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BlackRock 

“Market Cap $53.08 B As of May 2014

At a Glance
  • Industry: Investment Services
  • Founded: 1998
  • Country: United States
  • CEO: Laurence Fink
  • Website: www.blackrock.com
  • Employees: 11,400
  • Sales: $10.44 B
  • Headquarters: New York, New York
Forbes Lists

#240 Global 2000

  • #928 in Sales
  • #213 in Profit
  • #132 in Assets
  • #181 in Market value
Profile

BlackRock, Inc. provides investment management, risk management and advisory services for institutional and retail clients worldwide. The company’s platform enables it to offer active (alpha) investments with index (beta) products and risk management to develop tailored solutions for clients. Its product range includes single- and multi-asset class portfolios investing in equities, fixed income, alternatives and/or money market instruments. The company offers its products directly and through intermediaries in a variety of vehicles, including open-end and closed-end mutual funds, iShares exchange-traded funds and other exchange-traded products, including exchange-traded funds and exchange-traded products, collective investment funds and separate accounts. The company also offers its BlackRock Solutions investment systems, risk management and advisory services primarily to institutional investors. Its clients include retail, high net worth and institutional investors, comprised of pension funds, official institutions, endowments, insurance companies, corporations, financial institutions, central banks and sovereign wealth funds. The company was founded in 1988 and is headquartered in New York, NY.

Ideas, innovations, and growth

Beginning with its founding in 1988, BlackRock’s story over a quarter of a century is about a commitment to putting clients first, innovative thinking, passion for performance and a remarkable collaboration.

Something different: 1988-1994

BlackRock began in 1988 with eight people in a single room who believed they could build a better asset management firm. They shared a determination to put client needs and interests first and a dedication to clear thinking and fact-based, data-driven investing, as well as a passion for understanding and managing risk.

Founded under the umbrella of The Blackstone Group, the firm initially focused primarily on fixed-income. By listening to clients and understanding their unmet needs, the firm was able to develop important early innovations related to closed-end funds, trusts, defined contribution plans and more. One of these was the Blackstone Term Trust, which raised $1 billion and set the business on a path of steady growth and success.

In 1992, the firm adopted the name BlackRock. By the end of that year, BlackRock had $17 billion in assets under management; at the end of 1994, the figure was $53 billion.

Seeds of Diversification: 1995-2004

Now established as BlackRock, in 1995 the firm became a subsidiary of the bank holding company, PNC Financial, and soon began managing open-end mutual funds, including equity funds. The association with PNC gave BlackRock access to PNC’s large distribution network and opportunities for diversification through alliances and mergers with PNC affiliates specializing in equity and other investments.

As it diversified, the firm developed the concept of One BlackRock, which would become a core principle. Where many companies were structured with autonomous business units, BlackRock insisted instead on a coordinated platform. Managing fixed-income, equity and other businesses together, BlackRock put in place a client-centric business model in which the entire firm’s resources and products can be leveraged for the benefit of clients.

In 1999, BlackRock went public with broad employee ownership. By the end of that year, the firm had $165 billion in assets under management and that figure would grow to $342 billion by the end of 2004.

A Diversified Global Asset Manager: 2005 to Today

By 2005 BlackRock had strong fixed-income, equity and advisory businesses. The firm now undertook a series of transformational mergers that added core investment competencies. These acquisitions strengthened BlackRock’s products and services mix with more offerings in equity, multi-asset products and alternatives, and they greatly expanded the firm’s scale and global reach. The biggest of the mergers took place in 2009, when BlackRock acquired Barclays Global Investors, giving the firm additional active, index and exchange traded fund capabilities through iShares.

In this period, BlackRock pioneered multi-asset solutions. The firm became the market leader by bringing together teams that provided a range of client offerings into one unit, combining asset allocation and a host of product solutions that spanned asset classes.

Leveraging earlier work, including BlackRock Solutions, BlackRock began providing impartial advice through Financial Markets Advisory (FMA). The FMA team helps governments, financial institutions and other public and private capital markets participants around the world understand their investments and risk.

Today, BlackRock is the leading global asset manager, serving many of the world’s largest companies, pension funds, foundations, and public institutions as well as millions of people from all walks of life.”

*Information from Forbes.com and Blackrock.com

**Video published on Vimeo by “STALKR