- BlackRock targets $35 billion or more in revenue by 2030
- Investors looking for details on alternative asset strategy
- Preqin deal may lead to private market indexes
- Larry Fink's succession also a focus for investors, analyst says
NEW YORK, June 12 (Reuters) - BlackRock said on Thursday it was aiming to grow its revenue to $35 billion and more by 2030 from $20 billion last year, as the asset management giant expands its foothold in private markets.
The company said in an investor presentation that its private markets and technology businesses would be the new growth drivers and make up 30% or more of its total revenue by 2030, up from 15% in 2024.
BlackRock, the world's largest asset manager that oversaw $11.58 trillion as of the end of the first quarter, last year expanded its presence in private markets through a series of acquisitions.
BlackRock President Rob Kapito said 2024 was one of the most "transformative" years in the firm's history and struck an optimistic tone on future growth opportunities.
"The best of BlackRock is still ahead of us," he told investors on Thursday.
The company is also aiming to double its market cap to $280 billion and targeting $400 billion of cumulative fundraising in private markets by 2030.
BlackRock spent about $25 billion in 2024 on infrastructure investment fund Global Infrastructure Partners and private credit business HPS Investment Partners. It also struck a $3.2 billion deal to acquire UK data provider Preqin. That acquisition officially closed in March this year.
Private assets generate significantly higher fees than exchange-traded funds (ETFs), a core part of BlackRock's business through its iShares franchise.
"I think investors are going to want more granular details and more color on BlackRock's strategy to increase exposure to alternative assets," said CFRA Research analyst Cathy Seifert, ahead of the event.
In his 2025 annual chairman's letter to shareholders, BlackRock's Chairman and CEO Fink said protectionism had returned with force as a result of a wealth divide that could be countered by offering more investors access to high-return private markets such as infrastructure and private credit.
Ben Budish, an analyst at Barclays, said ahead of the investor day that he expected updates from the company on potentially creating indexes based on private markets after the acquisition of private markets data provider Preqin.
"Looking at what BlackRock did with iShares and ETFs, is there a way to do that with private markets? … I'm sure there's more details to come on that," he said.
Private credit, where non-bank institutions lend to companies, has experienced significant growth in recent years due to stricter regulations that have increased the cost for traditional banks to fund higher-risk loans.
But broader market volatility caused by U.S. President Donald Trump's aggressive stance on tariffs has led to slower dealmaking in private markets in general, raising some concerns there may be a mismatch between money available for private lending and not enough places to invest it.
Investors may also look for any signs regarding succession at the firm. Fink, 72, has led BlackRock since co-founding it in 1988. A recent wave of senior executive departures has reignited speculation about his eventual successor, even as Fink has signaled no immediate plan to step down.
"The firm would do itself a favor by highlighting the depth and breadth of their management bench, particularly since the company's business model is expanding and potentially becoming more complex," said Seifert.
Reporting by Davide Barbuscia in New York and Arasu Kannagi Basil in Bengaluru; editing by Megan Davies, Nia Williams, Maju Samuel and Shinjini Ganguli
Source: Reuters