BlackRock

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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.
Type Public
Traded as NYSEBLK
S&P 500 Component
Industry Investment management
Founded 1988
Headquarters 40 East 52nd Street
New York, New York, USA
Area served Worldwide
Key people

Laurence Fink
(Chairman & CEO)
Robert Kapito (Co-President)

Charles Hallac (Co-President)
Products Asset management
Revenue Increase US$ 10.2 billion (2013)[1]
Net income Increase US$ 2.932 billion (2013)
AUM Increase US$ 4.401 trillion (2014)[2]
Total assets Increase US$ 219,873 million (2013)[3]
Total equity Increase US$ 26,460 million (2013)
Employees 11,500[2]
Website BlackRock.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 is the world's largest asset manager,[4] a major provider of investment, advisory and risk management services. BlackRock has $4.401 trillion in assets under management[2] and is a global firm with 21 investment centers and 70 offices in 30 countries. BlackRock has clients in 100 countries.

According to Ralph Schlosstein, CEO of Evercore Partners, a New York-based investment bank and a former BlackRock executive: "BlackRock is the most influential financial institution in the world".[5]

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.

History[edit]

Origins[edit]

BlackRock was founded in 1988 by eight people including Larry Fink, Robert S. Kapito, Barbara Novick, Ben Golub, Susan Wagner, 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 previously 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]

Present day[edit]

BlackRock grew both organically[7] and by acquisition. On Aug 27, 2004, BlackRock Inc agreed to acquire SSRM Holdings Inc from MetLife for $375 million in cash and stock.[8] Another acquisition from MetLife was State Street Research Management, a mutual-fund business, on January 28, 2005. On September 29, 2006, BlackRock completed its merger with Merrill Lynch Investment Managers (MLIM), halving PNC's ownership and giving Merrill Lynch a 49.5% stake in the company. On October 1, 2007, BlackRock acquired the fund-of-funds business of Quellos Capital Management.[9] On April 30, 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. BlackRock is widely believed to have been the best choice for the job.[10]

In December 2009, the company acquired Barclays Global Investors (BGI). BGI was formerly headquartered in San Francisco, and has research and portfolio management teams in London, Sydney, Tokyo, Toronto, and other cities.

From acquisitions of Merrill, Quellos, State Street, and Barclays Global, BlackRock has become the singular asset manager in global financial markets while remaining firm in its mission of risk management.

On 1 April 2011, BlackRock (NYSE:BLK) replaced Genzyme (NASDAQ:GENZ) on the S&P 500 index.[11]

BlackRock Solutions[edit]

BlackRock Solutions, part of BlackRock, Inc., was retained by the Federal Reserve Bank of New York 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.

In 2000, BlackRock launched BlackRock Solutions to help clients address a variety of risk management and business process challenges by combining sophisticated risk analytics and investment systems with capital markets and business process expertise. The system is made up of three components including BlackRock Risk Management and Investment Platform Solutions, BlackRock Financial Markets Advisory, and BlackRock Client Solutions.

Aladdin, BlackRock’s electronic in-house investment management platform, combines risk analytics with portfolio management, trading and operations tools. As of 2013, the platform had nearly 2,000 employees. Aladdin supports the entire investment management process including risk reporting, analytics, portfolio management, trade execution, and operation processing.[12] It seeks not only to forecast individual asset movements but to measure how correlated those movements are, and to what effect.[12]

BlackRock makes its facilities available in whole or in part to others. Aladdin keeps track of 30,000 investment portfolios, including BlackRock's own along with 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.[12]

Key people[edit]

  • Laurence D. Fink — Founder, Chairman & CEO
  • Robert S. Kapito — Founder & Co-President
  • Charles Hallac — Co-President
  • Kendrick R. Wilson, III — Vice Chairman
  • Barbara Novick – Founder & Vice Chairman
  • Susan Wagner – Founder & member of the Board of Directors
  • Philipp Hildebrand — Vice Chairman
  • Robert Goldstein — Managing Director, Chief Operating Officer
  • Gary Shedlin — Senior Managing Director, Chief Financial Officer
  • Bennett W. Golub — Founder, Senior Managing Director, Chief Risk Officer
  • Robert W. Fairbairn — Senior Managing Director, Head of Retail and iShares Businesses
  • J. Richard Kushel — Senior Managing Director, Deputy Chief Operating Officer
  • Mark McCombe — Chairman of Asia Pacific Region
  • Linda Gosden Robinson - Senior Managing Director and Global Head of Marketing and Communications
  • David J. Blumer – Senior Managing Direct, Head of Europe Middle East & Africa
  • Kenneth F. Kroner – Senior Managing Director, Global Head of Multi Asset Strategies, Head and Chief Investment Officer of Scientific Active Equity
  • Matthew Mallow- Senior Managing Director, General Counsel
  • Patrick Olson – Managing Director, Global Head of Strategy and Planning
  • Quintin R. Price - Senior Managing Director, Global Head of Alpha Strategies
  • Amy Schioldager – Senior Managing Director, Global head of Beta Strategies
  • Jeffrey A. Smith – Senior Managing Director, Global Head of Human Resources
  • Derek N. Stein – Senior Managing Director, Global Head of Business Operations & Technology
  • Mark Wiedman – Managing Director, Global Head of iShares

Notes[edit]

  1. ^ "BlackRock Reports Quarterly EPS of $4.86 or $4.92 as adjusted". 
  2. ^ a b c " "BlackRock Reports First Quarter 2014 Diluted EPS of $4.40, or $4.43 as adjusted". April 17, 2014. Retrieved April 28, 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. ^ Kolhatkar, Sheelah (December 9, 2010). "Fink Builds BlackRock Powerhouse Without Goldman Sachs Backlash". Bloomberg. Retrieved April 20, 2013. 
  6. ^ "Corporate History". Retrieved 2014-03-22. 
  7. ^ "An Amazing Woman". 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. ^ "BlackRock to join S&P 500 index, replacing Genzyme". Bloomberg Businessweek. 2011-03-29.  Retrieved January 23, 2012.
  12. ^ a b c Briefing: BlackRock - The Monolith And The Markets, The Economist, December 7, 2013, pp. 24-26.

External links[edit]