BlackRock, Inc. (BLK.US) reported better-than-expected Q4 profits. The CEO stated that the record-breaking asset management size is just the beginning.

BlackRock, Inc. (BLK.US) announced its fourth-quarter financial performance. The company's adjusted earnings per share for Q4 increased by 23% compared to the same period last year to $11.93, exceeding market expectations. Q4 revenue increased by 23% year-on-year to nearly $5.7 billion, also surpassing market expectations. Total revenue for the full year of 2024 exceeded $20 billion, a 14% increase year-on-year. The company's adjusted annual operating profit increased by 23%, with a profit margin of 44.5%, an increase of 280 basis points compared to the previous year, putting it in a leading position in the industry. It is worth noting that as the world's largest asset management company, BlackRock, Inc. achieved net inflows of $281 billion in the fourth quarter, driving a record $641 billion in client cash inflows for the full year, highlighting the company's global influence in the equity and bond markets, index and active funds, and the rapidly growing and profitable private asset market. The company stated that funds flowing into its ETF business in the past year amounted to $390 billion, $226 billion flowed into equity funds, and $164 billion flowed into fixed-income funds. The amount attracted in the year exceeded the total assets accumulated over decades by some smaller fund management companies, demonstrating BlackRock, Inc.'s ability to continue attracting clients in turbulent markets, intense industry competition, and rapid changes. BlackRock, Inc.'s stock price rose by 26% in 2024, surpassing the S&P 500 index's 23% increase. However, U.S. stocks have been under pressure since the beginning of the year, mainly due to investors betting that the Federal Reserve will cut interest rates at a slower pace than expected a few months ago. Nevertheless, BlackRock, Inc.'s asset size is expected to increase significantly in the coming months. As of December 31st, BlackRock, Inc. had total assets of approximately $11.6 trillion, slightly below the expected $11.66 trillion, but up 15% year-on-year and higher than the previous quarter's $11.5 trillion. Following a series of acquisitions by CEO Larry Fink over the past year, the company's total asset size is expected to grow this year. Fink has committed nearly $30 billion across three deals to transform BlackRock, Inc. into a major player in alternative investments, private assets, and data fields. Fink stated, "This is just the beginning. As we enter 2025, the growth potential for BlackRock, Inc. is greater than ever before." In the last three months of last year, BlackRock, Inc. saw net inflows of $201 billion into its long-term investment funds, including net inflows of $281 billion into funds including cash management products, easily surpassing analysts' average expectations of $160 billion and $198 billion, respectively. The Bitcoin ETF launched by the company in early 2024 has developed rapidly and currently holds over $500 billion in assets. The quarterly performance of BlackRock, Inc. marked a brilliant year for the asset management company. The company has been seeking to strengthen its position in the rapidly growing private market and announced the acquisition of HPS Investment Partners last year. HPS Investment Partners manages around $150 billion in assets and is expected to help BlackRock, Inc. become a leader in the private credit sector. With a $12 billion acquisition of private credit firm HPS, the company will reshape its ability to provide comprehensive public bond and private credit financing to borrowers in the market. Furthermore, in October last year, the company completed a $12.5 billion acquisition of Global Infrastructure Partners and is currently finalizing a deal to acquire data company Preqin Ltd for 2.55 billion (USD 3.1 billion). Fink said, "For many companies, the merger period leads to a pause in customer engagement, but at BlackRock, Inc., customer activity accelerated after the fourth quarter." The financial report shows that the world's largest asset management company is continuing its expansion, while many companies are struggling to escape the active management of equity funds, poor investment returns, and three consecutive years of volatility in the bond market. BlackRock, Inc. is preparing to nearly double the size of its alternative assets, competing with industry leaders Blackstone Inc. (BX.US), KKR & Co. (KKR.US), and Apollo Global Management Inc (APO.US).