Larry Fink built the world’s biggest asset manager by making access to stocks and bonds easy. Can the same be done with more opaque assets?
BlackRock, the largest asset manager with $11.6 trillion in assets under management, is pursuing a strategy to unite public and private markets. The company has made significant acquisitions, including the $12.5 billion purchase of Global Infrastructure Partners (GIP) and a $12 billion deal for private credit manager HPS Investment Partners, to expand its presence in private markets. BlackRock also acquired Preqin, a data provider on private markets, to enhance its ability to measure private asset performance and develop new investment indexes. These moves aim to capitalize on the growth of private markets, which include private credit and infrastructure, and offer higher fees compared to public markets. However, the strategy has raised concerns among regulators and politicians about market concentration and monopolistic practices. BlackRock's efforts reflect its goal to integrate public and private markets, aligning with a broader shift in the asset management industry.
