BlackRock Continues to Push for Private Markets: A Pivot to Boost AUM?

Core Insights - BlackRock Inc. is intensifying its focus on private markets through acquisitions, collaborations, and product diversification, aiming to raise $400 billion for private markets by 2030 [1][11] Group 1: Acquisitions and Investments - The acquisition of Elmtree Funds is part of BlackRock's strategy to enhance its presence in private credit and real estate, following the acquisition of HPS Investment Partners in July 2025 [2][11] - Over the past year, BlackRock has invested more than $28 billion in various sectors, including credit, real estate, data, and infrastructure [2][11] - As of June 30, 2025, BlackRock's private markets assets under management (AUM) reached $215.2 billion, reflecting a 56.1% increase year-over-year, with private markets revenues of $1.1 billion, up 62.8% [5][11] Group 2: Strategic Shifts - BlackRock's CEO Larry Fink indicated a shift from the traditional 60/40 portfolio to a 50/30/20 mix of stocks, bonds, and private assets to achieve better returns [3] - In June 2025, BlackRock announced plans to launch a target-date fund that will include private equity, private credit, and other alternative investments [4] Group 3: Industry Trends - Competitors like T. Rowe Price and Franklin Resources are also expanding into alternative markets to diversify revenue streams and enhance market share [6] - T. Rowe Price has partnered with Goldman Sachs to provide a suite of public and private market solutions, with Goldman investing approximately $1 billion for a 3.5% stake [7][8] - Franklin Resources is collaborating with various firms to enhance its infrastructure investment offerings and has agreed to acquire a majority interest in Apera Asset Management to bolster its direct lending capabilities [10]