BlackRock

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BlackRock, Inc.
TypePublic
Traded asNYSEBLK
S&P 500 Component
IndustryInvestment management
Founded1988
Headquarters40 East 52nd Street
New York, New York, USA
Area servedWorldwide
Key peopleLaurence Fink (Chairman & CEO)
Robert Kapito (Co-President)
Charles Hallac (Co-President)
ProductsAsset management
RevenueIncrease US$ 10.2 billion (2013)[1]
Net incomeIncrease US$ 2.932 billion (2013)
AUMIncrease US$ 4.59 trillion (2014)[2]
Total assetsIncrease US$ 219,873 million (2013)[3]
Total equityIncrease US$ 26,460 million (2013)
Employees11,500[2]
WebsiteBlackRock.com
 
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Not to be confused with Blackstone Group, a private equity and alternative investment firm. For other uses, see Black Rock.
BlackRock, Inc.
TypePublic
Traded asNYSEBLK
S&P 500 Component
IndustryInvestment management
Founded1988
Headquarters40 East 52nd Street
New York, New York, USA
Area servedWorldwide
Key peopleLaurence Fink (Chairman & CEO)
Robert Kapito (Co-President)
Charles Hallac (Co-President)
ProductsAsset management
RevenueIncrease US$ 10.2 billion (2013)[1]
Net incomeIncrease US$ 2.932 billion (2013)
AUMIncrease US$ 4.59 trillion (2014)[2]
Total assetsIncrease US$ 219,873 million (2013)[3]
Total equityIncrease US$ 26,460 million (2013)
Employees11,500[2]
WebsiteBlackRock.com

BlackRock, Inc. is a U.S.-headquartered multinational investment management corporation based in New York City. Founded in 1988, initially as a risk management and fixed income institutional asset manager, BlackRock became the world's largest asset manager as of 2010 after numerous acquisitions including Merrill Lynch Investment Managers, Quellos, State Street, and Barclays Global.[4] As of 2014, BlackRock has $4.59 trillion in assets under management.[2]

BlackRock is independently managed, with no single majority stockholder. The PNC Financial Services Group has a minority ownership stake in BlackRock with the remainder of stock owned by institutional and individual investors, including BlackRock employees. In addition, BlackRock partners with institutional investors such as sovereign wealth funds on strategic co-investment funds and capital raises.[5]

History[edit]

Origins[edit]

BlackRock was founded in 1988 by eight people including Larry Fink, Robert S. Kapito, Susan Wagner, Barbara Novick, Ben Golub, Hugh Frater, Ralph Schlosstein, and Keith Anderson to provide clients with asset management services from a risk management perspective. Initially, BlackRock was part of the The Blackstone Group L.P. and was called Blackstone Financial Management.

Fink, Kapito, Golub and Novick had worked together at First Boston, where Fink and his team were pioneers in the mortgage-backed securities market in the United States.

In 1992, BlackRock changed its name from Blackstone Financial Management. In 1995, BlackRock was bought by PNC Financial Services Group, while continuing to be managed independently. In 1998, PNC’s equity, liquidity, and mutual fund activities were merged into BlackRock. BlackRock went public in 1999 at $14 a share.[6]

1999–2009[edit]

BlackRock grew both organically[7] and by acquisition. In 2004, BlackRock acquired SSRM Holdings, Inc. from MetLife for $375 million in cash and stock.[8] Another acquisition from MetLife was the mutual-fund business State Street Research Management, in January 2005. In September 2006, BlackRock merged with Merrill Lynch Investment Managers (MLIM), halving PNC's ownership and giving Merrill Lynch a 49.5% stake in the company. In October 2007, BlackRock acquired the fund-of-funds business of Quellos Capital Management.[9] In April 2009, BlackRock hired 43 employees from R3 Capital Management, LLC and took control of the $1.5 billion fund.

The U.S. government contracted with BlackRock to help clean up after the financial meltdown of 2008. According to Vanity Fair, the financial establishment in Washington and on Wall Street believed BlackRock was the best choice for the job.[10]

In December 2009, the company acquired Barclays Global Investors (BGI) from Barclays. BGI was headquartered in San Francisco, with research and portfolio management teams in London, Sydney, Tokyo, Toronto, and other cities. BlackRock also acquired BGI's iShares funds.

2010 onwards[edit]

In 2010, Ralph Schlosstein, the CEO of Evercore Partners and a BlackRock founder, called BlackRock "the most influential financial institution in the world".[11] However, the Communist Party of China, which controls over $7 trillion in its provincial holdings alone,[12] holds the title of the largest asset management body.

On 1 April 2011, BlackRock (NYSE:BLK) replaced Genzyme (NASDAQ:GENZ) on the S&P 500 index.[13]

BlackRock Solutions[edit]

BlackRock Solutions, part of BlackRock, Inc., was retained by the Federal Reserve Bank of New York[when?] to manage and eventually liquidate the assets held in a newly formed Delaware limited liability company (LLC) to fund the purchase of residential mortgage-backed securities (RMBS) from the securities lending portfolio of several regulated U.S. insurance subsidiaries of AIG.[citation needed]

In 2000, BlackRock launched BlackRock Solutions to address risk management and business process challenges by combining risk analytics and investment systems with capital markets and business process expertise. BlackRock Solutions consists of three components including BlackRock Risk Management and Investment Platform Solutions, BlackRock Financial Markets Advisory, and BlackRock Client Solutions.[citation needed]

Aladdin is BlackRock’s electronic in-house investment management platform. As of 2013, the platform had nearly 2,000 employees. Aladdin supports the investment management process, including risk reporting, analytics, portfolio management, trade execution, and operation processing.[14] It seeks not only to forecast individual asset movements but measure how correlated those movements are, and to what effect.[14] Aladdin keeps track of 30,000 investment portfolios, including BlackRock's own along with those of competitors, banks, pension funds and insurers. According to The Economist, the platform monitors almost 7 percent of the world’s $225 trillion of financial assets.[14]

Organization[edit]

BlackRock is a global firm with 21 investment centers, 70 offices in 30 countries and clients in 100 countries.[citation needed]

Key people[edit]

Notes[edit]

  1. ^ "BlackRock Reports Quarterly EPS of $4.86 or $4.92 as adjusted". 
  2. ^ a b c " "BlackRock Results Top Expectations". July 16, 2014. Retrieved July 16, 2014. 
  3. ^ http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjIyOTI4fENoaWxkSUQ9LTF8VHlwZT0z&t=1
  4. ^ Andrews, Suzanna. "Larry Fink’s $12 Trillion Shadow". Vanity Fair. Retrieved 2013-04-20. 
  5. ^ "China Investment Corp and Blackrock Back China Fund". Sovereign Wealth Fund Institute. 2012-08-16. 
  6. ^ "Corporate History". Retrieved 2014-03-22. 
  7. ^ "An Amazing Woman". pollbudservice.pl/public/blogs. 2008-07-22. Retrieved 2008-07-22. 
  8. ^ "BlackRock Acquiring State Street Research from MetLife". 
  9. ^ "BlackRock to Acquire Fund of Funds Business from Quellos Group, LLC". 2007-06-26.  BlackRock, Inc.
  10. ^ Andrews, Suzanna. Larry Fink’s $12 Trillion Shadow, Vanity Fair, April 2010: "There is little doubt among the financial establishment in Washington and on Wall Street that BlackRock was the best choice to handle the government’s problems."
  11. ^ Kolhatkar, Sheelah (December 9, 2010). "Fink Builds BlackRock Powerhouse Without Goldman Sachs Backlash". Bloomberg. Retrieved April 20, 2013. 
  12. ^ Bloomberg News, May 05, 2014
  13. ^ "BlackRock to join S&P 500 index, replacing Genzyme". Bloomberg Businessweek. 2011-03-29.  Retrieved January 23, 2012.
  14. ^ a b c Briefing: BlackRock - The Monolith And The Markets, The Economist, December 7, 2013, pp. 24-26.

External links[edit]