BlackRock, Inc. is an American global 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 $6.3 trillion in
assets under management as of December 2017.
globally with 70 offices in 30 countries and clients in 100
countries. Due to its power and the sheer size and scope of its
financial assets and activities,
BlackRock has been called the world's
largest shadow bank.
3 Key people
4 See also
6 Further reading
7 External links
BlackRock was founded in 1988 by Larry Fink, Robert S. Kapito, Susan
Wagner, Barbara Novick, Ben Golub, Hugh Frater, Ralph Schlosstein, and
Keith Anderson to provide institutional clients with asset management
services from a risk management perspective. 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. During Fink's tenure, he had lost $100
million as head of First Boston. That experience was the motivation to
develop what he and the others considered to be excellent risk
management and fiduciary practices. Initially, Fink sought funding
(for initial operating capital) from Pete Peterson of The Blackstone
Group who believed in Fink's vision of a firm devoted to risk
management. Peterson called it Blackstone Financial
Management. In exchange for a 50 percent stake in the
bond business, initially Blackstone gave Fink and his team a $5
million credit line. Within months, the business had turned
profitable, and by 1989 the group's assets had quadrupled to $2.7
billion. The percent of the stake owned by Blackstone also fell to
40%, compared to Fink's staff.
By 1992, Blackstone had a stake equating to about 35% of the company,
and Schwarzman and Fink were considering selling shares to the
public. The firm adopted the name
BlackRock in 1992, and by the end
of that year,
BlackRock was managing $17 billion in assets. At the end
BlackRock was managing $53 billion. In 1994, Blackstone
Stephen A. Schwarzman
Stephen A. Schwarzman and Fink had an internal dispute over
methods of compensation and over equity. Fink
wanted to share equity with new hires, to lure talent from banks,
unlike Schwarzman, who did not want to further lower Blackstone's
stake. They agreed to part ways, so the
BlackRock partners (Sue
Wagner) orchestrated a deal to sell part of the company.[citation
needed] In June 1994 Blackstone sold a mortgage-securities unit with
$23 billion in assets to PNC Bank Corp. for $240 million. The unit had
traded mortgages and other fixed-income assets, and during the sales
process the unit changed its name from Blackstone Financial Management
BlackRock Financial Management. Schwarzman remained with
Blackstone, while Fink went on to become chairman and CEO of BlackRock
Inc. In 1998, PNC’s equity, liquidity, and mutual fund activities
were merged into BlackRock.
BlackRock headquarters in Midtown Manhattan, New York City.
BlackRock went public in 1999 at $14 a share on the New York Stock
Exchange. By the end of 1999,
BlackRock was managing $165 billion
BlackRock grew both organically and by acquisition. In
BlackRock made its first major acquisition, buying State
Street Research & Management's holding company SSRM Holdings, Inc.
MetLife for $375 million in cash and stock. The acquisition
raised BlackRock's assets under management from $314 billion to $325
billion. The deal included the mutual-fund business State Street
Research & Management in 2005.
BlackRock merged with Merrill
Lynch Investment Managers (MLIM) in 2006, 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.
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. In 2009, BlackRock
first became the No. 1 asset manager worldwide. In April 2009,
BlackRock acquired R3 Capital Management, LLC and took control of the
$1.5 billion fund. On 12 June 2009,
Barclays sold its Global
Investors unit (BGI), which included its exchange traded fund
business, iShares, to
BlackRock for US$13.5 billion. Through the deal,
Barclays attained a near-20% stake in BlackRock. BGI was
headquartered in San Francisco, with research and portfolio management
teams in London, Sydney, Tokyo, Toronto, and other cities.[citation
In 2010, Ralph Schlosstein, the CEO of
Evercore Partners and a
BlackRock founder, called
BlackRock "the most influential financial
institution in the world." On 1 April 2011,
Genzyme on the S&P 500 index.
In 2013, Fortune listed
BlackRock on its annual list of the world's 50
Most Admired Companies. In 2014,
The Economist said that
BlackRock's $4 trillion under management made it the "world's biggest
asset manager," and it was larger than the world's largest bank, the
Industrial and Commercial Bank of China
Industrial and Commercial Bank of China with $3 trillion. In May of
the same year,
BlackRock invested in Snapdeal.
In December 2014 a
BlackRock managing director in
London was banned by
Financial Conduct Authority
Financial Conduct Authority for "not being a fit and
proper" person, because he paid £43,000 to avoid prosecution for
dodging train fares.
BlackRock said: "Jonathan Burrows left BlackRock
earlier this year. What he admitted to the FCA is totally contrary to
our values and principles."
At the end of 2014, the
Sovereign Wealth Fund Institute
Sovereign Wealth Fund Institute reported that
65% of Blackrock's assets under management were made up of
By June 30, 2015,
BlackRock had US $4.721 trillion of assets under
management. On August 26, 2015,
into a definitive agreement to acquire FutureAdvisor, a digital
wealth management provider with reported assets under management of
$600 million. Under the deal,
FutureAdvisor would operate as a
BlackRock Solutions (BRS).
BlackRock announced in
November 2015 that they would wind down the
BlackRock Global Ascent
hedge fund after losses. The Global Ascent fund had been its only
dedicated global macro fund, as
BlackRock was "better known for its
mutual funds and exchange traded funds." At the time, BlackRock
managed $51 billion in hedge funds, with $20 billion of that in funds
of hedge funds.
In March 2017, the
Financial Times announced that BlackRock, after a
six-month review led by Mark Wiseman, had initiated a restructuring of
its $8bn actively-managed fund business, resulting in the departure of
seven portfolio managers and a $25m charge in Q2, replacing certain
funds with quantitative investment strategies. In May 2017,
BlackRock increased its stake in both
CRH plc and Bank of Ireland.
By April 2017, iShares business accounted for $1.41tn, or 26 percent,
of BlackRock's total assets under management, and 37 percent of
BlackRock’s base fee income. In April 2017,
BlackRock backed the
inclusion of mainland Chinese shares in MSCI’s global index for the
BlackRock Solutions, the risk management
division of BlackRock, Inc. The division 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. First,
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. Second,
(BRS) and the three primary divisions (which include risk management
investment platform solutions, FMA, and client solutions) are services
that offered to institutional clients. As of 2013, the platform had
nearly 2,000 employees.
BlackRock differentiates itself from other asset managers by claiming
its risk management is not separate.
Risk management is the foundation
and cornerstone of the firm's entire platform. 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.
BlackRock Solutions was retained by the
U. S. Treasury Department
U. S. Treasury Department in
May 2009 to manage the toxic mortgage assets (i.e. to analyze,
unwind, and price) that were owned by Bear Stearns, AIG, Inc., Freddie
Mac, Morgan Stanley, and other financial firms that were affected in
the 2008 financial crisis.
Laurence D. Fink
Laurence D. Fink – Founder, Chairman & CEO
Blake Grossman, former Vice Chairman
Robert S. Kapito
Robert S. Kapito – Founder & Co-President
Susan Wagner – Founder, member of the Board of Directors
Simon Chirayath – Vice Chairman
Barbara Novick – Founder, Vice Chairman
Philipp Hildebrand – Vice Chairman
Robert Goldstein – Senior Managing Director, Chief Operating Officer
Gary Shedlin – Senior Managing Director, Chief Financial Officer
Bennett W. Golub – Founder, Senior Managing Director, Chief Risk
New York portal
List of S&P 500 companies
Companies listed on the
New York Stock Exchange
New York Stock Exchange (B)
List of asset management firms
List of CDO managers
List of companies based in New York City
List of hedge funds
List of mutual-fund families in the United States
Asset management in Singapore
^ a b c d e f g
BlackRock Financials, 2017, retrieved February 24,
BlackRock - About Us". December 31, 2017. Retrieved March 13,
^ BlackRock's Current Share Price Doesn't Capture Its Long-Term Growth
Prospects - Contacts and Office Locations, Forbes, retrieved July 26,
^ "Die grösste Schattenbank der Welt". Basler Zeitung. November 20,
2012. Retrieved May 8, 2017.
^ a b "Shadow and substance". The Economist. May 10, 2014. Retrieved
May 8, 2017.
^ "BlackRock". Fund Strategy. Retrieved 22 December 2015.
^ a b c d e "Schwarzman Says Selling
BlackRock Was 'Heroic' Mistake".
Bloomberg.com. September 30, 2013. Retrieved 17 November 2016.
^ a b c d History, BlackRock, retrieved May 9, 2017
^ "Corporate History". Archived from the original on May 17, 2012.
^ Eric Hazard (February 8, 2006). "
BlackRock Acquiring State Street
Research from MetLife". plansponsor.com.
^ a b c "BlackRock: The $4.3 trillion force". Fortune. July 7, 2014.
Retrieved May 9, 2017.
BlackRock and a hard place". The Economist. February 16, 2006.
Retrieved May 9, 2017.
BlackRock to Acquire Fund of Funds Business from Quellos Group,
LLC" (PDF). 2007-06-26. BlackRock, Inc.
^ 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."
BlackRock to Acquire R3 Capital". The New York Times. April 17,
2009. Retrieved May 9, 2017.
^ "US giant
BlackRock buys arm of
Barclays bank The Guardian". The
Guardian. UK. Press Association. 12 June 2009. Retrieved 21 February
^ a b Kolhatkar, Sheelah (December 9, 2010). "Fink Builds BlackRock
Powerhouse Without Goldman Sachs Backlash". Bloomberg. Retrieved April
BlackRock to join S&P 500 index, replacing Genzyme". Bloomberg
Businessweek. 2011-03-29. Archived from the original on
2012-10-26. Retrieved January 23, 2012.
Snapdeal raises $100M in fresh funding from BlackRock, Temasek,
PremjiInvest, others". VC Circle.
^ "FCA Life Ban For Fare-Dodging Jonathan Burrows". Sky News. 15
December 2014. Retrieved 15 December 2014.
BlackRock Too Big". Sovereign Wealth Fund Institute. n.d.
Retrieved 9 February 2015.
^ a b "
BlackRock to Acquire FutureAdvisor".
BlackRock Press Releases.
BlackRock. Retrieved 26 August 2015.
^ Tepper, Fitz (24 June 2015). "YC Alum
FutureAdvisor Is Now Managing
$600 Million In Assets". TechCrunch. Retrieved 12 September
^ Stevenson, Alexandra (2015-11-18). "
BlackRock to Wind Down Macro
Hedge Fund". The New York Times. ISSN 0362-4331. Retrieved
BlackRock cuts ranks of stockpicking fund managers". Financial
Times. 27 March 2017. Retrieved 30 March 2017.
^ Hamilton, Peter (May 8, 2017). "
BlackRock increases stakes in CRH
and Bank of Ireland". Irish Times. Retrieved May 8, 2017.
^ Foley, Stephen (April 19, 2017). "
BlackRock assets under management
hit $5.4tn on record ETF inflows". Financial Times. Retrieved May 10,
^ Hughes, Jennifer (April 20, 2017). "
BlackRock backs mainland China
shares for MSCI benchmarks". Financial Times. Retrieved May 10,
^ a b c Briefing:
BlackRock - The Monolith And The Markets, The
Economist, December 7, 2013, pp. 24-26.
Brooker, Katrina (October 29, 2008). "Can this man save Wall Street?".
Foley, Stephen (April 2, 2017). "BlackRock's active funds navigate
rough seas". Financial Times.
BlackRock Smart Beta website
BlackRock Factor Investing website
BlackRock Global Cash Management website
Business data for BlackRock: Google Finance
PNC Financial Services
PNC Financial Services Group
Founded in 1852
Based in Pittsburgh, Pennsylvania
Harris Williams & Co.
BlackRock (Co-owned with
Bank of America
Bank of America and Barclays)
Christmas Price Index
National City Corp.
National City Corp. (details)
Pittsburgh National Bank
RBC Bank USA
BankAtlantic (Central Florida locations only)
Tower at PNC Plaza
One PNC Plaza
One Tampa City Center
Two PNC Plaza
Three PNC Plaza
PNC Bank Building
PNC Bank Building (Philadelphia)
PNC Bank Building
PNC Bank Building (Toledo)
PNC Plaza (Raleigh)
PNC Center (Cincinnati)
PNC Center (Cleveland)
PNC Center (Fort Lauderdale)
PNC Center (Akron)
PNC Bank Arts Center
National Banking Act