BlackRock (BLK) 11 Oct 242024 Q3 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.

Third 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. Meade. Instructions] [Operator

begin Mr. Meade, you. your you Thank may conference.

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

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

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

Martin. that, turn over With I'll to it

XXXX. morning, pleasure for Thanks, present Chris. my It's everyone. Good quarter to of results the third

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

sounded improving growth trajectory and organic second to in BlackRock year, release on our the optimism primarily call, as-adjusted be earnings both best results about Our the client delivered discloses in the improving quarter, financial sentiment growth. and surged financial growth we results. I'll previous focusing history. our as-adjusted steadily of results. On organic half and earnings spoke the We our third of some our GAAP in and

margin base annualized our X in XXX $XXX billion X% of our our of income. basis net We generated levels generated ever. growth, points We organic net highest by delivered operating highest quarter expanded years. We record inflows, year-over-year. We flows quarterly fee and quarter revenue

private in size clients on markets. strong and and move to we turn BlackRock execute as accelerating public to is a growth Organic into pipeline

third delivered to are year-end. poised accelerate growth Aladdin, Our the structural outsourcing, and whole growers structural quarter growers into all iShares, strong portfolio

ETFs, than the income upwards growth. XX% with income approximately industry global mid-teens in higher iShares. cheaply growing sees with its And Aladdin third nearly key the billion stand $XXX to on $X with and Aladdin, quarter growth, now iShares QX. momentum iShares' of over total Fixed at at ETF of fixed logs target year-end and XX% built flows excellent organic historically with annual trillion, XX% low through flows assets consistent leads long-term clients. in wins ACV XXXX. our

Fixed October of across We power fixed the across fees. on the of private BlackRock, portfolio. delivering Partners. for rate On AUM together. clients we over BlackRock. Private central continued remains of triples ETFs and The $XX Fixed net private Finally, and more infrastructure normalization a BlackRock whole markets serve sustained strategic run bond income and growth world-class organic delivered X, our priority platform of closed a the income We're billion already for inflows funds, are with believe bank income. will GIP doubles accounts. support management markets institutional deeply the inflows. capabilities acquisition compelling across to Global path Infrastructure combination markets seeing opportunity

manages will in funds. And has almost on what's bigger about partnership BlackRock increased of more an as $XXX of long managed and and across wealth important we're with revolutionize solution markets. portfolio efficient for outcomes done with become capital observed wealth exposure with portfolios portfolios It aims separately just information bringing model managers to synergies than model realize proof private the than building and These more it's markets Our to support portfolio markets clients. from access of innovation, for the benefit private believe growth we potential markets, first of together. We're as managers. wealth capital would billion as even been improve private create the We millions and the investment to to infrastructure the households for enormous scale access itself. evergreen Microsoft point AI can MGX. and to assets Group Partners accounts

exciting this accelerating is and Preqin analytics of our data private for acquisition and clients. markets planned BlackRock journey Our

also to We're mandates achieve the swiftly cycles. continue more Our and in fee multiple mix resilience through BlackRock's result model We growth growth, through the for to unique long Successful higher like target focus our our X% our shareholders. We opportunities, expansion term. portfolios. BlackRock. client goals world-class portfolio over private trillion, building markets, will firm or with ended and building execution trillion access earnings moving clients trust, exceed areas quarter base organic expertise diversification to with platform units and of our translate higher also to clients of secular aggressively organic on and remains and XX.X near market and believe to this growth whole service. revenue delivering these durable to position greater technology, should AUM We're $XX.X in towards

Our quarter, to third inflows quarter of in be in opportunity billion annualized and organic technology asset we net $XXX line generated growth. that broad, asset of seasonally maintain management the into business tends fourth representing sight the new and growth. BlackRock should fuel set strongest organic total global X% of a mandates

increased Third liquid of our billion was tax base months $X.X higher rate a market XX Earnings alpha X%, to year generation reflecting share and year-over-year. strategies. of Operating per in growth, up impact average X% of alternative by $X.X the fee the compared a driven was income movements organic XX% ago. XX% $XX.XX higher last quarter of revenue on billion year-over-year, AUM over

minority the primarily for unhedged seed included driven gains investments. $XXX a to results capital by million of net quarter investment gains, linked and Nonoperating investment

the of XX%. of benefits, rate by included expense. $XX tax impacted third was million the discrete The million quarter was [ quarter as-adjusted million discrete prior Our $XXX year (sic) third XXXX tax $XXX of quarter approximately for while ]

XX% discrete estimate effective the in The for tax of reasonable of is may to legislation. nonrecurring run that remainder rate projected XXXX. tax actual because continue items a changes tax potential We differ or rate or

basis organic by and annualized lending a securities closing second of lower preferences average exposures fee revenue compared Sequentially, lending Third billion quarter $X $XX to points fee-paying positive securities the movements X/XX lower equivalent revenue base fee the approximately X%. This effective to of and base beta AUM client was securities fee for On basis, partially and exchange on X% of client lower increased was reflecting fee AUM the securities market outperformance and added offset GIP lending base rate lending. The lower impact due billion and of markets AUM was fee revenue. foreign year-over-year, count billion U.S. fee up and growth, an relative equity U.S. quarter. of and on $XXX X. day of lower October of our

contribute revenue are basis typically million fee market assets further of BlackRock's to add points. private primarily that over quarter the We in long-dated, mix. of overall fees expect XXXX. levels They earnings add GIP XXX diversify approximately fourth and management $XXX GIP to which portfolios our The nonredeemable business, competitive

an a hedge of these for million in fees a X% strong positively impact from Quarterly assets year increased quarter. was expect fund significantly effective impact from third prior renewals large revenue to last quarter of private on-premises X alpha ago, over down We BlackRock's months technology primarily lock fee basis overall point. Performance the clients. revenue X.X compared reflecting with year $XXX the eFront services annual license a market ago generation rate several due to to by full year to XX the

range its or our X%, services for U.S. year-over-year of demand selected approximately large Aladdin across Annual the was classes. to technology client quarter, asset sustained asset unify management would reflecting technology Aladdin contract have value, by Sequentially, increased technology a driven this ACV, go-lives. services Excluding impact, offerings. In increased market platform successful full X% manager year-over-year. third revenue XX% up investment technology public revenue

a and Our client new client ACV mandates. of results include the impact announcement number of this other

Our their direct new highly line. results recognize efficiency. line to operating clients also needs. technology. It unlocking enables tailored Clients as impact positive power scale capabilities the drive Aladdin backbone provides top meet highlight scalable clients to growth Aladdin and a to that's to the business of a for bottom unifying while a

and professional G&A a was compensation X% year-over-year, and income. X% expense expense up and higher AUM. was XX% timing fees the fund performance primarily higher increased primarily operating year-over-year, and was compensation, benefit G&A year driven of Total by incentive average sales, expense account higher expense direct Employee services technology Sales, last higher and up by reflecting result higher higher expense and result incentive to due a as compensation as primarily ETF expense. to asset X% driven fund X% and increased sequentially, X% year-over-year higher ago account Direct expense. of year of compared expense. spend asset a year-over-year,

reflecting markets ago, fee margin was from year Our significantly of on fees higher impact XXX organic base of performance the a as-adjusted operating growth. positive basis up and points XX.X% revenue,

This greater approach operating As organic cost our growth, yielding markets executed expenses growth aligning and profitable operating scale. fixed and on rubric, controllable improve, adding more leverage. to resilience financial driving through our variabilization of we've margin and is expense

in excluding present, we Preqin our Infrastructure low the to BlackRock more be the At growth we in to of levels the the and of consistent of with a the of outlook, impact would GIP our headcount seasonal and full increase communicated XXXX, and guidance In to following flat line the execution transaction. Inclusive QX in spend would G&A to also present, new investment expect acquisition of expense marketing we G&A mid-single-digit with in also welcomed a Global costs. technology increase. related percentage G&A expect broadly of previously end to January mid-single-digit percentage to line QX approximately transaction In at impact, planned increases range expect we'd expect with GIP and expense. XXXX reflect at year colleagues core XXX close core this be low to would core high spend. We Partners, closer

delivered we for is X still the $XXX the capital fourth our stock, quarter, million based strategy initiatives consistent we At to X.X investments make in we operational accelerate shareholders expected scale share in transaction, least the closing to deferred see third the repurchasing strategic period. inorganic either subject shares on management our present, year worth quarter. of growth GIP anticipate be to opportunity dividends in excess and shares or and at guidance. X of of based a our issued remains, subject million transaction, may of other certain or common combination spending milestones. We first, to At $XXX and lockup initiatives. At and to repurchased performance return the conditions, BlackRock capital and then cash Approximately the previous years of and XX% shares plans million to is support to we efficiency achievement where invest with drive on Our market repurchases. through million approximately times, issued growth X-year shares, of and common for business, to approximately total in strategic our consideration a the an of

the and billion, developed ETPs approvals we market client customary $XX of and to net and present, equities. $X in type, other $XXX the had our continue third $XX with net active net inflows quarter. allocations third as to At with third the $XX efficiently regulatory of expect Momentum clients quarter. equity billion Fixed of and portfolio in billion acquisition and $XX year-end grow raised well index, BlackRock, to Preqin positive U.S. with ETFs close tilts and subject inflows of XXXX, BlackRock's income planned were of billion institutional million of inflows tactical regions. and continue their led franchise our net $XX inflows billion inflows in net diversified consolidate cryptocurrency quarter. Institutional type, our closing inflows around to and portfolios respectively. international third core billion more adjusted continue to towards product added conditions. BlackRock's Precision clients and in ETFs across to quarter build net

in active benefited multi-asset. Flows fixed $XX franchise large of institutional inflows and funding income saw several from of outsourcing primarily mandates. insurance billion Our net pension the and

large flows positive equity $XX active also into yield, franchises. Demand strategies. Institutional primarily infrastructure quarter and in $X.X high impact for U.S. Fixed income bond, inflows and $X reflected of the driven into were total rebalancing successful saw infrastructure the asset decisions. private wins strength our inflows index and market across illiquid LifePath in allocation credit. funds. private third positive billion Aperio equity, income Date flows reflected by and net and over continued municipal from of billion, $X of Target and client-specific of continued net net mandate also alternative We realizations strategies were return private mutual inflows strategies. led Retail inflows fixed offerings systematic unconstrained our Net billion of and inflows billion with by

the our mandates. scaled management saw Clients of is multiple funds of an excellent beyond. the policy. net periods of and in cycles and recognize ahead our investor has BlackRock. BlackRock both the delivered driven and to central one moving election BlackRock's for Finally, the into historically delivered clients strongest to client also we're in U.S. grow this $XX inflows bank growth benefits with and inflows the history results in of cash outsized and in re-risking, position government The around of organic year international by in quarterly billion new and quarter offerings, and large quarter, integrated included strong fourth of prime been end inflows. cash our changes historically sizable contributing

So connected we deepen to and we're with our to our clients, staying significant share. opportunity see relationships grow

BlackRock, and believe growth, sustained multiple over expansion in result we differentiated to will turn and increasingly earnings market-leading this clients leverage organic time. As operating

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

Global on week, fall. morning, BlackRock And same Board Hopefully, anniversary colleagues welcome of great of and with We've Partners. We're look public milestones happened has good we excited enjoyed our everyone joining this forward Infrastructure Raj good everyone. we Bayo We BlackRock GIP our closed the of XXth Bayo X to day: Directors and the becoming connectivity company, and the to celebrated Last Martin, fun acquisition and officially to a incredibly had the founding quarter. and across partners. you, summer really a our family. all we a GIP Thank

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inflows. money industry its performance, money quarter, own AI globalization markets. meet our new investors makes in-depth rapid for public it trends unprecedented in including are market funds needs, exceptionally is we Our see continue the return include in large clients. Many private well technology of for the opportunities, But knowledge advancements technology way in have and the across investors build hitting of and preferred billion of their that positioned to new partner local need which to BlackRock's cash into assets had increasingly us great front long-term records institutional and to as investment and our $XX BlackRock industry the investors position, of nuances $X market and and holdings, cash have will of make net infrastructure. this. re-risk a These structural number trillion across of rewiring

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of are than to serve years growth upholding XX being today, years for clients optimistic -- and I clients serving XX up public welcome our do to it come. I've deliver a colleagues a with our our positioned to we for positioning commitment for GIP. Operator, more new to our We as firm. the never our all the employees years our firm I clients and in from questions. of And better want from culture shareholders even to and in felt open their after BlackRock and let's excellence. thank being again, ever

go [Operator Siegenthaler Instructions] Bank of Craig first We'll America. from to

already protected expect the I question is expect election? And strong activity or third broad-based the scale? So trajectory. might long-term your be your business, my and in quarter, outflows funded any win the conversations if your know of somewhat flow the client market on current pipeline, net post we you year, acceleration given institutional the flow given that strengthen pretty in and strong stay do your into From next re-risking continue which they're institutional net should money

question. the for Craig, Thanks,

flows, funds, business breadth with Date. winning The fixed equity, new So Target you on great $XXX inflows we measures U.S. strong, business, our just XXXX. talked the QX active of of and any said, Larry billion flows track. across systematic really LifePath showed about No question, active as positive mutual share clients. healthy income are the in Craig, our since resilience shows long-term very we're they all

XX had quarters. I of in flows active think positive XX we've

to a continue strong QX higher than still very and performance, have ahead. XX% have full strong seasonally we year this So QX, we just flow

a for BlackRock So we the affirmation I feel in trajectory meaningful think always focused growth. like the cycle, with things period. in It's very clients. And has we on where asset that rerisking a outperformer right healthy been on for an are us we're

organic asset upside growth growth was we election bank if at was over previous very well a So long-term you going if central 'XX, base fee 'XX, or and back in outsized we our targets. BlackRock, as organic strong look as that had saw to cycles XXXX, capture action, that

is and clients. And flows with market, to is the business money billion the this I have durable. our The trajectory has that that good. for markets, been lining see come respect The largely very we It's our strong been that's think, with there, $XX think institutional. up we year. So world of very been then

of for I bigger to years think, business fund is is X well, income Cash at of a which been has market that the our sort as was fixed nearly ago. Craig, we billion flow when portfolios, than at look meaningful today. client we're $XXX but It's it return part XX% good money seeing it, trajectory.

and the just opportunity activity I would us flows, for the will better capital one -- thing us for and opportunities. add here that a and world, other as global the in backdrop markets fantastic. more more player economic our And for in larger positioning allow become is places the the exciting is

Stanley. next to We'll with Morgan Michael Cyprys go

see in to great the strong quarter meaningful the quarter. here. And operating well leverage the as on Congratulations

you're the in the drive you next spend expenses? curious to journey of you what of us levers evolving? pacing on your variabilizing How update Maybe along And here 'XX? just where into the margin XX are to is So are months? XX how that some investment can

Martin. Mike. appreciate. Thanks, I It's

also just creation to record just It's margins management shareholder business term. that to got about and of at organic drive profitable while about execute long the our investing We've contextually, it's consistent right, over for a expanding growth in differentiated scale not and industry-leading a leverage track operating approach strong So the on strategy. and BlackRock growth profitability. capital to growth growth, generate to value is industry-leading

making So prudent cost dubbed investments business. flexibility our more lens and size our consistent headcount basis there. variabilizing and while 'XX, our We we're growth rubric, the looking in and importantly, since the financial them. And We aiming income industry-leading BlackRock while with can, this managing We're a got mentioned. in say they're growth to which coming flat. really rose we of delivering put scale, up scale I track continued cost our indicators, We've record is a We've being disciplined our in very and from investments comes margin on operating especially expenses we've of line And more results. base end made XX%. to organic lot potential. in most And progress margins expansion through generate in through fixed of operating year-over-year, a $X technology. management points improving the trillion, generated of are under assets XXX broadly investments I'd where

So margin we're is expansion. and in which our scale delivering productivity, the benefits of showing

to meaningfully are the margin down. term. drive growth just beta, or the to markets us continue market Market to I'd both the see that that's positive intermediate over movements last the levers movements. reasonably up thing move highest margin for to continue our for from we item, is conditions say major We And to believe markets that expansion. And near when continue in footprinting there automation technology,

So we organic out. we we've can growth expansion deliver that financial using to margin to believe accelerate rubric invest and this laid continue

Sachs. next Going Alex Blostein to Goldman with

you margin us flow the the for if GIP, that maybe is you dynamics XXXX? into know out I the the think, of kind financial I you topics, management quarter. of about also, bit of on million, in how are things some see on little well to operating what with talk markets. gate elements. on And working you the fourth GIP them guys Martin, Question just of helpful maybe evolving could with as the some that private side? as just on of well. And Can There's some legacy What couple in the what business are $XXX are a a that remind guys fund together? talked but mark-to-market a fee starting get you about to you of

Alex. Thanks,

welcome colleagues, of to closing XXX John, Bayo, over it's in the just really new BlackRock's So history. great the Raj, everybody. GIP, welcome leadership a to excited milestone Michael, team, We're

The that consultants partners Our excited. are excited. excited. clients The corporate we've with working been are are

to this has And on reception, platform. the eager as positive. new Larry been really we're mentioned, partner overwhelmingly So

revenue formation the across capital across synergies us, -- mentioned. I'd at unlock origination, to a the substantial story. strong at that especially innovation growth fundraising capabilities. platform momentum growth around seeing is excellent expanding this working This and We're about ambitions For in say, fund AI BlackRock is have, Larry and GIP, really platform for We're scale.

in think million on AUM. fourth in come GIP quarter. AUM, client consolidating $XXX we're transaction, the north about of to remarks, earlier billion at margins. rate million $XXX adding, of expect as at sort We're management management doubling we earnings my AUM run fees, in fee-paying markets of percent mentioned call, call, of we the -- BlackRock the of I GIP the XX-ish said $XX private in $XXX on fees As annualized billion

GIP. in So of I'd an think FRE model XXXX $X of XX% of margin of sort billion we about fees north terms with when

We'll go Jefferies. next Dan Fannon with to

Sorry, can me? you hear

Yes, now, we Dan. can

you could you M&A? as you team recent discuss opportunity and for but your additional constraints I financially, integrate what deals a more was And the transactions? hoping importantly, have these management maximize with to really the have appetite appropriately

much so for Thanks question. the

of I to This we're a last As GIP And I work clients realize it's really markets the some accelerant BlackRock. excited, mentioned transaction. are it's just take our in well and But about for said, is planned as the our capabilities. private major contributor I so meaningful integrate and financial synergies this to going Preqin. question, in a think

growth, we're and clients is a business, employees. We've on and very So focused focused integrating and Preqin, and a always making GIP integration inorganic of our quarter, to for and on organic delivering right target order we now, our see momentum. investments growth to organic and we're thought inorganic experience in our we organic closing but great we've in need organic have hit growth we this base fee meet excellent X% Look that tool targets. M&A optimize at don't

capital for be long-term we'll growth. be and long-term shareholders. very clients position. our always with continue We're selective have to in rigorous inorganic that to consistent prudent and those with opportunities benefit And evaluate alignment and we'll strategy and clear our and culture, possibilities our financial So entertain that our with going approach, criteria have the organic

capabilities great here, Dan. have We

So infrastructure we've platform. across now, billion got $XXX

platform. have an billion $XX private credit We

in our in fixed insurance clients. [indiscernible] to organic. We have We're the world private largest inorganically with income opportunity the manager a companies core for with huge insurance grow credit

assets We general have We insurance our account opportunity organic largest with insurance the company manage grow them. to of billion for $XXX clients.

think credit with capabilities you we're if $XXX strategies, with into clients CIOs about So $XX can into with the if private integrate of billion that that we we existing flip the our -- flip we can just conversations billion private today. that's of sitting XX% capabilities X credit if the having GA, to opportunity have

Evercore. with Schorr Glenn to next go We'll

with too. huge and all impressed think putting the growth you broad margins, I up we're that pretty So keep

during just have I growth expansion mentioned question, conversation, too. high-level So in to want the twice earnings strong word once think part you everything. a growth equation and or be you multiple I the And needs the of

as actually base curious growth have layer you in that. I'm the You and margins. with bring big we this X% these quarter. just your EPS along why appreciate expect to I consistently initiatives Should it, too. growth fee they targets hit earnings

much for question, Thanks the so Glenn.

financial and drive drive growth. we we I on think differentiated should expansion think We through. X% industry driving to through continue organic you organic growth be execute double-digit very able margin this to out, as And said, meeting if coming the leverage. growth, I and cycle, operating you organic rubric, growth, on driving margins much EPS to able are focused laid targets X% see our we're leading So those results

that's in expense think we that year the rate I quarter, some of of our in driver versus XX% in we the this effective the was tax I million that mentioned here the discrete $XXX lighter between main the $XX And last discretes. was had of quarter quarter. had million from that EPS benefit

to Bank. Brian Bedell next with Deutsche go We'll

now the long different terms on either that a stable of back of several towards lower markets, future products maybe going organic X.X organic X% rate. next to been Congrats iShares, of higher the with X years to to your better to you've in iShares, growth iSeries rate quarter. past. move basis the fee due versus a the private Obviously, all that for to the now fee and core acquisition I this time than rate's fee course, the fee the base up GIP composition fee in even seen? up in that's you and obviously you in sequentially have just And also sorry. mandates towards a that Do potential versus the more point. in tilted core be bringing the Maybe growth know great some feel of angle -- But seems the been pressure the the be on on the of you've maybe mix or

the So growth touch bottom just rate as organic well portfolios on that growth you do in if fee about terms potential can the feel line of maybe potential? is, model you better And partnership there.

Absolutely. the Thanks so much question. for

fee So base in growth quarter. we generated X% annualized the organic

fee annualized at our margin. momentum to just organic that. revenues growing rates income expanding rate operating growth was XX% in that Continue great call AUM equities and growth. base mainly fee Average due double-digit about organic of would fee growth, our higher you community, and in than analyst U.S. divergent beta. lower We're growth relative base X% see outperformance and excited what all, So or was we're to

quarter the higher AUM. X% spot of than trillion So about ended AUM $XX.X average

stock backward-looking and fee the a lower effective a macro the and points rate, manage fields by basically new organic primarily X/XX that rate. It's beta and affected by of and on net of annualized approximately On new of flows rate of rate. fee the FX And also on sequentially. More net assets so we AUM, fee it's basis the output growth. our mix was our the fee just

to, most possible. international But strong equities, focused driver I for an the We're primarily to the that focused output. AUM to public we than do rate with client equities. Fee been those of markets, billion environments, going of private these from we're us, base on billion platform. client U.S. strategy. organic portfolio. at or fee way point We're $XXX grown call fee relatively it's our in across segment, the focused on And that's grabbing equity equities, whole on It's client We're which international they've And or needs not which is, growth lower lower U.S. tends trends EM fee the to technology. you're it, a in as more basis the a efficient see, go GIP faster our grow fields meeting AUM. $XXX of the of over recent rate and think so on rate on growth and driving new we also periods, business, are driver occur markets

see to organic base rates As our would revenue. private fee we time. leverage to growth and leverage to expect we see grow to fee positive We'd markets expect positive over average business,

X.X And Going fee GIP as expected into our be rate the entry consolidation about flat. rate QX, is ex-GIP, we'd to of to lift the noted, full the I expect into to portfolios by basis business X point.

is the the to term, business our fee on markets to see positive rate. in bigger So private mix, illiquids longer as leverage contributor a in that we have we would expect

We'll TD go Cowen. next to Katz Bill with

anniversary. Happy

I to so remember think beginning, I there was say. at the Indeed, was yesterday. meeting I it that like

little statement the a if you. intrigued by opportunity. revolutionizing wealth you maybe was bit. was very I could that a wondering question for unpack your So management I about

thinking the mentioned be as and date. year? wondering so you the any look think portfolio sense magnitude new should of little better your you we the we and just on strategy expand get than I if everything the bit, evergreen go-to-market to just a And about that could be maybe we could side opportunity thinking the whole into a opportunity

Thanks, much. Very Bill, question. very much appreciate the

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

build managers Our wealth to exposures. that blend aim long-term portfolios help is markets public private and

public-private. wealth we've private low talked in is building very enabled, investor several for allocation digits. days remains you digitally early. I managers, go portfolio the the it's the about think, think still this I last if single And back to market, to markets we've which future is of Retail still had,

we liquid exposures. our U.K. the a billion in retail and on out States. a to $XX lot here LTAP the and credit United assets franchise great capabilities We've here systematic, LTIP We've us got evergreen bringing commodity across success alts funds and of in in retirement here, alternatives. in the Europe of retail interval been had restructures. over leading multi-strategy, merger Just for established have We've arb, through building

strategies have interval We a CREDX. fund, credit

and GeoWealth, models have. we for I'd into it's iCapital, with the aspiration It's be Envestnet, think as into a would for integrate partnerships we is said, significant which competitive of credit be $X this with and consistently. Partners is semi-liquid have independent well at the strong of entered SMAs. nontraded Case wealth products over to combined a Vestmark. most BDEBT, [ heart the offshore It's with you with unlock term, models we've ], billion the over have that placed and we be BDC, are to BDEBT us. But grower That RIAs, venture broker-dealers, can But we We advantage feel say with managed our our $XXX billion Group. with longer part today.

do portfolios in of to same that model been terms is same model we've in with the do portfolio. to been active able that goal fund ETF we've and seamless that Our to able -- public-private mutual the way make in way

have we're we that, lot excited do the about but work So opportunity. a on more to

Bill, let me add answer. more to that

be when so of believed it's we acquired and heavily in said ETFs Even public expanding and of -- XXXX, when trillion would become seeing going private, on we way. the they're capital new be we are market, in we continue become be surprise will at ETFs that. What and liquidity been As of activity that going people, that we markets, many of to looking income, BGI the to to between certainly so in the of fixed to public that's measurements privates, instrument in and and the much going blending to the that $X are Institutional trading crossed a blend. in in to now going domain. private are clients and

in way And say not to markets itself. at not alternatives. part they're They're same the we're going look like marketplace we're going of to the private so -- just

it's the to what we movement And one making going the at opportunities reality to and too. that we to we're for so force the public of markets ubiquitous the believe together. But acquire of private how data reasons And happen, why look become of privates, with in that in build ETFs accelerate and more many that became assessments. and Preqin, of were Aladdin acceleration of the so as analytics. Preqin, analytics and driving will and driven and if of of liquidity liquidity of And analytics that combining public just risk we platform markets, will and the risk happen as the going idea if to liquidity the from blending blending a transparency public like the now, is the believe data driver reality, be more into making privates the going could this data we will could we're privates, markets of have we private through that eFront,

have So better driving will data will when when we going -- retail our exposures, is these component analytics, forward. major when you think about of accelerate a private strategy and transparency, platforms that more indexing, that type only be it of we

go Barclays. Budish We'll Ben next with to

new And ambitions key you sort to or as see the and to could maybe do wondering, ETF that the you next some it do? BlackRock posture for seems It a to the ask one your like who's a custody business beyond going change little have time industry. we're opportunities what be and to take assets more about digital see new I'm things to rules from just up Washington going this to the changed Wanted way in another, of of bit. President unlock while in could friendly year some regulations, other

more sure not with of going become I'm worldwide. President to of and institutions reality a first, do we're or believe make of assets, Conversations believe the Well, class other itself, asset I allocation a would more there I utilization to type gold. difference. of either candidate in be. assets worldwide, other having conversations they we about Bitcoin alternative asset about commodities like an mean, should how an think what should digital is it is are

of be of Two, Ethereum as of And blockchain will so role the form can a application grow I dramatically. think the investment this expanded.

these function acceptability, more of can -- more more truly less a regulation. regulation don't then expanded. And analytics believe more it I regulation, assets, we if related create be So to transparency, will it's of

the acceptance out question and will as think digital currency then India overlay the see it build success become that what we the to digital items to like reasons. you than their very it's the and we're occurred, Bitcoin you years we That's the regulation. a and slow. seeing to market. blockchains we witnessing own the market analytics, the does and the off is, that's high-yield when do liquidity, and other discussion. no play? ago started their better believe do different all let's we And of these through more role And And we dollar? very better digitizing in you mortgage market these very going in the do through very is for when itself. under country, digitization applicability analytics of better role and data And own see see AI But be like, and I of of of broadening data different are built in a a does big how built technology assets. And analytics data, then the and of in these I we're mentioned, we additive. having function -- say, -- analytics, and broadening of different as process, going a transparency Brazil But of started But that when question the we'll markets a then what that. as countries every to better How other the in a related this asset country various at truly market, and But that going But than years each ago then broadening -- what will that of and we're different currency. believe witness I Bitcoin look believe then occur.

UBS. Brennan to go Hawken with next We'll

activity income have the all regulatory bond the issues Curious institutional recently manager. some whether you any fixed on a in at side? There's changes seen RFP been large

you're what the seeing on the market in that. kind So of curious about there of back

or -- look announced billion this a not is quarter, a client one marketplace. one to want in you fund. if pension manager versus another won with about $XX big, large client to the another happening uncommon changes it don't There we mandate at So talk from we our are see what's manager. I announcement or

talks question no about lot. a is motion. this money is There Kapito Rob in

a large mandates We seeing be to -- institutional now. are an for very this. RFP are that that up there's right There's going

different. is any see the I money every Obviously, with from as consistently is at so every are and There And And and but opportunities just as it's don't opportunity. this occurs some I that away quarter. topic the seeing you brought leave around issues business I'll that. blocks this that are large this press. it at think that in we more with around, mandates OCIO occurring they're are one motion -- of regularity look not in important more occur moving But up, there uncommon to thing quarter. And note large

like turn At I'd to call Fink the any for back Larry closing this session. time, Q&A today's additional to does this conclude remarks. And or

thank to these your all this of joining continued want for I operator. you BlackRock morning interest you, Thank us in over years. and last XX

are that over analytics many, the we've network of by and our Our third quarter and data differentiated technology importantly, global all results built our years. of integrated we've imagination because are created, possible that many relationships

of never shareholders, of Preqin long in We same we're the we our for to believe Aperio, of history as forward around good the BGI, and ], ahead. clients, And a differentiated you, eFront. thing growth successful it's and been of And on of position year-end. strong will we expect have Malin And coming [ create a look integration and has a our our working believe we years close for I whether GIP better. integration now closing integration the delivering I performance integration,

nice quarter. and have Everybody, positive Bye-bye. a thank you, Thank and you.

today's teleconference. concludes This

disconnect. may now You