BlackRock Inc chief executive Larry Fink says he doesn’t have any new acquisition target in mind for 2025.
The world’s largest asset manager made three sizable acquisitions last year: an independent infrastructure fund manager (GIP), a global credit investment manager (HPS), and a leading provider of private markets data (Preqin).
But BlackRock is no longer interested in buying any other company this year, Fink revealed in an interview with CNBC on Wednesday.
Shares of the financial services behemoth have gained over 30% since May of 2024.
BlackRock would only make minor investments in 2025
Larry Fink expects the infrastructure sector to “grow the most in the capital markets in the private space” this year. That’s why BlackRock spent $12.5 billion on buying GIP in 2024.
In 2023, the asset manager committed to growing its footprint in two other sectors: private markets data and private credit – and had only two targets in mind, HPS and Preqin.
“The beauty of last year is, we only had three targets, and we acquired all three. I don’t have any new targets going forward,” the chief executive said in the CNBC interview.
Fink agreed that the possibility of BlackRock making minor investments remains on the table but said his firm is unlikely to be in the market buying whole companies in 2025.
BlackRock ended its fiscal Q4 with record AUM
On Wednesday, BlackRock reported its financial results for the fourth quarter as well which handily topped Street estimates as assets under management (AUM) jumped to a record $11.6 trillion.
The New York-listed giant saw long-term net inflows of $201 billion in Q4.
Its net income climbed to $1.67 billion or $10.63 a share in the three months to December 31st.
On an adjusted basis, the asset manager earned $11.93 per share versus analysts at $11.27 only.
Note that BlackRock stock currently pays a dividend yield of 2.03% which makes it all the more attractive to own for income investors.
Does BlackRock stock have any further upside?
BlackRock’s record-setting year on the heels of strong asset inflows “should boost investor confidence,” as per Edward Jones’ senior equity research analyst Kyle Sanders.
Investors will likely take heart in finding out that “the long-awaited great rotation, where investors move off the sidelines and start to re-risk by investing in equity and fixed income products, is beginning to materialize,” she told clients in a note on Wednesday.
Also today, BlackRock said Mark Wiedman – its head of global client business has decided to step down to start a new chapter.
Wiedman was broadly considered a potential successor to Larry Fink – but his departure does not alter the company’s succession plans at all, the chief executive confirmed.
Wall Street analysts currently see a 14% upside on average in BlackRock stock from current levels.
The post BlackRock CEO says no acquisition targets planned for 2025: here’s why appeared first on Invezz