BlackRock (BLK) 12 Jan 242023 Q4 Earnings call transcript

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 2023 Earnings Teleconference. Participants for today's call will include Chairman and Chief Executive Officer, Laurence D. Martin Officer, Financial Chief S. Fink; S. Small; President, Robert Kapito; General Christopher J. Counsel, Chief Partners, Adebayo Meade Infrastructure and Executive and Global Founder Officer, Ogunlesi. [Operator Instructions] Mr. Meade, conference. you your may begin

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

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

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

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

and and joining partners Martin, and excited we're I'd like here remarks. you and Happy New after and prepared Thank alongside acquire Chris, Rob also to results. today agreement you, Year. GIP Ogunlesi with Bayo and with to us fourth welcome and Infrastructure quarter to new Global everybody, our for discuss full me, is all all BlackRock's from year announce our very We're friend founder my Partners, and answer their good to to today Thank questions your to our here Chairman morning

fellow Thank GIP and colleagues join BlackRock. the My and you, I Larry. about across founders to are very opportunity excited

better even for clients. our drive will opportunities combination Our

with clients Thank critical All of leading you. outcomes us at vision and better GIP sharing investments delivering economic that the global drive growth. of

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and by clients. needs market growth us what because again is We're a what view taken for for forces the on always doing firm. drive firm guiding is that will our today outsized today, our of we've Our it our clients long-term

investment to operational transition public driving Infrastructure be mobilization a enhancements the fund ability critical In to rate the private are energy independence world, the drive investment critical digital capital infrastructure. a a energy higher is fast-growing environment, performance. to Growing of advancing and market. deficits, modernizing will

evolution we industry the we transformational Today, announcing for management X entire are ahead for markets. see anticipation of global capital the the asset changes in and

will will will Our how leadership the GIP we our nearly asset and simplify fast-growing in and strategic hard at markets And deliver our years across in ago. with for operating largest acquisition access a infrastructure in of of in since our combination The planned These $XXX as and billion for clients second work deliver BGI largest propel BlackRock of clients. the infrastructure. are total a private clients client platform assets. rearchitecture markets. scale we in organization BlackRock's market-leading acquired infrastructure, XX GIP transformations the improve market expertise provide the investments platform substantial private integrated over world will The manager to infrastructure

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With or common debt we clients a with global clients equity, for holistic deliver excellence infrastructure and across strong culture will serving manager solutions. our of together,

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context. to the and results on our the transaction, turn I of our offer now XXXX me cover quarter specifics you through further Let Martin take before to

Thanks, Year Larry. everyone. to Good happy New morning, and

I back performance a have time GIP our so We and for to the more longer we business on and plan call review today of it pass questions. financial Larry, transaction. that detail for Before results. I'll provide plenty

release our on results, our both as-adjusted focusing I'll GAAP earnings primarily as-adjusted financial be While results. discloses and

clarity we clients accelerate share motion and as BlackRock XXXX. generally portfolio deliver assets. changes a the client grower the BlackRock money the in The throughout assets. expense efficiency. and for wholesale repositioning inspiring building the what risk have platform investment, technology of portfolios clients portfolios that platform. shock bring We've campaign investors, design clients just are us. quarter portfolio built to described, of expect rapid a saw help go allocation conditions this by all expect making in at evidence an into tactical with fourth outcomes. us winner is more At been unfolding clients' Whether having they rates The scale, years of within allocation year about with portfolios time rate greater rerisking our business with We them assets investment cash BlackRock there's into of consolidate BlackRock, last future. a capabilities X for certainly we spurred and for to and be of doing on practices of they're to market is excellence serve years of continue spoken adjustments, and monetary They beyond investors the executing a deliver out in trend to their business product at and a asset we'd risk cash XX it to clients when It's rising character of or we on for terminal funds BlackRock. upended and policy structural and

XXXX, BlackRock inflows fee net In organic growth. delivered and $XXX billion base X% of total generated

for Importantly, the finished November in net fourth of and the $XX earnings year we $XX.XX of in XXXX, significant annualized revenue flows share last year the increased we approximately from the X generating full year. income per total year-over-year. X% Operating fee growth X%. December, in was Full relatively surge billion while of saw inflows. $XX.X months flat organic quarter billion In base momentum declined with resulting of by billion $X.X of X%

was income, X% million revenue quarter gains impact the ago, earnings higher also investment a markets of share of higher was net operating year-over-year, nonoperating driven AUM co-investment included higher Nonoperating billion in performance primarily up private $X.XX and reflecting $X.X by X% while income per Quarterly for higher on the quarter, current of For mark-to-market $XXX billion versus our the fourth X%, by in year was income higher of average of $X.X the results driven quarter. portfolios. equity fees.

rate effective potential approximately rate nonrecurring currently items. of Our because for We fourth discrete for in reasonable XX% or driven tax tax part a discrete that or in the XXXX, by run XX%, tax as-adjusted actual estimate though items quarter may changes projected is rate tax was differ the legislation.

primarily average by X/XX lending income was market On base billion our day X% the equity on of effective of count the was basis, revenue. approximately preferences to positive base $X.X rate due lending an Sequentially, annualized non-U.S. was driven of revenue fixed This securities X% fee client and lower Fourth year-over-year, cash. was revenue, impact of to X%. higher quarter markets fee and compared quarter. and and fee beta lower securities lower growth organic equivalent up basis point AUM, securities a lending securities and favoring fees revenue underperformance lending base fee down third

global and of base X% total of the a quarter. quarter accelerating appreciation for entered with approximately quarter, base bond rate estimated fourth market toward As than fee the end result run fees first higher equity and our organic the the we an growth

and million, services and increased year in low long of year reflecting quarter. of clients $XXX renewals with successful third a increasingly clients liquid technology and X% as for increased Annual year-over-year onboarding large ACV Fourth quarter ago, term. XX% scale. over Quarterly year-over-year, of increased and $X.X revenue eFront from higher from year to solutions the full and the and reflecting growth on-premises $XXX alternatives partnered respectively, revenue business integrated mandates. licenses remain the ACV, long-only transformation fees contract new to mid-teens increased committed drive full value, billion technology revenue X% BlackRock and or million to performance We

be to managed areas greatest X% XXXX, reflecting disciplined expense. spend resources increased compensation, our XXXX in fund focusing in effectively we'll direct expense with G&A and continue Total and our discretionary in the opportunity. in We higher

operating operating leverage quarter XX.X% of drive margin basis points and after shock growth increased XX the market to profitable year-on-year Our of we XXXX. by continue fourth as

Our points operating of technology. the revenue XXXX people primarily our our impact negative of investments XX.X% exchange ago. was a movements down full and basis entry year markets reflected from XXX as on in and margin as-adjusted The critical decline year rate well foreign as

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growth In of initiatives. free as-adjusted our results. resourcing included investment quarter, million compensation expense addition, in $XX in capacity the for to in our up resulted made fourth most decisions we This which a onetime is important

evolve approximately our career we approach expertise, how a and actions Overall, our shape our targeted and enhance changing opportunities market taking organizational these growth. technology capacity, operating we leverage and impacted X meet to and workforce sets increased disciplined X% for and investment we teams to by create environments, skill we of

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has One of been long-term biggest our advantages scale.

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over leverage time we're operating Our committed and delivering has and platform strategy margin. operating premium to delivered scale a

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institutional namely out liquid outflows primarily of record has was Safehaven Full in rate strategies of AUM billion XXXX. $XX rising Aperio, XX% redeemed inflows the their billion which inflows generated $X retail XXXX, funds. grown driven saw to of equity net in year. fourth by acquisition inflows adjusted net offset including allocations providing were net This of With active redemptions positive cash $XX sensitive alternatives Index strength $XX year billion returns. in fee and of business mandates billion. quarter strategies from throughout large billion, of outflows of Aperio net funding to by clients net outsourcing the $X bond BlackRock's needs. due respectively, $XX allocations and $XX several led or low and several were billion since as cash flexible our by billion for partially significant

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Turning financial to the terms transaction. of the

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With that, Larry. I'll turn it to back

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entered by a that BlackRock, we our just done before. At client I and prosperity. the positioned greater for as opportunity in attitude. We greater started. are our year see money, clients, momentum, for of we for energized I an feel I growth the And XXXX growth future trillion XXXX entered shareholders getting than entered with and and we really and see $XX strong with our I never we're great tomorrow for today, stronger opportunity today, BlackRock see ever organization opportunities

it for Let me up open questions.

in you. As participate the Thank also I mentioned, will Q&A. Bayo

Craig of Bank [Operator question Siegenthaler America. from Your comes first from Instructions]

the hope I is and deal. well, on everyone congrats doing

you. Thank

deal. actually GIP is question on My the

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question. Great

it think by and me will I be answered Bayo.

strategic once rationale. let go over again me the So

are more a I governments more turn, infrastructure. for I As do difficulties going in have doing focusing And prepared horizon And are my be going financing. said and bright and More private. more We're public, would think deficit in matter. and more everything saying. say, deficits said, echo governments speeches, would Bayo even to as just to I very to investment I I'm more on beginning,

the amount upgrading is electrical world, associated are U.K. capital lot of infrastructure for going If of are need of be to the and could of in believe sell they has a capital they're good necessary. improve very broader helping around that to sector for vital. And that decarbonize they to a If as it of ports just provide in very working we and examples as the to is of in are energy, time, more But trying of leader is more look I success using the assets. and the of doing reliant been energy them in going the the to some their GIP's very be need the economies at -- travels independence. that. to with think Australia our provide in to grids decarbonizing form must. that world, In with to more a they need or more be if we we more and for the private but enormous. going on capital power services GIP have to be importantly energy the same governments of I worldwide, about be terms going -- capital is are amount talking their more interconnectivity wind the investments and importantly, that, is everything, going governmental upgrading leaders solar, digitize my develop The the needed important. for be worldwide growth to quality need

dramatically. the grow demand dramatically, for middle-class travel need grows the air into a more for more beings grows As and lifestyle, airports high-quality human

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the about to in the greatly global pretty opinion, expansion capital going the industrial the be years next of is large and so our markets that logic is And XX infrastructure.

to of above as what wealth mentioned products, throw to management long-duration asset type a And a they so funds. remarks. in asset enjoy will infrastructure assets. But to I strong as a believe class importantly, I my you prepared these inflation-protected opportunity great grow believe these in the said for coupon very times providing capital going we public for is demand high so the types can only And wealth, few a to larger of we off all duration, returns. would larger. than Having of these They're long retirement products market say,

both retirements, we in. business model. sets. Bayo board the so us. BlackRock under is growth intellectual believed look board, the will complementary defined space, believe funds, that and forward pleased can Black we today, had where be from where a I I'm the had organization And I we are clients importantly, post BlackRock, It my and infrastructure let I we preferred more going BlackRock Bayo the capital these sovereign In bringing that allocation. our that see and funds, it's importantly, we most of was organization board, say wealth then as X we side, in X believe only I'm And closing. for opportunities real create joining a space across had skill only across just GIP that about X team sovereign the more in will And only to asset major team the would alongside the We such superb in the tell infrastructure. both having and benefit their leaders -- defined believe calls BlackRock target. And to with only instruments. and contribution you their Bayo talk area we at believe

Larry I think to is I'll What that add is exactly right.

investment. the of infrastructure We age are about leading golden

to we accelerate at And view so looking thought what us Larry what are ourselves, right. infrastructure at of point for we view, the it of both point that was from doing going we to trying keep We're do GIP is how do. the but by do we always investing, from question of

are yield They the have very want yields, that infrastructure We average in. funds infrastructure to are for our X%, of uncorrelated doing on fact yield. asset okay? We assets over they well. a the On like private funds what rates. tailwinds funds well about interest are classes. investing. managers, very pension generated going in capital last is Think X% They client what's our today. is other XX that invest are high that has X Infrastructure infrastructure assets to tremendous the like drive years to asset on sovereign mature the the fact annually the these demand going That's side, the world

do investors the where the thought large BlackRock is And years so is So okay? They okay? protection, they estate, that them, our complementary. Rob mid-market that we're I But They've plus very make X in them they've this X. the over X a accelerate it mid-cup tripled sure that And we flagship X, X have X X I'm like the other in real sold services, equals cup it. doing. funds, all last not that Kapito When Compare what made size growth lot these We the business. congruence directionally infrastructure that correlated. it investments. X companies built real commercial only a The okay? Rob but with they're had or was of We BlackRock marriage provide has we look sort or right? of downside businesses, XX single-digit XX fact correct, to is whether the at of make know double-digit asset didn't a investments. how year, said they are terrific a owned assets. essential not marriage asset it's the deal heaven. EBITDA class, EBITDA love last growth. asset of there's Because of classes because we are these fact

It's business. debt We investment infrastructure investment ours grade. mostly is grade, below mostly terrific have a

solutions capital that business have. don't have We we

clients, can you businesses mid-cap to together, clients, these cap array X put if go them offer we a clients, solutions. So large complete of

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Larry price, don't mind other because put people to and -- it's saying Now higher that I is for of this. recall well. out wish BlackRock me a I have going And ahead worked GIP I very known then think Martin ask should but thing all and hope I the

are XX% consideration a thinks the we are And tells taking BlackRock the We of BlackRock taking think undervalued. low the stock fact offer undervalue. also initial okay? stuff, The stock. we actually was that from that model us in like stock is We in BlackRock XX% it's fact their

is say different. I'd thing about Larry call final at will be the actually the how very And talked looked we --

BlackRock what or also when XX BGI, Interesting I it today, it X has at assets billion. done actually they we've think acquired when bought businesses. looked that's has absolutely [indiscernible], true. iShares But trillion

Okay.

X.X okay. So it's now

Okay.

scary. So they that's little a sites. actually Infrastructure, bit the triple

the clear least answers at message hope our double is me I supplemental it's question. to infrastructure forward. going of the So we your that have size to portfolio

with Morgan next Go Michael to Stanley. Cyprus

transaction. Congratulations on the

plans for Just curious the what are integration.

seen could driving particular market from private other lessons acquisitions you that the And about that think that transactions, you bit? you If a take success away we've here? any about as across talk industry

Happy New Thanks, Mike. Year.

record of And strong We be believe transaction prove another integrations will track successful success. at we this BlackRock. have to really a

that and very on common We transaction the vision, help the laser opportunities, I platform. about shared investment think to GIP in us diversified the we the strain focus facilitate cultures, was spoke know values much leadership the process more the Larry the that transition and growth teams same the reduce of and do shares clients. rigorous into clients with on done in and also structuring new a Bayo

future be in and of to add Some operating businesses and that performance We've going announced help Larry thing with of about reorganized the platform, remarks, aim for nimble aligned more clients. organizational experience us integrations. with our is we changes talked integrated track better the also outcomes today our for his are the clients. record I'd prepared delivering The and

markets infrastructure business business private the today, way we inorganic our built all the and have with back activity been integrated. substantial existing through that to lot going we of have XXXXs the built inorganic have We early that transactions also a successfully

with for building and So to and the team GIP the look we've experience been infrastructure in his business alternatives. this who and forward XX have years and doing Bayo in entire accelerating substantial partners space it

the this of I'll the many you talked And are is solutions debt that thing say on highly equity a in complex through in of platforms that side. I about on some the Bayo acumen terms complementary differences integration ways, in and in side, just just these the investing think last less is integration

And with bring us clients both in more makes and to the that position I for many so platforms in of as overlap, solutions. investment many easier of the and integration, in ways, characteristic ways, nimble the agile we as In well clients to have limited think, together. amounts our

thing. the Let me an combined I got big we lot. government going And to to governments. be a are be on corporation could more. from the sides going are to are saying, road there the telling and we we and the amazing Bayo we to just going do everyone an I okay, have add X story. -- things organization, e-mail story And are just a with from

we investors a And them. But key everybody I I believe to is invested have to even just on better the this, sure our merits and combination understand was clients that our do they is being our GIP that execute forward BlackRock But it this job about the in think they that the sees look and that I with for is nice are So very we that excited that road making Bayo. and received. e-mail make and the sure way. and of that

KBW. to next go Michael We'll Brown with

trajectory. think organic I'll interest to visible a been rate there's here Obviously, condition more lot with what Maybe of optimism of seems income we just a growth as about flows to outlook the and the the XXXX. be around acceleration fixed

early institutional income And about they're what to and you your progress about XXXX? I some you're conversations through allocations that hear So we the into Or on kind funds bank that. where or had clients how having moving Is ownership deposits? you inflows, of when shift should that will about the money of commentary direct think is with regarding maybe funds? securities from market think the fixed money from of to -- it Just of from? where kind and love it expect some

little we growth. billion talk of base some outlook on organic X% about fixed In the Mike, just will Rob bit obviously, income. Great, your and start $XXX inflows then net it's XXXX, delivered specific Martin. organic of fee and I'll a total growth

XX. excellent us, our We exceeded positive continue through or have And on XXXX, while on industry have but don't you our be years, decay. fastest 'XX, it over market volatility, here 'XX, fee any importantly, fee tough aim, X last growth no We've in X% base it the years X years to by shareholders the last as would I consistent generated more the know, challenged quarter. generate and long And in fee and growth growth. met continued I to finish think to saw We term. We year. organic the deliver these long quarter the XXXX, evaluate last has term. base seen or average doubt X the more grower the over fourth any conviction aim way note organic to the to and reached been in through over marked market markets, we of momentum significant we base positive growth we've durable target

we've in stabilize fee I November This me, do momentum the seen organic can trend and base as cycle target that X% constructive. best X% we and market an towards generated rates and As December, organic growth rate, of since to suggests in fee more my that, things. growth I XXXX. X the is base annualized the is mentioned remarks, we some want flag to through our

trends in The over particularly industry Europe. industry I'd and ETF XX% flows first fee of of bigger had And is XX% market are is flow a think going part story in base that which to growth iShares a time. up hold Europe I growth of propelled the rates year-on-year. European it's European flagged taking that share. be high are almost organic really the well positioned, the lot long-term U.S. iShares to

think beginning. So the it's just I

in this organic with higher bolstering, overall illiquid fee fee GIP diversifying also combination We management our for alternatives base trajectory. growth and as growth potential see the

So I'll fixed give to income. it Rob on

Yes.

And $XX lot are lot wide we portfolios growing access blend ETFs leader with is developing So things, active it money I'll And is the as wrappers to preferred XX% of of order passive been client have the to vehicle market portfolios, add it flowing to Mike. business is global of going wealth, income come solutions. We're the at investments. waiting which a are you a as what ETF that's well. in a into in. fixed products. see market. move. model from in up $X plate in then just that's wrapper. to going lastly, X which the for That's leader we we're trillion investors' this to It's A move, have come money in we of have becoming together, move wake to And into about going accounts and ETF billion an sitting just the and a lot digital that's I from every to active salivating morning

for and I So our back really a fixed there's that. for wind the think runway income huge behind huge, right is

Bank. next of Deutsche Bedell comes from Your Brian question

another to of the ask just Maybe about infrastructure, this. angle

your fundraising think thoughts -- fund that that was for billion of I revenue. fund. outlook the you fee-related given Just have said million of maybe a your X $XX XXXX, you you over -- growth that it, just next products successful timing $XXX the And have a to around and the your the years, it in X of

the liquidity and are And soon investors do channel, in that? some fund democratized a then desire to you to features? retail the have for in market for retail -- just you that So now products infrastructure be that the also expect exceed create will or

there'll color. I'll additional Thanks. some I'm be start, then and sure

to markets. of that moves increase to that their made First moves inorganically private the drove client all, our alternatives our total in They're assets alternatives with very including bring of liquid continue that clients needs eFront. the much today BlackRock, acquisition and alternatives $XXX These to GIP. At client allocations here organically illiquid And us build the market-leading capabilities. billion, are credit. now we've

and excellent markets we funds. approximately private infrastructure vintages Our with momentum to market billion year in see in assets had of XXXX, so capital about $XXX track can on billion in to QX continue $XXX our respectively. alternatives $XX flows full the and we reached We've We're drivers with gross records, with equity solutions billion and across liquid fee-paying about strong of good our and private private Since private billion we've were building clients. main And raised fundraising. momentum $X have AUM. credit, and scale billion, $XX successor platform,

said, solutions, as our expect private drivers, where the be years X great and franchises. X to We next primary over we've equity infrastructure to credit growth I built

with We see BlackRock But I been continue sector of relationships global capital corporates, the think at this advisory together to its our lot That's often our bringing well to of year what public transformation. really technology industrial the BlackRock public as a best. around officially when key the capabilities moving public our as world drivers of long-term and sector private sovereigns through talked a durable and of Bayo has and some competitive do in Larry markets, that's these terrific are. work opportunities. built about with advantage have objectives,

lot. our new Larry opportunities. partners particularly we're with and So said, as our very and capital be by And both at optimistic I energized think they're Bayo a to traveling GIP. formation going

illiquid forward public-private partnerships for those help I I'm importantly, But unique to grow will grow So will alternatives us our really and innovative think, base and through opportunities us to assets. sessions, think that solutions corporates, looking bring how help I together.

raising cannot because stages a raising which in is about talk money final of of stages the that fund, GIP it. very the large we it's the in

by. in fundraising. But stand late it's the of stages So

very thing to up Bayo's new those team perfect to tapped before, mentioned can forward retirement investments structuring as teams we product democratize at it's good open looking for other to out wealth areas we that our get with because, working that the is of growth and together yet. the have this I'm long equity and not figure going The individual how duration, a product investor, Larry is good are upside, yield, such investor,

UBS. comes question Hawken Next from Brennan of

of on bit I in forecast an based the million is XXXX $XXX a curious, FRE deal more would deal question a what And consider just a capabilities to maybe this more then FRE Or all add roughly So of sort indicative that is GIP's little the more give Can on for desire you this to a about transformational? was here. XXXX? forward? understand. can one, where you is going continue granular, from its indication

Brennan, Martin. the Thanks, question. It's for

Larry Most transactions. transaction It's terms of see in clients that transformational feel a e-mails, me of consider the capabilities First and clients and that can our volume and impact is of screen is transformational transformation. this that its And unassailably I financial about of we firm. to earnings transformational. has The transformational. on can the it's it's all, definitely, suggests talked BlackRock to offer the we've it's what terms in transformational to

way as definitely terms we for transaction. as the objective to to in of as the on of terms illiquid let the platform capabilities of in is growth strong it financial XXXX in performance we've to being this paying with base the a comment AUM speak adds well expand growth. that But alternatives generated growing our cycle. growth priority I'm axes transformational terms a as impact, X% X measured well see as the to opportunities So and transformational will GIP really both and across has are able how continue great itself. organic fees in fee not through FRE infrastructure fronts, our on the always XXXX, those a going

a you add the active it. everyone, not people BGI small just could some see be our transaction. transformational cultures marriage not did and a acquired $X XX on tripled as what And years, hated ETFs iShares had as over BGI about They as it the remember, we we passive, of did think transaction, was technology. Let than saying Transformational deals large when Bayo number billion, $XXX billion understand assets assets, deals. did as not large its most and it's Reserve In of of did now if and was that more not in we years $X.X did and of infrastructure. me it's a see in bought terms trillion. the merits, past merge, in But earlier, First under can when

in this leading buying we to up assets very statement then analytics acquired portfolio the eFront, become the public we and Aperio. be And Aperio to this market playing of all I do markets made wrapped technology good where for are are platform, around and global both dovetail are our you And that markets And all of a the recently, view The analytics. just going is just is of movement. publics. in doing. out. And importantly, not now important, global all as privates and it's capital the needs going technology are acquired we XX% we since Just technology believe

is strong. markets a because years capital and our my is As be we believe to ecosystem. is, statement believe major of a to this and believe, will XX prepared this for the about beginnings and more is And this be at become entire of infrastructure very demand going the said of the And the it that we of next component lot the what of more private going type is, is infrastructure truly in I reconfirm infrastructure. as asset type need great really investment I remarks, the and Bayo of

of The next Davitt question from Research. comes Patrick Autonomous

risk funds idea money risk historical from past can show looks the not the start last like maybe data now. really more came will we rotate this see into positions. have been the Fed in pushing from we that guys for flows a can to year's deposits But $X what does while cycle You at And bank least trillion that, from see. it than assets

can't we still suggest bonds what maybe for you will are higher that really And deposits? cycle longer, win seeing that trillion and funds money $XX different? rates in can't this So if see are sitting be with both bank

Yes.

Rob it's So here.

it's is going investments. dependent answer be the So upon rates to alternative and

stops. as about market that's history when money funds market it I to cycle come think So start us then people stops, re-risk. out when saw the people first $XX rerisk shows billion of We there's volatility and and to

think of investments usually higher So benefit really in precision fee yield rerisk, when the they and I we people come look. The cycle feel end have rates, get the then for people what to matters. is to which then will and investments, more us will into they are type is

the think year, at especially in it. at bank look how there's we last I over money it, fourth But upon it's cycle and and look rates. you the and that the stop once dependent markets, but start at been a if stops between the blurring So quarter, all least, that's a deposits

will from TD our from last next be question Katz comes Your Bill Cowen.

Congrats on transaction. the

Sorry, little hazards a from today, home. earlier the phone cut out my working of

Q&A bit earlier point. a at little Maybe of Martin, perhaps So the I question little this for just on. a technical missed

intimate for fee as now how performance And incremental part you're just of how on performance the It economics [indiscernible] [indiscernible] sense Larry could is And margin, the would flow little give well time? when wondering, of margin? Can the rate economics. As this the to than sense out look so sort of going guidance you us forward, you greater returns sort looks say be do up does I as that new of the the into market of just keeping the you more as the fund that of of in that a part modest is the was fees give sort accretion model about be to XX% absolute like fees? back the has us GIP opportunity. then a would And then you of down they're to coming that shortly FRE Wonder that? kind I that on over put presume you as can what work? if you

your wasn't phone working. Thanks, Bill. I'm sorry,

you. Happy great Year. to New hear it's So from

said, we and to to post operating year be transaction the EPS accretive the first full in margin as we So expect modestly close.

base be organic to to it growth over expect and long-term We accretive asset fee time.

so the $XXX forma XXX% result we're transaction -- adding the be of are of post-tax transaction. structured The that GIP. margin FRE million we to crying of and of business adding pro We expect assets accretive is plus as a

management beyond perimeter. we of the base will where derive future transaction be the that's fees business. our the and in within all growth So estimates for the XXXX And FRE

the terms rates fee points the of you're are In to overall but rates, modeling in about terms thinking that alternatives, BlackRock how fee the of basis illiquid of relatively think out. XXX north comparable

that the deck funds funds the XX% existing that in interest are years, and growth funds, term, but I'm GIP carried the talk how employees website, X future BlackRock. GIP vintages on. given next we to to in noted would to owners and the will transaction And the to about teams of expect we trajectory Investor be come and in over years. earnings improvement posted not expect those fundraising performance GIP later you keeping is XXX% the As to XX% on the near for come going Relations for we'd the or not fees future fee-related in the

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

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

performance direct to clients. year and our evolving steadfast quarter fourth our and long-term serving a clients of is of full needs for Our commitment our result

to for and clients the Bayo changes ahead opportunity we are future to needs. and believe Everyone, GIP and ambitions of of as being clients serving with and our and large delivering it good of grow his acquisition markets value about shareholders. organizational never a hear helping and everyone a will incredibly having their client stronger and like grow opportunities could been Hopefully, the possible. firm have position growth have you. quarter partners much as for and Our enjoy be global very us. transformational capital try our meet in the our excited to we the and very team, Thank that accelerating we our and a

This concludes teleconference. today's

now may You disconnect.