k) November of strategies in one will X% allocation BlackRock plans largest and managers a funds. break these And in target to So channel. alts but alts, of the largest debating of is AUM manager retirement and date sweep the us

your acquisitions this and HPS, know especially theme. So is GIP positioned if of better given firm don't I for any recent

U.S. we wanted get the to your prospects to So on breaking alts updated finally channel. retirement

Martin Small

for and today, of DCIO It in Year. the we Happy time. We as funds. $X.X New Investors at Larry We're date whole the retirement than But Greg. It forefront retirement of as savers see you I mentioned, target think, over We've the eliminating, ourselves has go, half the listen, retirement by automatically of advocacy adjusting fact, target a have it a guesswork $XX.X company. anything give I'll of think their of BlackRock investment solutions over now for of LifePath fund in innovation. forefront, the first of More mix pioneered We've our history. in trillion back then XXXX. add. manages to to retirement. concept, if some provider. revolutionary Thanks, date was a and Barclays was, through the assets been assets been that #X Global at related trillion that are product I think

As innovating with in Larry went through Paycheck. structure guaranteed the income we've target include been detail, date LifePath to

greater see people we real wasn't It's and It about with benefits talking public blending mean potential just So Prizes private have the better by about also public won markets. retirees that Nobel outcomes portfolio. market about could markets. have retirement I diversification, private.

think doing private with that work. We're into work. think And power target markets of LifePath we've a as innovations doing date we've Group the been bring accounts also things structure We We've we Partners doing public-private retirement thinking private structures. portfolios, part about as where managed same including working target ultimately the how alternatives on, been their about into been path. Paycheck and with as been We've and powered counts so glide to product make think models models, potentially we model always work date on which We'd the can way innovation. markets well. like announced could

to retirement on space And to these think opportunity. we're our in so leading got a the these presence the do investment opportunities we've watching relationships, create channels, real outcomes. closely. expertise better We With we do capitalize is think the the distribution, this

add advice markets For or private harbors, more DC some there'll opportunities, potentially the reforms, tangible reform safe litigation we do to plans. to think to be have U.S. in

tried watching in trade associations. we're with lot at be for doing there to innovate. workers Washington. of bring forefront, the improve retirement touch the real on We've advocated a We the We're there's work behalf the So keeping years, space Craig. is to opportunity in to closely, But connected And to we've retirement with aim channel, we'll opportunity private of a to solutions. markets keeping an think here. if

Laurence Fink

opportunities that think fueling, to expand be will analytics data. point space. me that let is I offerings regulatory having is more Craig, in better essential. add think, And one this and I That

you heavily a very of standard Fiduciary regulation. As system related know, the lot is high. retirement is with

Preqin. a as so essential. and reasons sought the are need data And one and is for that, why result we And market acquired primary of analytics better out the of this

entire asset allow that eFront is and data more on the to analytics to have data Preqin the eFront and Aladdin help with navigate and and have will to better more will and we then believe them will this. take that Aladdin we managers Having -- access we market and information with the have

acquisition I me, we of happen relaxed to reasons And dovetailing so is data work the essential, ] is systematic under regulatory one this [ with And if investors oversight Preqin. to and why think better only made can this key ERISA of our the laws. analytics the have we and

Operator

Stanley. Morgan Your Michael next question with comes from Cyprys

Michael Cyprys

been over Happy month New Year. you a bit acquisition. it's little HPS It's a -- been a announced the since

expanded Just dialogue that have, private the and private curious having wealth with evolved capabilities you you that most believe, insurance about. clients, conversations of the credit areas has some I how excited of given were here, were that in you're the terms

you're take And thinking what which as near see into? to medium more this of curious term you opportunities more Just sort 'XX? growth of best steps about opportunity as here might translate the to term? you that do might versus What longer maximize

Laurence Fink

the we all incredible we quarter. related has relationships worldwide, positive with And and That the dovetails across objective. obviously, and across Well, been second companies. client in very has excited feedback close about clients extraordinarily HPS. our to sometime channels. we're that the HPS need expect to It be to insurance relationships close, with would our all the

over become career, -- when if one and to last part we connectivity with talking could markets we conversations buying insurance has the market. And we've Japan of really be analytics. data bringing business, were that as better management wealth and $XX we these around an of a I channels as with through Preqin these And XX-odd private to the for our have about and the to amount. And HPS size of by one design Middle earlier, to markets, increase and not that will provide as singular wealth a me having and in HPS -- probably and really so will the opportunity that that to credit surprises earlier, seen expand you large all expansion, we've in dramatic I do the and then we're do we the provide portfolios. data already. wealth Europe, now we much years expanding believe of had about frontier believe eFront as we've areas in channels, the scale and more better been expansion ability us. did expanding as the from throughout my right was growth new a And organizations having said when that And the BlackRock the about acquisition primary together conversations you're have analytics the East we overlay analytics that markets great and billion of worldwide to to throughout you But data they having the have globally and

private And so expansion we believe the of credit organization best of take the we markets that to in be will suited advantage the future.

Operator

with Mike next from Wells Your comes question Brown Fargo.

Michael Brown

expense follow guidance to wanted up for the I New Year. year. Happy the on

that FX to as that And So from think assuming that margin, But and puts just are the 'XX? margin outcome. maybe and thoughts in could to we give consider us the you 'XX on takes going I really impact markets relative appreciate the for should some we then, the closed, should thank contribution HPS, as think about for I including mid-XXXX of the how think about the we guess guide. kind that? about we guide, core you the G&A

Martin Small

Sure. Thanks for the question.

So let around context just it. put me some

consistent generate execute organic margins think a capital operating I to approach consistently management shareholder industry-leading and to to strategy. growth. to It's and drive market-leading is on value leverage our creation

in expanding investing of the for It's record growth. track scale just not our about long growth and strong a capability. have business It's while over We growth term. about profitable

more margins got in in record put them. investments from aiming it's in industry-leading months, that and potential. the expenses, scale, principles Our budgeting rules-based managing that's generate our where in with And especially being in can. flexibility to We're prudent keeping line growth to think, organic base outlined the It's the in XX and cost and to looking consistent a, cost XX delivering we continued improving operating importantly, growth over I've most I track making disciplined on fixed investments our sizing variabilizing comes through technology. We've investments business. lens last the

scale improvement generated to indicators I We basis margin year-on-year points grew the think X by came XXX over We in 'XX. the points percentage in by you XX%, improved of income through operating results. close see XXXX, versus margin of end BlackRock in up a up trillion, metric QX, about while more is income X% while headcount AUM was XX%. is growth. more up $X by modest -- XXXX, since operating is a rope employees, the X,XXX headcount And

of we on and margin scale up see which So really continuing ourselves driving in expansion. shows as strategy productivity, that

outlook as On mid- HPS, digits, high excluding is the to for single guidance I the 'XX, mentioned.

reasonably intermediate budgeting way up In terms growth the on Market positive market and positive see highest conditions of profitability over drop movements influences, operating on think income. our into markets more margin item, to are the the approach both should We near major in way the our in environment for Mike, down. term. we the a

of through we markets would on into to accelerate positive and budgeting XXXX. outlined, and this further this margin to drive revenue AUM that the expected we believe we invest growth rules-based margin expansion continue can budgeting So approach through expansion deliver I've and impact

Operator

to We'll Worthington go next Ken of JPMorgan.

Kenneth Worthington

And that think this be see And how I over that income under you get allocated to piggyback in XXXX? your the bit you've fixed allocations to where guess you next for position income XX look we I on generally we you sense fixed to increasing. do I fixed the as the flows outlook case those see are question. or do Alex's the do investors to year? made a wanted What at little as starting, begin thoughts investors the broadly? evolving income are allocations also maybe successfully on months?

we for are too How this flowing allocations while high. the into to months? income XX fixed case about that allocations made think probably sort the do a You the of for next cash

Martin Small

for I that prize, interest income. to but And But rates a far thought fixed is Last for term know I of XXXX, indicate the it that level balanced I this more indicator as I'm income. decade. Martin, potential going watch structure demand rain to duration continue won't an going in reached So you the one. income. that intermediate time go its as U.S. would fixed I'll than highest Nobel has and a to and fixed has longer take for mentioned negative we're a been now term premium years,

the intermediate premium Larry being And to deficits, that that opportunities that increase market large issuance, to trillion significant market and to mentioned are fixed allocated fixed that going we over from we we of with income, for or they're of a allocation you'll longer-term Now bear $XX to into and money do around see the And around fixed weightings their and in some our people is models whether look the steepener, that business, a income. a see their see to is see countries move going at income. through to enough lot duration income. under looking believe I globe be increase treasuries steepener cash that there cash be longer bull and there's duration

last we saw demand. year, So a strong

That's And fourth organic growth. included flows X% billion XXXX. in fixed billion quarter $XX driven the alone. Our $XXX income that asset were in

to the better in other your wrappers is fixed of one Now interest reasons for demand this income. express

from institutional demand continue fixed partners. and as came index we and iShares, income this and fixed across include active insurance non-ETF So saw retail, well, not scaled just to income, active assignments primarily

end if of of and think lot a longer curve. spread clip that the it front great used not duration to expect a opportunity as continue to we of clients presents and I want curve, diversifier to into deals now a solid the is we even So that at end income as reliable the be, the see

run-up need other up year, in income. is the over overallocated to So they fixed equity, -- made last so them actually, -- in part catch equities to the

that cash which then to asking think markets in in well, the acquisition and roll I as continues but describes intermediate So the longer change, not move part only Martin and private the fixed of and were it will duration and will Larry you cash as into public income paper, rates it markets, into be be about.

Operator

Deutsche comes Your Brian next Bedell from with question Bank.

Brian Bedell

you've -- strategy certainly become New Year. firm you've was just imagine the certainly No, thinking, always great, well yes. Happy in leading I fixed as become has what XXXX but manager. was expectations. I evolved, Certainly sitting income you couldn't the I think, back knew beyond I anyone's

So congrats that journey... on

Laurence Fink

So have XX yet? you turned

Brian Bedell

been It's long for sure. a Exactly. Yes. time Yes.

thinking particularly maybe retail in the So strategy and about just of end the this evolution of that. alternative

can from in of and demand earlier. channel obviously actually to roadblocks you a building of obviously XXX(k) portfolio that into their know harbor up channels. So I participants lot you you the those your alt the the retail have -- of confidence And the likelihood maybe confidence. on it's, the clearly there's that alts your answer, because because about sponsors in talk side. plan into talked a would XXX(k) little it safe substantially. But view provisioning lot bit the into just go adopt about still market on a within XXX(k) -- of your to comment growth -- Clearly, benefit ways Maybe planned the within on

building I your just, overall, and even just confidence potentially So the on for 'XX in in alts inclusive 'XX you, for market -- XXX(k). in guess, retail of

Martin Small

so Thanks much.

I'm one we of So -- the I'm of -- one is most businesses BlackRock. of fond fond the most -- at this here

across and retail relationships wealth globe. strong markets in have We the

early. As long-term aim to and build blend markets help is portfolios market private his is wealth in The Larry our mentioned that public still remarks, exposures. managers

and Cerulli wealth single markets manager the the most digits private still allocations said, dinner you of to data. retail As in on low

wealth focused and and managers on and better access retail investors, private that's to innovating markets accounts, provide accounts. are taxable retirement nontaxable We to across for

some me think couple working bigger things we're of Let tell I about the and on are what a of you opportunities.

public-private, As subscription announced, offering We a we're varied model wealth that a we huge allocations but different manages private Group. working on risk blends tolerance, to that on that's moving subscription with cash this on that's flows risk model a think simplify we model a markets single portfolio with had a the will the solution single based think Partners tolerances product first-of-its-kind with document, access, managed previously the unlock.

United in structures planning new offerings our of solutions accounts. recently are private documents when of to the Asia, adoption also cash We in multi-alternatives. for ELTIF X.X Those distributions private the One offerings and place evergreen into We're well. markets States and access. In Those it we're terms States in credit account multiple as and tax wealth in the We and structure. with evergreen similar do markets Europe initial a the and equity products retirement under in a barriers the operational United are burden managers products. for private have subscription of fund launched evergreen is that different managing and those markets the future. at offerings just infrastructure funds and managed private increase can flows think comes bringing to better to looking

particularly that BlackRock a the has The assets of market billion also scale and a scale We in channels wealth-focused acquisition HLEND, the the to that the bring one bring market. including great is, than large performing there's in the to in us, in expertise real HPS channel HPS to think to planned for opportunity wealth of RIA more where BDCs is continue where going high $XX footprint. of but

debt. in many B the excellent we have have in We that really of momentum strategies

Our about non-traded million has and growing. BDC $XXX-plus

Wealth, biggest integrate heart unlock, us really into our $XXX be a venture SMA I it's ] with semiliquid fund, that and ahead models Group. Partners and the Envestnet, do the with competitive models franchise. iCapital, deal It's Vestmark. the managed [ of we previously of have the Jio think have our over of and do we and to billion heart partnerships think opportunity of advantage. at lot integrate the many interval CASE the growing. same at That announced It's markets had would biggest I to is CREDX, private has products credit of Our

do the structures favorable are models and X in [ to best Europe. us so channels can clients have we here target help execution funds and accounts, So retirement in and think we conditions retail manage for to and U.K. a ] date that assuming wealth channels the ELTIF and

Operator

Bill from comes question TD next with Your Cowen. Katz

Laurence Fink

Bill, XX years.

William Katz

goes Yes, that It indeed. the quick. for out. IPO It goes a I remember pleasure. quick. conversation. Anyway, shout It's you thank been

Just than think buyback. about around evolution maybe your of guidance platform just the either one gentlemen, the

relative between power dividend growth And durable, continues and to about become As how thinking allocation diversified more then maybe your that repurchase? and about the earnings and to underneath how scale you the are earnings the more power? payout

Martin Small

Thanks a Bill. lot,

allocation strategy is capital Our consistent.

on preference As balance hoard is invest We business business, and I investing sheet. then our cash to those of our growth. share to drive allocations the an don't dividend the main of focus mentioned BlackRock's repurchases, size output in the they're earlier, first, capital. in the to that's company like after excess We the organic manage

strong So record systematic. that through returning of that excess very share repurchases are a we cash have track

of The organic debt I ratio a size levels generation from the variety result market equity beta reasonableness the inorganic factors. company, and of the in versus of financing financing. of investments, sizing leverage repurchases future flow of organic FX, the the growth would cash think and and whole of

to buybacks, share But returned share record all is management -- So not clients our has capital of to into the that program. know had our sizing compounder this repurchase we and that share for and an we repurchase dividends become strategy. up keep ultimately shareholders. track an these billion we and But of year, BlackRock the $X.X to output, shareholders. the want an attractive between things input would influence

Operator

Fink, do and have any closing have questions. we allotted Ladies the remarks? you for gentlemen, Mr. time reached

Laurence Fink

Thank you, firm and thank want our your morning continued do. interest I joining Yes, everybody to operator. in I for us this BlackRock.

growth. structural define growth markets are Our and record ahead will results that of the invested the of phase capital trends next believe in XXXX we of drivers our management. our just We future the beginning and asset of

integration to lot HPS. than deliver we XXXX better and including our differentiating clients We ever shareholders. our have ahead addition of and the of and enter positioned creation a value to us, for work exciting planned And performance Preqin of

Everyone, enjoy. quarter Talk Thank have to a really you you. quarter. wonderful and the in next

Operator

This teleconference. concludes today's

now may You disconnect.

BlackRock (BLK) 15 Jan 252024 Q4 Earnings call transcript