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== History ==
== History ==
[[Image:Black-rock-hq.jpg|thumb|left|196px|New York Headquarters]]
[[Image:Black-rock-hq.jpg|thumb|left|196px|New York Headquarters]]
BlackRock was founded as BlackStone Financial Management within the private equity firm [[Blackstone Group]] in 1988. [[Laurence D. Fink|Larry Fink]], BlackRock’s founder and CEO, had joined Blackstone in 1988 as a partner, along with Ralph Schlosstein, former White House aide under the Carter administration, and [[Robert Kapito]] and Sue Wagner. Before joining Blackstone, Fink was a managing director at [[First Boston]], where he pioneered the [[Mortgage-backed security|mortgage-backed securities]] market in the United States. In 1992 Fink, Schlosstein and Co separated from the Blackstone Group under the name BlackRock and aggressively re-invented it as an independent asset-management company. In 1995, [[PNC Financial Services Group]] purchased BlackRock and in 1999, assets under management had grown to $165 billion and the firm decided to go public.
BlackRock was founded as BlackStone Financial Management within the [[private equity]] firm [[Blackstone Group]] in 1988. [[Laurence D. Fink|Larry Fink]], BlackRock’s founder and CEO, had joined Blackstone in 1988 as a partner, along with Ralph Schlosstein, former White House aide under the Carter administration, and [[Robert Kapito]] and Sue Wagner. Before joining Blackstone, Fink was a managing director at [[First Boston]], where he pioneered the [[Mortgage-backed security|mortgage-backed securities]] market in the United States. In 1992 Fink, Schlosstein and Co separated from the Blackstone Group under the name BlackRock and aggressively re-invented it as an independent asset-management company. In 1995, [[PNC Financial Services Group]] purchased BlackRock and in 1999, [[assets under management]] had grown to $165 billion and the firm decided to go public.


Much of BlackRock's recent growth has been through its acquisitions. On January 28, 2005, BlackRock purchased [[State Street Research Management]], a mutual-fund business that had previously been owned by [[MetLife]]. This acquisition added a sizable equity business to BlackRock's funds, which had previously comprised mostly fixed-income securities. 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-percent stake in the company. On October 1, 2007, BlackRock acquired the fund-of-funds business of [[Quellos Capital Management]].<ref>{{cite web|url=http://www2.blackrock.com/content/groups/global/documents/literature/qpr_062507_bb.pdf|title=BlackRock to Acquire Fund of Funds Business from Quellos Group, LLC|date=2007-06-26}}</ref> On April 30, 2009, BlackRock hired 43 employees from R3 Capital Management, LLC and took control of the $1.5 billion fund.
Much of BlackRock's recent growth has been through its acquisitions. On January 28, 2005, BlackRock purchased [[State Street Research Management]], a mutual-fund business that had previously been owned by [[MetLife]]. This acquisition added a sizable equity business to BlackRock's funds, which had previously comprised mostly fixed-income securities. 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-percent stake in the company. On October 1, 2007, BlackRock acquired the fund-of-funds business of [[Quellos Capital Management]].<ref>{{cite web|url=http://www2.blackrock.com/content/groups/global/documents/literature/qpr_062507_bb.pdf|title=BlackRock to Acquire Fund of Funds Business from Quellos Group, LLC|date=2007-06-26}}</ref> On April 30, 2009, BlackRock hired 43 employees from R3 Capital Management, LLC and took control of the $1.5 billion fund.
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Headquartered in New York, BlackRock serves clients from offices in 24 countries, maintaining a major presence in North America, Europe, Asia-Pacific, and the Middle East. With approximately 8,400 employees, including more than 700 investment professionals worldwide.
Headquartered in New York, BlackRock serves clients from offices in 24 countries, maintaining a major presence in North America, Europe, Asia-Pacific, and the Middle East. With approximately 8,400 employees, including more than 700 investment professionals worldwide.


BlackRock Financial Management Inc. has been retained by the New York Fed 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.<ref>{{cite web|url=http://www.newyorkfed.org/markets/rmbs_terms.html|title=New York Fed}}</ref>
BlackRock Financial Management Inc. has been retained by the [[New York Fed]] 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]].<ref>{{cite web|url=http://www.newyorkfed.org/markets/rmbs_terms.html|title=New York Fed}}</ref>


In December 2009 the company acquired Barclays Global Investors (BGI), giving it control of the [[iShares]] system. The division formerly branded BGI is headquartered in [[San Francisco]]<ref name="aboutus">BGI site [http://www.barclaysglobal.com/about/index.jhtml "About us" page], as of December 2007</ref>, and also has research and portfolio management teams in [[London]], [[Sydney]], [[Tokyo]], [[Toronto]] and other cities, as well as client service offices in several additional major financial centres in [[Europe]], [[North America]] and [[Asia]] <ref>BGI site [http://www.barclaysglobal.com/about/locations/ "Locations" page], as of August 2006</ref>.
In December 2009 the company acquired Barclays Global Investors (BGI), giving it control of the [[iShares]] system. The division formerly branded BGI is headquartered in [[San Francisco]]<ref name="aboutus">BGI site [http://www.barclaysglobal.com/about/index.jhtml "About us" page], as of December 2007</ref>, and also has research and portfolio management teams in [[London]], [[Sydney]], [[Tokyo]], [[Toronto]], and other cities, as well as client service offices in several additional major financial centres in [[Europe]], [[North America]], and [[Asia]] <ref>BGI site [http://www.barclaysglobal.com/about/locations/ "Locations" page], as of August 2006</ref>.


== Barclays Global Investors ==
== Barclays Global Investors ==

Revision as of 12:40, 25 November 2010

Template:Distinguish2

For other uses, see Black Rock (disambiguation).
BlackRock Inc
Company typePublic (NYSE: BLK)
ISINUS09247X1019 Edit this on Wikidata
IndustryInvestment management
Founded1988
FounderLarry Fink Edit this on Wikidata
HeadquartersNew York, USA
Key people
Laurence D. Fink, CEO
ProductsAsset management
RevenueIncrease US$4.74 Billion (FY 2009)[1]
Increase US$879 Million (FY 2009)[1]
Total assetsIncrease US$178 Billion (FY 2009)[2]
Total equityIncrease US$24.3 Billion (FY 2009)[2]
Number of employees
8,900 (2010)
Websitewww.blackrock.com

BlackRock is a global investment management firm based in New York City.

Rundown

The company acquired Barclays Global Investors in December 2009 under the BlackRock name, making it the largest money manager in the world.[3] The deal had been approved by Barclays shareholders and announced on June 11, 2009.[4] As of September 30, 2010, BlackRock’s assets under management total US$3.446 trillion across equity, fixed income, cash management, alternative investments, real estate, and advisory strategies. Through BlackRock Solutions — BlackRock offers risk management, strategic advisory, and enterprise investment system services to a broad base of clients with portfolios totaling approximately US$9 trillion.[5] BlackRock is publicly-traded, with Bank of America, PNC Financial Services, and Barclays PLC holding 34.1%, 24.6%, and 19.9% respectively, with the remainder owned by institutional and individual investors, as well as BlackRock employees.[5]

History

New York Headquarters

BlackRock was founded as BlackStone Financial Management within the private equity firm Blackstone Group in 1988. Larry Fink, BlackRock’s founder and CEO, had joined Blackstone in 1988 as a partner, along with Ralph Schlosstein, former White House aide under the Carter administration, and Robert Kapito and Sue Wagner. Before joining Blackstone, Fink was a managing director at First Boston, where he pioneered the mortgage-backed securities market in the United States. In 1992 Fink, Schlosstein and Co separated from the Blackstone Group under the name BlackRock and aggressively re-invented it as an independent asset-management company. In 1995, PNC Financial Services Group purchased BlackRock and in 1999, assets under management had grown to $165 billion and the firm decided to go public.

Much of BlackRock's recent growth has been through its acquisitions. On January 28, 2005, BlackRock purchased State Street Research Management, a mutual-fund business that had previously been owned by MetLife. This acquisition added a sizable equity business to BlackRock's funds, which had previously comprised mostly fixed-income securities. 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-percent stake in the company. On October 1, 2007, BlackRock acquired the fund-of-funds business of Quellos Capital Management.[6] On April 30, 2009, BlackRock hired 43 employees from R3 Capital Management, LLC and took control of the $1.5 billion fund.

Headquartered in New York, BlackRock serves clients from offices in 24 countries, maintaining a major presence in North America, Europe, Asia-Pacific, and the Middle East. With approximately 8,400 employees, including more than 700 investment professionals worldwide.

BlackRock Financial Management Inc. has been retained by the New York Fed 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.[7]

In December 2009 the company acquired Barclays Global Investors (BGI), giving it control of the iShares system. The division formerly branded BGI is headquartered in San Francisco[8], and also has research and portfolio management teams in London, Sydney, Tokyo, Toronto, and other cities, as well as client service offices in several additional major financial centres in Europe, North America, and Asia [9].

Barclays Global Investors

Barclays Global Investors: San Francisco Office

BGI began as units of Wells Fargo Nikko and Barclays Bank which merged in 1996. In the 1970s Wells Fargo invented the first passive index investing strategy for major institutional investors under the leadership of Frederick L. A. Grauer. Later, it went on to help pioneer the exchange-traded fund business (through its iShares brand), which is a security that can be traded at any time, and whose value is based on the value of a basket of stocks, bonds or commodities. ETFs can give tax advantages and intraday trading mechanical benefits that other products such as mutual funds do not. Since the economics of indexed fund management are heavily influenced by economies of scale, Barclays grew to be the largest asset managing company in the world.

Since 2000, BGI's active fund management business grew significantly, to the point where it accounted for approximately 50% of the firm's revenue in 2006. However, like other actively managed hedge funds, it was badly affected in the quant fund meltdown in 2008. The passively managed iShares arm, in contrast, performed extremely well, accounting for about 45% of the revenue of the firm in 2008. At the end of 2008, the iShares division, with more than $290 billion in assets, accounted for about half the U.S. ETF industry. BlackRock's global Exchange Traded Funds assets hit an all time high of $1tln ($1,032bln) at the end of December 2009, 45.2% above the $710.9bln at the end of 2008[10].

In April 2009, Barclays had proposed selling its iShares arm to CVC Capital Partners, a private equity firm that had agreed to pay more than $4 billion. However, under a 45-day "go shop" clause, a later bid by BlackRock was announced on June 11, 2009[11] for the whole of BGI, in a mixed cash-stock deal worth around $13.5 billion (37.8 million shares of common stock and $6.6 billion in cash)[12].

Key people

  • Laurence D. Fink — Chairman & CEO
  • Robert S. Kapito — President
  • Robert W. Fairbairn - Vice Chairman, Head of Global Client Group
  • Blake Grossman - Vice Chairman, Head of Scientific Equities
  • Charles S. Hallac - Vice Chairman, Co-Chief Operating Officer
  • Rich Kushel - Vice Chairman, Head of International Business
  • Susan L. Wagner - Vice Chairman, Co-Chief Operating Officer
  • Bennett W. Golub - Vice Chairman, Chief Risk Officer

Notes

  1. ^ a b BlackRock (BLK) annual SEC income statement filing via Wikinvest
  2. ^ a b BlackRock (BLK) annual SEC balance sheet filing via Wikinvest
  3. ^ BlackRock's Fink: BGI Integration 'Off To A Very Strong Start' Joseph Checkler. Wall Street Journal. 9 December 2009
  4. ^ "Blackrock to acquire stake in Barclays unit". The New York Times. June 12, 2009. Retrieved April 26, 2010.
  5. ^ a b "BlackRock About Us".
  6. ^ "BlackRock to Acquire Fund of Funds Business from Quellos Group, LLC" (PDF). 2007-06-26.
  7. ^ "New York Fed".
  8. ^ BGI site "About us" page, as of December 2007
  9. ^ BGI site "Locations" page, as of August 2006
  10. ^ Opalesque (14 January 2010). "BlackRock's global ETF's hit an all time high of $1tln".
  11. ^ "Blackrock to acquire stake in Barclays unit, NYT, June 12, 2009". The New York Times. June 12, 2009. Retrieved April 26, 2010.
  12. ^ "The Blackrock acquisition of BGI - The deal structure".

References

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