BlackRock (BLK) Goldman Sachs 2024 U.S. Financial Services Conference summary

Organic growth and market outlook

• Achieved over $220 billion in Q3 flows, targeting 5% organic growth, with AUM at $11.5 trillion, up 26% year-on-year.

• iShares saw $250 billion in flows in the first nine months, with strong Q4 momentum expected.

• Positive client sentiment and modest rate cuts are expected to drive healthy investor risking in 2025.

• Historically, periods around elections and rate cuts have led to high single or low double-digit organic growth.

• GenAI and resilient economic conditions are seen as major market drivers.

Fixed income and portfolio allocation trends

• Cash remains sticky in portfolios due to ongoing uncertainty and higher terminal rates.

• Investors overweight in cash are underperforming benchmarks, fueling a shift toward equities and private markets.

• Fixed income assets reached $3 trillion, with 9% organic growth and strong ETF flows.

• Expectation of increased allocations to corporates and ETFs over government bonds and traditional active management.

• Private credit is anticipated to play a larger role in fixed income allocations.

Private markets strategy and acquisitions

• Inorganic growth is a core strategy, focusing on cultural fit, platform enrichment, and operational credibility.

• GIP acquisition added $116 billion AUM and is expected to contribute $1 billion in management fees in 2025.

• Integration of GIP is complete, with a strong pipeline for transactions and fundraising in 2025.

• HPS acquisition will scale private credit AUM to $220 billion, with significant revenue synergies from insurance and wealth channels.

• Plan to convert 10% of $700 billion insurance assets from core fixed income to private credit, tripling to quintupling fee rates.