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BlackRock Inc. (BLK) is a global investment management company, providing investment and technology services to institutional and retail clients. Clients look to BlackRock for access to mutual funds, investments focused on objectives related to retirement income and college savings, and exchange-traded funds (ETFs).
Key Takeaways
- BlackRock is one of the world’s largest investment management companies by AUM.
- The firm has five main revenue segments: “Investment advisory, administration fees, and securities lending revenue,” “Investment advisory performance fees,” “Technology services and subscription revenue,” “Distribution fees,” and “Advisory and other revenue.”
- The firm derives most of its revenue from investment advisory and administration fees.
- BlackRock’s competitors include The Vanguard Group, State Street Corp., and T. Rowe Price Group Inc.
BlackRock’s Financials
BlackRock filed its latest 10-Q in April 2025 for Q1 2025, which ended on March 31, 2025, reporting over $11.5 trillion in assets under management (AUM). The company reported a net income of $1.5 billion, down 4% compared to Q1 2024. Revenue grew by 11.6% from Q1 2024 to $5.3 billion.
BlackRock generated $84.2 billion of net flows in Q1 2025. The Americas region led all other regions with long-term net flows of $51 billion. The company’s ETF offerings generated $107 billion in long-term net flows, more than the long-term net inflows of retail and institutional investors combined.
Note: BlackRock only provides revenues by segment.
BlackRock’s Business Segments
BlackRock generates revenue from five segments: “Investment advisory, administration fees, and securities lending revenue,” “Investment advisory performance fees,” “Technology services and subscription revenue,” “Distribution fees,” and “Advisory and other revenue.”
Investment Advisory, Administrative Fees, and Securities Lending
This segment provides most of BlackRock’s revenue through the investment advisory business and administration fees. In Q1 2025, this category accounted for $4.4 billion, or about 83.4% of total revenue.
Investment Advisory Performance Fees
Performance fees are assessed when performance exceeds a predetermined threshold. Performance fees accounted for $60 million, or about 1.1% of total revenue in Q1 2025.
Technology Services
BlackRock offers investment management technology systems, risk management services, wealth management, and digital distribution tools to various insurance companies, banks, pension funds, and asset management clients. Technology services accounted for $436 million in revenue for Q1 2025, or about 8.3% of the total.
Distribution Fees
This segment includes revenue associated with the distribution and service of its products. In Q1 2025, this category accounted for $321 million, or about 6.1% of total revenue for the year.
Advisory and Other Revenue
This segment includes revenue derived from its advisory services for global financial institutions, regulators, and governments. In Q1 2025, this category accounted for $58 million, or about 1.1% of total revenue.
Important
BlackRock is the parent company for the iShares group of ETFs, a leader in the global ETF market.
Recent Developments
In March 2025, it was announced that BlackRock, Microsoft, Global Infrastructure Partners, and MGX would welcome NVIDIA and xAI into the Global Infrastructure Investment Partnership, now operating as AI Infrastructure Partnership (AI). This partnership will invest in AI infrastructure, seeking to expand and improve AI data centers, supply chain planning, and deliver innovative and efficient energy solutions.
In 2025, BlackRock finalized its acquisition of Preqin, a leading provider of private markets data. This will enhance BlackRock’s capabilities in offering integrated investment, technology, and data solutions across both public and private markets.
What Does BlackRock Do?
BlackRock is an asset management firm. The company manages investments for small retail investors all the way to large financial institutions and governments. They’re a financial advisor that helps investors grow their money by investing in stocks, bonds, ETFs, and various other investments. The company is one of the largest asset management firms in the world, handling trillions of dollars.
What Is the Difference Between BlackRock and Blackstone?
Though very similar in name and both some of the largest financial companies in the world, BlackRock and Blackstone are very different companies. BlackRock is an asset management firm, managing trillions of dollars for investors and helping them grow their money through investments in stocks, bonds, and other assets. BlackRock also has its iShares business, which is a popular ETF brand. Blackstone, on the other hand, is a private equity firm. As a private equity firm, it purchases various companies, real estate, and other assets, improves them, and then sells them for a profit. Both companies used to be part of the same entity but split in 1994 and now operate separately.
What Corporate Clients Has BlackRock Advised?
BlackRock’s corporate clients have included AIG, UBS, the Central Bank of Ireland, and the Federal Reserve Bank of New York.
The Bottom Line
BlackRock is a global investment management company with offices located around the world. The company boasts over $11.5 trillion in AUM, has a variety of business segments, and is one of the largest and most successful asset management companies in the world.
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