Here are 9 fascinating facts to know about BlackRock, the world's largest asset manager
BlackRock, the world's largest investment manager, has become an increasingly influential Wall Street player in Washington, DC. The firm has hired notable policy-makers over the years, and at least three leaders with the New York-based asset manager on their resumes now hold prominent roles in President Joe Biden's cabinet.
Former BlackRock investment executive Brian Deese leads Biden's National Economic Council, effectively serving as his top advisor on economic matters. Biden also tapped Adewale "Wally" Adeyemo, a former chief of staff to BlackRock chief executive and longtime Democrat Larry Fink, to serve as a top official at the Treasury Department.
Meanwhile Michael Pyle, BlackRock's former global chief investment strategist who had worked in the Obama administration before joining the firm, serves as chief economic advisor to Vice President Kamala Harris.
But unlike Goldman Sachs, a household brand name synonymous with executives leaving finance to go shape public policy, BlackRock isn't as well-known to people outside the investment industry.
Here's a rundown of fast facts to know about the firm.
1. BlackRock oversees $10 trillion, making it the largest money manager in the world.
As of December 2021, BlackRock manages a staggering $10 trillion of other people's money. That's more than the gross domestic product of every country in the world, except for the US and China.
For its largesse in investment management, it's a new firm by Wall Street institution standards. BlackRock was founded in 1988 by Fink, who also serves as the chairman, and seven others, including BlackRock President Robert Kapito and senior advisor Barbara Novick.
BlackRock's makes most of its money handling investments for outside clients, mostly institutions like public pension plans, endowments, and foundations.
Nearly 60% of its overall assets under management are for institutional investors, most of which are products linked to stock markets. It also has a sprawling alternative investments business that oversaw some $265 billion in assets under management as of December, managing products across private equity, private credit, and hedge funds.
2. It runs a massive technology platform that oversees at least $21.6 trillion in assets.
In 1999, BlackRock started selling Aladdin, which analyses and tracks investors' portfolios and can help professional money managers spot risks. Today, it is a juggernaut widely used in the
money management
industry and beyond.
One of the definitive descriptions of Aladdin and all its connections, a February 2020 report in the Financial Times, detailed its sheer scale:
"Vanguard and State Street Global Advisors, the largest fund managers after BlackRock, are users, as are half the top 10 ins...
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Source Article: https://www.businessinsider.com/what-to-know-about-blackrock-larry-fink-biden-cabinet-facts-2020-12
