BlackRock, the world's largest asset manager, has surpassed an assets under management milestone of over 11 trillion US dollars for the first time. This milestone led the company's stock to rise to a new high. The success is attributed to a market rally and record-breaking inflows from investors.

In the past quarter, BlackRock's assets increased by 8% to $11.5 trillion, supported by long-term inflows of $160 billion and an additional $61 billion in the company's cash management products. These strong investor flows enabled a revenue increase of 15% to $5.2 billion, exceeding analysts' expectations. Thanks to improved margins, net profit rose to $1.63 billion.

We are well positioned to continue growing," said Larry Fink, CEO of BlackRock, on an earnings call with analysts. "We expect the momentum to build up until the end of the year and beyond. Investors need to be ready to take on more risk again to achieve their long-term returns." Fink emphasized the company's ambitious strategy and expressed optimism: "I have never felt so much optimism before. Capital markets are becoming increasingly significant for the global economy.

Stock Prices Reacted Positively to the Announcements: At the Tradegate Exchange, the Stock Initially Rose by up to 4% to a New Daily High of $995.38 Following the Announcement of the Results, Before Closing the Trading with an Increase of 3.2% at $70.01.

A significant portion of the new investor funds flowed into low-cost Exchange Traded Funds (ETFs) and index products, which constitute BlackRock's core business. At the same time, the company is actively driving expansion into alternative assets that generate higher fees. The recently completed acquisition of Global Infrastructure Partners, valued at $12.5 billion, has further increased the assets under management to $11.5 trillion and doubled the revenue from managing private-market assets. Additionally, BlackRock expects to complete the acquisition of Preqin, a provider of data for private markets, by the end of 2024.

Chief Financial Officer Martin Small explained that although BlackRock is considering further acquisitions, it will be cautious with its capital: "We do not require M&A to achieve our growth target of five percent annual fee growth." Despite this cautious approach, the company continues to plan strategic acquisitions, such as the potential acquisition of HPS, a private credit manager that was spun out of JPMorgan.

Analysts rated the results positively: Jefferies analyst Daniel Fannon described the results as "strong," while Kyle Sanders from Edward Jones praised the figures as "impressive." He highlighted that the rotation of funds from cash into fixed income and equity products presents a positive short-term impetus.