![]() The group promised to keep increasing revenue by 5 per cent annually with aggressive targets for its Aladdin technology business and its relatively small but high-margin private markets business. Our willingness to disrupt ourselves and the industry . . . created the foundation for what BlackRock is today and will drive our growth into the future.”įink and other executives made no mention of the sustained criticism BlackRock has received from “anti-woke” Republican politicians in the US, save for a reiteration of the financial opportunities it sees from investing in the energy transition. “BlackRock has never been afraid to make big bets. “We are reimagining our business model,” Fink said. Read also: Naira closes at N664/$ as Nigeria attempts fx unification Meanwhile, Fink said BlackRock, which is already the world’s largest money manager, continues to look for acquisitions that could extend its global footprint, expand its technology offering and broaden its presence in private markets. Noting that he is a fan of dystopian movies, Fink said that the $9tn money manager would bring a “healthy paranoia” and “healthy enthusiasm” to their investments in the technology. It may be the technology that can bring down the inflation.”įink has repeatedly warned that high inflation could force the US Federal Reserve to resume raising interest rates later this year. AI has the huge potential to increase productivity, and transform margins across sectors. Speaking at BlackRock’s investor day, Fink said: “The collapse of productivity has been a central issue in the global economy. "The most important thing, I will assure you, is a process of testing ourselves and really ask ourselves how should we evolve our business model to best serve our clients," he said.BlackRock founder Larry Fink has predicted that “transformative opportunities” in artificial intelligence could solve the productivity crisis he blames for persistently high inflation. Shares in BlackRock were up nearly 2% following BlackRock's executives comments and expectations that a Federal Reserve pause on rate hikes will benefit asset managers.įink talked about potential inorganic growth opportunities for the firm that would be “transformational,” a concept he had already expressed in April, adding possible areas to expand the firm's footprint could include data, information, technology, or could be related to distribution. Last year, the private markets area posted $1 billion in revenues. The firm manages $320 billion in alternative assets, such as real estate, private credit and infrastructure. "We're firm believers we'll double our revenues in next five years," he said. Private markets will play an important role in BlackRock's growth in the future, according to Edwin Conway, global head of equity private market, as investors will seek diversification beyond debt and equities. Still, the firm sees its market share in fee revenue reach 3.1% from 2.8%. As a result, succession at BlackRock takes on an added significance," said Cathy Seifert, vice-president at research firm CFRA.īlackRock's top executives said the company is keeping an eye on acquisitions and targets a 5% organic base fee revenue growth between 2023-2027, the same pace it grew between 20. "BlackRock is at a bit of a strategic inflection point as it seeks to ramp up growth and meet client needs. Now, investors and analysts have begun to question who will next take the helm of the New York-based asset manager. "I have no higher priority than developing the next generational leaders for BlackRock," he said at the firm's investors day event.įink co-founded BlackRock in 1988 along with seven partners. NEW YORK, June 14 (Reuters) - BlackRock Inc (BLK.N) chairman and Chief Executive Officer Larry Fink said on Wednesday he is not planning to leave the world's biggest asset manager "any time soon," while his team unveiled plans for revenue growth.įink, 70, said he has no plans to retire, but BlackRock still has been planning for his succession.
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