BlackRock

BlackRock is the world’s largest asset manager guiding individuals, financial professionals and institutions in building better financial futures. An American global investment management corporation headquartered in New York City. It is the world's largest asset manager with $7.4 trillion in assets under management as of end-2020. It is the parent company of iShares, the largest exchange-traded fund (ETF) provider in the world, and holds a major stake in the London Stock Exchange.

BlackRock was founded in 1988 by Laurence D. Fink and Robert S. Kapito, the current Chairman and CEO, respectively. The firm operates in three major business segments: institutional, retail, and alternative investment. Its Institutional Client Group (ICG) provides services such as portfolio management, risk management, and financial advice to institutional investors. Its Retail Client Group provides services to individual investors through its website, BlackRock.com, as well as through financial advisors. Its Alternative Investment Group provides alternative investments such as private equity, real estate, and hedge funds.

BlackRock is known for its long-term investments, and its focus on sustainability and ESG (environmental, social, and governance) investing. It is one of the largest investors in renewable energy and has established a climate finance unit to help clients transition to a low-carbon economy. BlackRock is also a leader in ETFs, with a wide range of products including iShares, which is the world’s largest ETF provider.

BlackRock is one of the most influential companies in the global financial system and has become a major player in the current economic environment. Its size and scope allow it to have an impact on markets and economies around the world.

Over the past 30 years, BlackRock has evolved from an eight-person start-up to a global company that’s trusted to manage more assets than any other investment manager. 

BlackRock began in 1988, with eight people in a single room who shared a determination to put clients' needs and interests first. Recognising the opportunity to bring transparency, scale, and innovation to risk management for the broader industry, BlackRock began to sell its proprietary technology, Aladdin. This technology was integral to the firm and was embedded in everything it did, thus differentiating it as an investment and risk manager. 

BlackRock made its Initial Public Offering on the New York Stock Exchange on October 1st, 1999, for $14 a share. By the end of that year, the firm had $165 billion in assets under management due to its strengthening relationships with global institutions. In 2000, BlackRock founded BlackRock Solutions, with Aladdin as the basis for the business. This marked the beginning of BlackRock’s role as a technology provider. 

In 2006, BlackRock acquired Merrill Lynch Investment Management, expanding its retail and international presence. In 2008, amidst the financial crisis, the Head of the Federal Reserve Bank of New York asked BlackRock to analyse Bear Stearns’ mortgage-backed securities assets and determine their value. 

BlackRock played a key advisory role to institutions across the globe seeking to navigate the financial crisis. In 2009, BlackRock acquired Barclay’s Global Investors (BGI), becoming the world’s largest asset manager, with employees in 24 countries. With this acquisition, BlackRock made the unprecedented move of bringing alpha and index strategies under one roof to provide a wider breadth of solutions for its clients. 

In 2012, BlackRock launched iShares Core to provide investors with broad stock and bond market exposure at the foundation of their portfolios in a low-cost and tax-efficient way. In 2016, given the changing wealth management landscape, BlackRock focussed on providing portfolio construction expertise to financial advisors by leveraging its diverse platform and portfolio construction technology. Aladdin Wealth, which benefits from the same data and risk capabilities used by its own investment teams, was sold to its first wealth management client. 

In 2017, BlackRock further increased its commitment to Investment Stewardship, emphasising the importance of purpose to long-term profitability. Through this work and the overall dedication to Investment Stewardship over the past seven years, it goes beyond proxy voting to engage with companies to drive long-term, sustainable financial performance and ultimately the value of its client’s assets. 

In 2018, BlackRock launched its first AI Lab in Palo Alto to accelerate its use of artificial intelligence and associated disciplines – machine learning, data science, and natural language processing – to improve outcomes and drive progress for investors, clients, and the firm. In 2019, BlackRock further focussed its role in the retirement crisis, launching BlackRock Retirement Solutions Group. With two-thirds of the assets it manages related to retirement, this new initiative was formed to explore innovative solutions to the most pressing retirement challenges. 

BlackRock acquired eFront, the world’s leading provider of end-to-end alternative investment management software and solutions, to accelerate its ambition to make alternatives less alternative and enable a whole portfolio approach. The acquisition established a new standard for investment and risk management technology, enabling investors to seamlessly manage portfolios across public and private asset classes on a single platform.

BlackRock's mission is to "create a better financial future for their clients".

According to the company website, BlackRock’s purpose is to help more and more people experience financial well-being. And as a fiduciary to its clients, the company dedicates itself to protecting and growing the value of its clients’ assets.