Blackrock has been buying a rave, which will change the makeup of the world’s largest asset manager. Blackrock announced a series of high-profile acquisitions last year, including a $12 billion deal to buy private credit manager HPS Investment Partners (HPS), which is expected to close in mid-2025; and purchase infrastructure investment companies The $12.5 billion purchase of the Global Infrastructure Partner (GIP), which closed in October; and a $3.2 billion agreement to buy alternative asset data provider Preqin, is expected to join this quarter. “This is a real change in BlackRock’s skin color and leverage,” BlackRock CFO Martin Small said at the Bank of America Financial Services conference last week. “It’s a A big change. “These transactions were conducted at a time when Blackrock’s exchange-traded funds (ETFs) and other funds faced fierce competition – Vanguard announced on February 3 that the fees for its nearly 100 funds fell . This led to a slide in BlackRock stock. We bought the dip sauce at the time – calling it an exaggeration. Small said our view was amplified, saying that reducing fees would not have a significant impact on BlackRock Financials. “These three acquisitions will help BlackRock accumulate more assets,” said Jeff Marks, director of portfolio analysis at the Investment Club. “These deals should strengthen BlackRock’s revenue capabilities and can help stocks.” Reinterest rates are raised to higher incomes. “We have been slowly building positions in Belek since mid-October. BLK 1Y Shanbelek 1 year, exploring the advantages of each transaction, HPS’s purchase will add $148 billion in assets to BlackRock’s existing $89 billion private debt platform. It will also expand BlackRock’s presence in a profitable market for private credit, where companies or investors lend funds directly to businesses – allowing them to bypass traditional banks or other parts of the public market. The industry has grown dramatically over the past few years. After the 2008 financial crisis, regulators cracked down on banks by putting stricter requirements on loans. In turn, private credit funds stepped in to fill the gap. That’s because it can meet more diverse financial needs, helping borrowers obtain capital that may not be available through public debt markets or bank loans. However, HPS is not BlackRock’s first step towards private credit. The company has a footprint in the market for many years. Blackrock bought private credit manager Tennenbaum Capital Partners in 2018, and the company had about $9 billion in capital before the acquisition was completed in late 2017. To be sure, this is a small part of the size of HPS’s trading assets, reflecting Blackstone’s growing interest in space. Evercore analyst Glenn Schorr recently told CNBC that BlackRock decided to “grow too much (private credit.)” he added: “It makes so much sense for their client base. They think, ‘We should be bigger, we It should be bigger, so’so they decided to buy the largest, best private credit manager there, and they just decided: “Big enough. “Also grow its private credit business. In January, Goldman Sachs announced a new division focused on lending to corporate clients and funding larger transactions to deepen its private credit business. The division is called Capital Solutions Group, The three businesses merged into the company’s global banking and marketing division. Prior to that, Goldman Sachs was also listed as the sole advisor to the S$11 billion investment of Intel’s private credit company Apollo Global. CEO David Solomon will The growth of private credit is described as “one of the most important structural trends in finance.” Bank of America analysts reviewed last week’s meeting and meetings with bank CEOs on Tuesday, reiterating their Goldman Sachs purchase ratings, partly because of its Private credit business. “Since the 1980s, GS has been in private credit and GS continues to develop alternative businesses, which should drive economies of scale. “At the same time, Wells Fargo has established a partnership with the Center for Money Managers since 2023 to provide direct loans to intermediate market companies through onshore consultants. Centerbridge and other investors fund this direct loan fund , while Wells Fargo uses loans from existing clients as a replacement for other financing options. “This is providing us with a debt that we are reluctant to invest in,” Wells Fargo Chief Financial Officer Mike Santomassimo said of the partnership earlier. Table of opportunities related to customers, but we can provide them with solutions. “The Wall Street giant also lends directly to private credit funds. Asset managers and funds accounted for $57 billion in loans to $2,000, or 6% of Wells Fargo’s total loans. Bank of America praised Wells Fargo on Tuesday for ” Private credit is seen as an opportunity, not a threat.” BlackRock purchased the world’s largest independent infrastructure fund manager GIP, with assets under management of more than $100 billion, adding BlackRock’s current $50 billion in customer infrastructure funding. GIP in recent years, GIP’s huge asset growth assured us that $22 billion in 2019 has increased fivefold. Infrastructure, in particular, is the fastest growth in private markets in the coming years, according to BlackRock CEO Larry Fink One of the segments. “Many long-term structural trends support the acceleration of infrastructure investment, such as increasing demand for upgraded digital infrastructure, such as fiber broadband, cellular towers and data centers; at airports, rail and transport ports (e.g. Airports, railways), updated investment supply chains are reconnected and decarbonized and energy security are carried out in many parts of the world. Bringing Preqin under BlackRock umbrella will strengthen asset managers’ existing Aladdin portfolio management platform – providing clients with more understanding of the opaque world of alternative assets. “The private market is the fastest growing segment of asset management, with alternative assets expected to reach nearly $400 trillion by the end of the decade,” BlackRock wrote in the Preqin deal release. Each is a classic example of how BlackRock continues to meet the growing demands of its customers while simultaneously striving to earn more and more assets. The company had $11.6 trillion in assets last quarter, its highest level in history. “BlackRock is very adaptable to the world. Think about it,” Schorr said. “They are just managers who are mostly fixed income, and then they bought (Merrill Lynch investment manager) and got equity in the business. Then, they were mainly ones Active managers, and they then bought iShares from Barclays. “He added: “They always see around the corner, see where the world is going, and then adapt it.” However, at the moment, there are no other big names on the table yet Acquisition. Blackrock said in his novel at the Bank of America conference that these transactions “put our near term agenda for private markets, data and technology.” “I emphasize that today’s Blackstone is not the past three to Five years of Blackstone,” Small continued. “Today’s Blackstone will get 20% preparation on the basis of revenue in alternatives, private markets and technology, i.e. secular areas with less market sensitivity, which I think should provide more stability in the earnings, with diverse returns Sex more through cycles.” (Jim Cramer’s Charitable Trust (Long Blk), GS, WFC. See the full list of stocks here.) As with Jim Cramer’s subscriber to CNBC Investment Club, you will receive a trade alert before Jim makes a deal. Jim waited 45 minutes after the trade alert was issued before buying or selling shares in his portfolio of charitable trusts. If Jim talks about a stock on CNBC TV, wait 72 hours after the trade alert is issued before the transaction is executed. The above investment club information is subject to our terms, conditions and privacy policies and our disclaimer. There are no fiduciary obligations or duties created due to any information you receive in connection with the Investment Club. Specific results or profits cannot be guaranteed.
Marquis at the main entrance to the BlackRock headquarters building in Manhattan.
Erik McGregor | lightrocket | Getty Images
Black Stone People have been buying orgy, which will change the makeup of the world’s largest asset managers.
