BlackRock strengthens its position in the alternative assets market

BlackRock has demonstrated its ambitions in the field of alternative investments with the impressive achievement of reaching the $450 billion mark in alternative assets, showing that it is more than just an ETF giant. The recently completed acquisition of Global Infrastructure Partners (GIP) for $12.5 billion has boosted its asset portfolio by a substantial $116 billion. This expansion brings BlackRock closer to industry leaders like Blackstone, Apollo Global Management, and KKR. With this growth, BlackRock now reaches $375 billion in fee-earning alternative investments, surpassing the Carlyle Group, which managed $307 billion in the second quarter. The acquisition of GIP represents the company's largest acquisition in the last 15 years, making BlackRock the second-largest infrastructure manager in the world, expected to bring an additional $250 million in management fees in the fourth quarter. BlackRock has also recently completed an agreement to acquire the private markets data firm Preqin for $3.1 billion, which could usher in a new era for retail investments by further opening access to private markets. In a similar direction, the company is striving to expand its private credit businesses and is considering acquiring HPS Investment Partners, which is valued at over $10 billion. Through these strategic moves, BlackRock is making clear strides to gain ground in the rapidly growing private credit market. The transformation into a comprehensive one-stop-shop for equities, bonds, and private strategies underscores BlackRock's aim to establish itself as a cross-market player in private markets.