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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.
Company typePublic
NYSE: BLK
S&P 500 Component
ISINUS09247X1019 Edit this on Wikidata
IndustryInvestment management
Founded1988
FounderLarry Fink Edit this on Wikidata
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)
ProductsAsset management
RevenueIncrease US$ 10.2 billion (2013)[1]
Increase 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)
Number of employees
11,500[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 is the world's largest asset manager with over $4.59 trillion in assets under management.[2]

BlackRock is independently managed, with no single majority stockholder, stock is owned by institutional and individual investors, including BlackRock employees.

History

Origins

BlackRock headquarters in Midtown Manhattan, New York City.

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.[4]

1999–2009

BlackRock grew both organically[5] and by acquisition. In 2004, BlackRock acquired SSRM Holdings, Inc. from MetLife for $375 million in cash and stock.[6] 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.[7] 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.[8]

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

In 2010, Ralph Schlosstein, the CEO of Evercore Partners and a BlackRock founder, called BlackRock "the most influential financial institution in the world".[9]

On 1 April 2011, BlackRock (NYSE:BLK) replaced Genzyme (NASDAQ:GENZ) on the S&P 500 index.[10]

BlackRock Solutions

BlackRock Solutions, the risk management division of BlackRock, Inc., was retained by the U. S. Treasury Department in May, 2009 [11] to manage the toxic mortgage assets [i.e. to analyze, unwind, and price] that were owned by Bear Stearns Co, AIG, Inc., Freddie Mac, Morgan Stanley and other financial firms that were affected in the 2008 financial crisis.

In 2000, BlackRock launched BlackRock Solutions which grew from the Aladdin System (which is the enterprise investment system), Green Package (which is the Risk Reporting Service) PAG (portfolio analytics) and AnSer (which is the interactive analytics). BlackRock Solutions (BRS) serves two roles within BlackRock.

BlackRock Solutions is the in-house investment analytics and “process engineering” department for BlackRock which works with their portfolio management teams, risk and quantitative analysis, business operations and every other part of the firm that touches the investment process. BlackRock Solutions has three primary division which include: risk management investment platform solutions, FMA, client solutions. As of 2013, the platform had nearly 2,000 employees. [12] It seeks not only to forecast individual asset movements but measure how correlated those movements are, and to what effect.[12] 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.[12]

Organization

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

Key people

  • Laurence D. Fink - Founder, Chairman & CEO
  • Robert S. Kapito - Founder & Co-President
  • Charles Hallac - Co-President
  • Susan Wagner – Founder, member of the Board of Directors
  • Kendrick R. Wilson, III - Vice Chairman
  • Barbara Novick – Founder, Vice Chairman
  • 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

Notes

  1. ^ "BlackRock Reports Quarterly EPS of $4.86 or $4.92 as adjusted" (PDF).
  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. ^ "Corporate History". Retrieved 2014-03-22.
  5. ^ "An Amazing Woman". pollbudservice.pl/public/blogs. 2008-07-22. Retrieved 2008-07-22.
  6. ^ "BlackRock Acquiring State Street Research from MetLife".
  7. ^ "BlackRock to Acquire Fund of Funds Business from Quellos Group, LLC" (PDF). 2007-06-26. BlackRock, Inc.
  8. ^ 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."
  9. ^ Kolhatkar, Sheelah (December 9, 2010). "Fink Builds BlackRock Powerhouse Without Goldman Sachs Backlash". Bloomberg. Retrieved April 20, 2013.
  10. ^ "BlackRock to join S&P 500 index, replacing Genzyme". Bloomberg Businessweek. 2011-03-29. Retrieved January 23, 2012.
  11. ^ Fink, Laurence (2009-03-19). "BlackRock Wears Multiple Hats In the Crisis, Fink's Firm Is Buyer, Seller, Adviser; 'Our Clients Trust Us'". The Wall Street Journal . Dow Jones & Company, Inc. {{cite news}}: |access-date= requires |url= (help); Text "http://www.online.wsj.com/articles/SB124269131342732625" ignored (help)
  12. ^ a b c Briefing: BlackRock - The Monolith And The Markets, The Economist, December 7, 2013, pp. 24-26.
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