BlackRock Assets Reach Record $14 Trillion on ETF Boom

BlackRock Inc. closed out the year with a surge of investor demand, attracting $342 billion in total client inflows during the fourth quarter and lifting assets under management to a record $14 trillion. The milestone comes as the world’s largest asset manager continues to integrate a wave of recent acquisitions aimed at transforming the firm into a major player in private markets.

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Net inflows into BlackRock’s long-term investment strategies totaled $268 billion during the quarter. Exchange-traded funds once again led the charge, pulling in $181 billion and pushing the firm’s ETF platform to $5.5 trillion in assets. Including money-market and cash-management products, BlackRock’s total inflows for the full year reached $698 billion, setting a new annual record, the company said Thursday in a statement accompanying its earnings release.

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The pace of inflows easily exceeded Wall Street expectations. Net additions to long-term funds topped the $232 billion average forecast from analysts survey. The results also marked the first time BlackRock included assets from one of the industry’s largest outsourcing arrangements: Citigroup Inc.’s decision to hand roughly $80 billion of investment assets from its wealthy clients to BlackRock for management.

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Chief Executive Officer Larry Fink said the results reflect expanding demand for BlackRock’s capabilities across regions and investment strategies. “Across the globe, clients are looking to do more with BlackRock,” Fink said in the statement. He added that the firm’s business pipeline continues to broaden, spanning public and private market mandates, technology and data services, and a growing mix of client channels.

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Strong inflows translated into solid financial performance for the quarter. Adjusted earnings per share rose 10% from a year earlier to $13.16, beating the average analyst estimate of $12.28. Revenue jumped 23% year over year to $7 billion, reflecting higher asset-based fees, market appreciation, and contributions from recently acquired businesses.

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Operating expenses also moved higher, climbing to $5.3 billion for the quarter compared with a year earlier. The increase reflects BlackRock’s ongoing push into private markets, where building scale requires significant upfront investment in talent, infrastructure, and technology.

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That expansion marks a strategic shift for a firm long known for its dominance in public equities and fixed income. BlackRock is now repositioning itself as one of the world’s largest managers of private credit, infrastructure, and alternative assets. To accelerate that transformation, Fink committed roughly $28 billion to acquire Global Infrastructure Partners, HPS Investment Partners, and data provider Preqin Ltd., representing one of the most aggressive dealmaking sprees in the company’s history.

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The acquisitions are central to BlackRock’s ambition to become a leading force not only in private markets investing, but also in the data and analytics that underpin institutional decision-making. Together, the deals significantly expand BlackRock’s footprint in infrastructure equity, private credit, and alternative data, areas where investor demand has been growing rapidly as clients seek diversification beyond traditional stocks and bonds.

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Integration work remains ongoing. BlackRock completed its purchase of credit firm HPS in July and has since been focused on weaving the newly acquired businesses into its broader platform. At the same time, the firm has been rolling out new investment products aimed at high-net-worth individuals and retirement savers, including defined-contribution plans such as 401(k)s.

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Those efforts are already bearing fruit. During the quarter, BlackRock gathered $15.6 billion into liquid alternative strategies and private market assets, highlighting growing appetite from both institutional and wealthy retail investors for access to alternatives within a large, diversified platform.

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Despite the record-breaking asset growth, BlackRock’s stock performance has lagged the broader market. Shares were up 13.4% over the past 12 months through Wednesday, trailing the S&P 500’s 18.6% gain over the same period. The gap reflects investor caution around integration risks, rising expenses, and the near-term impact of higher interest rates on asset valuations.

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Still, for long-term investors, the latest results underscore BlackRock’s ability to attract capital at scale while reshaping its business model. Record inflows, expanding margins in key areas, and a rapidly growing presence in private markets position the firm to benefit from structural shifts in global investing.

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As capital continues to flow toward alternative assets, infrastructure, and private credit, BlackRock is betting that its size, distribution network, and technology edge will give it an advantage. The fourth-quarter results suggest that, at least for now, clients are willing to follow the firm as it evolves into a more diversified and resilient asset-management powerhouse.

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