BlackRock Q4 2025 BlackRock Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 BlackRock Inc Earnings Call
Speaker #2: We call your attention to the fact that BlackRock's actual results may, of course, differ from these statements. As you know, BlackRock has filed reports with the SEC, which list some of the factors that may cause the results of BlackRock to differ materially from what we see today.
Speaker #2: BlackRock assumes no duty and does not undertake to update any forward-looking statements. So, with that, I'll turn it over to Martin.
Operator: Good morning. My name is Jennifer, and I will be your conference facilitator today. At this time, I'd like to welcome everyone to the BlackRock Incorporated Fourth Quarter 2025 earnings teleconference. Our hosts for today's call will be Chairman and Chief Executive Officer Laurence D. Fink, Chief Financial Officer Martin S. Small, President Robert S. Kapito, and General Counsel Christopher J. Meade. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer period. If you'd like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you'd like to withdraw your question, please press star two. Thank you. Mr. Meade, you may begin your conference.
Good morning. My name is Jennifer, and I will be your conference facilitator today. At this time, I'd like to welcome everyone to the BlackRock Incorporated Fourth Quarter 2025 earnings teleconference. Our hosts for today's call will be Chairman and Chief Executive Officer Laurence D. Fink, Chief Financial Officer Martin S. Small, President Robert S. Kapito, and General Counsel Christopher J. Meade. All lines have been placed on mute to prevent any background noise.
Speaker #3: Thanks, Chris. Good morning, and happy New Year to everyone. It's my pleasure to present results for the fourth quarter and full year 2025. Before I turn it over to Larry, I'll review our financial performance and business results.
Speaker #3: Our earnings release discloses both GAAP and as-adjusted financial results. A reconciliation between GAAP and our as-adjusted results is included in today's press release.
After the speaker's remarks, there will be a question-and-answer period. If you'd like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you'd like to withdraw your question, please press star two. Thank you. Mr. Meade, you may begin your conference.
Speaker #3: I'll be focusing primarily on our as-adjusted results. We're closing out one of the strongest years in our history. Clients awarded us nearly $700 billion in net new assets, 9% organic base fee growth, and 16% technology ACV expansion.
Our whole portfolio strategy is winning both mind and wallet share with clients. It's bringing even more momentum to the breadth of our organic growth.
Christopher J. Meade: Good morning, everyone. I'm Chris Meade, the General Counsel of BlackRock. Before we begin, I'd like to remind you that during the course of this call, we may make a number of forward-looking statements. We call your attention to the fact that BlackRock's actual results may, of course, differ from these statements. As you know, BlackRock has filed reports with the SEC, which lists some of the factors that may cause the results of BlackRock to differ materially from what we see today. BlackRock assumes no duty and does not undertake to update any forward-looking statements. With that, I'll turn it over to Martin.
Christopher J. Meade: Good morning, everyone. I'm Chris Meade, the General Counsel of BlackRock. Before we begin, I'd like to remind you that during the course of this call, we may make a number of forward-looking statements. We call your attention to the fact that BlackRock's actual results may, of course, differ from these statements.
Speaker #3: We had nearly 150 products across our ETF and mutual fund ranges with over $1 billion in flows. We had over $24 billion in revenue, alongside nearly $10 billion in operating income.
As you know, BlackRock has filed reports with the SEC, which lists some of the factors that may cause the results of BlackRock to differ materially from what we see today. BlackRock assumes no duty and does not undertake to update any forward-looking statements. With that, I'll turn it over to Martin.
Speaker #3: Both up 50% since 2020, and earnings per share was a new record. Our platform demonstrated resilience and growth even when markets were in turmoil back in April, and captured steep upside when they rallied.
Speaker #3: 2025 was another proof point that BlackRock is a share gainer when there's money in motion. Our 10% increase to our 2026 dividend per share and increase in planned share repurchases to $1.8 billion are driven by our accelerating growth trajectory and platform success in 2025.
Martin S. Small: Thanks, Chris. Good morning and happy New Year to everyone. It's my pleasure to present results for the fourth quarter and full year 2025. Before I turn it over to Larry, I'll review our financial performance and business results. Our earnings release discloses both GAAP and as-adjusted financial results. A reconciliation between GAAP and our as-adjusted results is included in today's press release. I'll be focusing primarily on our as-adjusted results. We're closing out one of the strongest years in our history. Clients awarded us nearly $700 billion in net new assets, 9% organic base fee growth, and 16% technology ACV expansion. Our whole portfolio strategy is winning both mind and wallet share with clients. It's bringing even more momentum to the breadth of our organic growth. We had nearly 150 products across our ETF and mutual fund ranges with over a billion dollars in flows.
Martin S. Small: Thanks, Chris. Good morning and happy New Year to everyone. It's my pleasure to present results for the fourth quarter and full year 2025. Before I turn it over to Larry, I'll review our financial performance and business results. Our earnings release discloses both GAAP and as-adjusted financial results. A reconciliation between GAAP and our as-adjusted results is included in today's press release. I'll be focusing primarily on our as-adjusted results.
Speaker #3: That's our highest dividend increase since 2021 and comes after a record $5 billion payout to shareholders in 2025. Supported by both 9% organic base fee growth and favorable markets, we enter 2026 with a base fees run rate that's approximately 35% higher than our base fees in 2024 and approximately 50% higher than 2023.
We're closing out one of the strongest years in our history. Clients awarded us nearly $700 billion in net new assets, 9% organic base fee growth, and 16% technology ACV expansion. Our whole portfolio strategy is winning both mind and wallet share with clients. It's bringing even more momentum to the breadth of our organic growth. We had nearly 150 products across our ETF and mutual fund ranges with over a billion dollars in flows.
Speaker #3: This stronger entry point enhances our ability to deliver future earnings, return capital to shareholders, and execute on our 2030 ambitions. We delivered 6% or higher organic base fee growth in each quarter of 2025.
Speaker #3: We finished the year with two consecutive quarters of double-digit organic base fee growth, including 12% in the fourth quarter. That growth is broad-based across our systematic franchise, private markets, ETFs, digital assets, cash, and outsourcing.
Martin S. Small: We had over $24 billion in revenue alongside nearly $10 billion in operating income, both up 50% since 2020, and earnings per share was a new record. Our platform demonstrated resilience and growth even when markets were in turmoil back in April and captured steep upside when they rallied. 2025 was another proof point that BlackRock is a share gainer when there's money in motion. Our 10% increase to our 2026 dividend per share, and increase in planned share repurchases to $1.8 billion are driven by our accelerating growth trajectory and platform success in 2025. That's our highest dividend increase since 2021 and comes after a record $5 billion payout to shareholders in 2025. Supported by both 9% organic base fee growth and favorable markets, we enter 2026 with a base fees run rate that's approximately 35% higher than our base fees in 2024 and approximately 50% higher than 2023.
We had over $24 billion in revenue alongside nearly $10 billion in operating income, both up 50% since 2020, and earnings per share was a new record. Our platform demonstrated resilience and growth even when markets were in turmoil back in April and captured steep upside when they rallied. 2025 was another proof point that BlackRock is a share gainer when there's money in motion.
Speaker #3: And it's a cross-capability that we've had for decades, and others that we've built or acquired in the last two years. That gives us confidence we're on the right track with clients, and we have a lot of optimism for the years ahead.
Our 10% increase to our 2026 dividend per share, and increase in planned share repurchases to $1.8 billion are driven by our accelerating growth trajectory and platform success in 2025. That's our highest dividend increase since 2021 and comes after a record $5 billion payout to shareholders in 2025. Supported by both 9% organic base fee growth and favorable markets, we enter 2026 with a base fees run rate that's approximately 35% higher than our base fees in 2024 and approximately 50% higher than 2023.
Speaker #3: You've heard us say it's not that the big are getting bigger; it's that the best are getting bigger. Size and scale are outputs of performance.
Speaker #3: We've wrapped a successful 2025, and now we're moving with speed and scale to go upward from here. We're building leading franchises in newer high-growth markets across the industry.
Speaker #3: Private markets to insurance, private markets to wealth, digital assets, and active ETFs—we think these can all be $500 million revenue generators in the next five years.
Speaker #3: We already have industry-leading margins, and we see real opportunity to drive margin expansion through the FRE growth trajectory of our private markets and our highly scaled foundational businesses.
Martin S. Small: This stronger entry point enhances our ability to deliver future earnings, return capital to shareholders, and execute on our 2030 ambitions. We delivered 6% or higher organic base fee growth in each quarter of 2025. We finished the year with two consecutive quarters of double-digit organic base fee growth, including 12% in the fourth quarter. That growth is broad-based across our systematic franchise, private markets, ETFs, digital assets, cash, and outsourcing. It's across capabilities that we've had for decades and others that we've built or acquired in the last two years. That gives us confidence we're on the right track with clients, and we have a lot of optimism for the years ahead. You've heard us say it's not that the big are getting bigger, it's that the best are getting bigger. Size and scale are outputs of performance.
This stronger entry point enhances our ability to deliver future earnings, return capital to shareholders, and execute on our 2030 ambitions. We delivered 6% or higher organic base fee growth in each quarter of 2025. We finished the year with two consecutive quarters of double-digit organic base fee growth, including 12% in the fourth quarter.
Speaker #3: We enter 2026 with strong momentum and our first year as a fully integrated firm with GIP, Preqin, and HPS. We're pioneering what we believe is the asset management model of the future.
Speaker #3: It's one that seamlessly brings together public and private markets, it interoperates between traditional and decentralized financial ecosystems, and it's powered by technology and data with Aladdin, eFront, and Preqin.
That growth is broad-based across our systematic franchise, private markets, ETFs, digital assets, cash, and outsourcing. It's across capabilities that we've had for decades and others that we've built or acquired in the last two years. That gives us confidence we're on the right track with clients, and we have a lot of optimism for the years ahead. You've heard us say it's not that the big are getting bigger, it's that the best are getting bigger. Size and scale are outputs of performance.
Speaker #3: BlackRock houses the world’s number one ETF franchise, a top-five alternatives platform with more than $675 billion in client assets, half a trillion in target data-leading advisory services, and a tech and data SaaS franchise with nearly $2 billion in revenue.
Speaker #3: Moving to financial results. Full-year revenue of $24 billion was up 19% year over year. Operating income of $9.6 billion was up 18%, and earnings per share of $48.09 increased 10%.
Martin S. Small: We've wrapped a successful 2025, and now we're moving with speed and scale to go upward from here. We're building leading franchises in newer high-growth markets across the industry: private markets to insurance, private markets to wealth, digital assets, and active ETFs. We think these can all be $500 million revenue generators in the next five years. We already have industry-leading margins, and we see real opportunity to drive margin expansion through the FRE growth trajectory of our private markets and our highly scaled foundational businesses. We enter 2026 with strong momentum, and our first year as a fully integrated firm with GIP, Preqin, and HPS. We're pioneering what we believe is the asset management model of the future. It's one that seamlessly brings together public and private markets. It interoperates between traditional and decentralized financial ecosystems, and it's powered by technology and data with Aladdin, eFront, and Preqin.
We've wrapped a successful 2025, and now we're moving with speed and scale to go upward from here. We're building leading franchises in newer high-growth markets across the industry: private markets to insurance, private markets to wealth, digital assets, and active ETFs. We think these can all be $500 million revenue generators in the next five years. We already have industry-leading margins, and we see real opportunity to drive margin expansion through the FRE growth trajectory of our private markets and our highly scaled foundational businesses.
Speaker #3: Fourth quarter revenue of $7 billion was 23% higher year over year, driven by the acquisitions of HPS and Preqin, organic base fee growth over the trailing 12-month period, and the positive impact of market movements on average AUM.
Speaker #3: Quarterly operating income of $2.8 billion was up 22%, while earnings per share of $13.16 increased 10% versus a year ago. EPS also reflected a lower tax rate, lower non-operating income, and a higher share count in the current quarter, linked to the close of the HPS transaction on July 1.
We enter 2026 with strong momentum, and our first year as a fully integrated firm with GIP, Preqin, and HPS. We're pioneering what we believe is the asset management model of the future. It's one that seamlessly brings together public and private markets. It interoperates between traditional and decentralized financial ecosystems, and it's powered by technology and data with Aladdin, eFront, and Preqin.
Speaker #3: Non-operating results for the quarter included $106 million of net investment losses, primarily due to a non-cash mark-to-market loss linked to our minority investment in Circle.
Speaker #3: In mid-December, we contributed a portion of our stake in Circle to our existing donor-advised fund. Following this transaction, we maintain approximately 1.1 million shares of Circle Common Stock, which we'll continue to be marked through investment income.
Martin S. Small: BlackRock houses the world's number one ETF franchise, a top five alternatives platform with more than $675 billion in client assets, half a trillion in target-date AUM, leading advisory services, and a tech and data SaaS franchise with nearly $2 billion in revenue. Moving to financial results. Full year revenue of $24 billion was up 19% year over year. Operating income of $9.6 billion was up 18%, and earnings per share of $48.09 increased 10%. Fourth quarter revenue of $7 billion was 23% higher year over year, driven by the acquisitions of HPS and Preqin, organic base fee growth over the trailing 12-month period, and the positive impact of market movements on average AUM. Quarterly operating income of $2.8 billion was up 22%, while earnings per share of $13.16 increased 10% versus a year ago.
BlackRock houses the world's number one ETF franchise, a top five alternatives platform with more than $675 billion in client assets, half a trillion in target-date AUM, leading advisory services, and a tech and data SaaS franchise with nearly $2 billion in revenue. Moving to financial results. Full year revenue of $24 billion was up 19% year over year.
Speaker #3: Our as-adjusted tax rate for the fourth quarter was approximately 20% and benefited from discrete items. We currently estimate that 25% is a reasonable projected tax run rate for 2026.
Operating income of $9.6 billion was up 18%, and earnings per share of $48.09 increased 10%. Fourth quarter revenue of $7 billion was 23% higher year over year, driven by the acquisitions of HPS and Preqin, organic base fee growth over the trailing 12-month period, and the positive impact of market movements on average AUM. Quarterly operating income of $2.8 billion was up 22%, while earnings per share of $13.16 increased 10% versus a year ago.
Speaker #3: The actual effective tax rate may differ because of non-recurring or discrete items, or potential changes in tax legislation. Fourth quarter base fees and securities lending revenue of $5.3 billion was up 19% year over year.
Speaker #3: Driven by the positive impact of market beta on average AUM, organic base fee growth, and approximately $230 million in base fees from HPS. On an equivalent day count basis, our annualized effective fee rate was approximately one-tenth of a basis point lower compared to the third quarter.
Speaker #3: This decrease was primarily due to higher securities lending revenue in the third quarter, which benefited from specials. We're seeing client demand from our structural growers like private markets, systematic models, OCIO, ETFs, and SMAs, and these capabilities provide positive leverage to average fee rates.
Martin S. Small: EPS also reflected a lower tax rate, lower non-operating income, and a higher share count in the current quarter linked to the close of the HPS transaction on July 1st. Non-operating results for the quarter included $106 million of net investment losses, primarily due to a non-cash mark-to-market loss linked to our minority investment in Circle. In mid-December, we contributed a portion of our stake in Circle to our existing donor-advised fund. Following this transaction, we maintain approximately 1.1 million shares of Circle Common Stock, which will continue to be marked to market through investment income. Our asset-adjusted tax rate for the fourth quarter was approximately 20% and benefited from discrete items. We currently estimate that 25% is a reasonable projected tax run rate for 2026. The actual effective tax rate may differ because of non-recurring or discrete items, or potential changes in tax legislation.
EPS also reflected a lower tax rate, lower non-operating income, and a higher share count in the current quarter linked to the close of the HPS transaction on July 1st. Non-operating results for the quarter included $106 million of net investment losses, primarily due to a non-cash mark-to-market loss linked to our minority investment in Circle. In mid-December, we contributed a portion of our stake in Circle to our existing donor-advised fund.
Speaker #3: The fee yields on new asset flows this year are six to seven times higher than they were in 2023, and are at a premium to our overall fee rate.
Following this transaction, we maintain approximately 1.1 million shares of Circle Common Stock, which will continue to be marked to market through investment income. Our asset-adjusted tax rate for the fourth quarter was approximately 20% and benefited from discrete items. We currently estimate that 25% is a reasonable projected tax run rate for 2026. The actual effective tax rate may differ because of non-recurring or discrete items, or potential changes in tax legislation.
Speaker #3: Fourth quarter performance fees of $754 million increased from a year ago, reflecting higher revenue from alternatives and included $158 million from HPS. Full quarter and full year technology services and subscription revenue each increased 24% year over year, reflecting the successful onboarding of a number of new clients, expanding relationships with existing clients, and the closing of the Preqin transaction.
Speaker #3: Preqin added approximately $65 million and $213 million of revenue in the fourth quarter and full year, respectively. Annual contract value, or ACV, increased 31% year over year, including the impact of Preqin.
Martin S. Small: Fourth quarter base fees and securities lending revenue of $5.3 billion was up 19% year over year, driven by the positive impact of market beta on average AUM, organic base fee growth, and approximately $230 million in base fees from HPS. On an equivalent daycount basis, our annualized effective fee rate was approximately one-tenth of a basis point lower compared to the third quarter. This decrease was primarily due to higher securities lending revenue in the third quarter, which benefited from specials. We're seeing client demand from our structural growers like private markets, systematic models, OCIO, ETFs, and SMAs, and these capabilities provide positive leverage to average fee rates. The fee yields on new asset flows this year are six to seven times higher than they were in 2023 and are at a premium to our overall fee rate.
Fourth quarter base fees and securities lending revenue of $5.3 billion was up 19% year over year, driven by the positive impact of market beta on average AUM, organic base fee growth, and approximately $230 million in base fees from HPS. On an equivalent daycount basis, our annualized effective fee rate was approximately one-tenth of a basis point lower compared to the third quarter.
Speaker #3: ACV increased 16% organically. Total expense increased 19% in
Speaker #1: 2025 , primarily driven by higher compensation , sales , asset and account expense , and G&A expense . Full year employee compensation and benefit expense was up 20% , primarily reflecting higher incentive associated with full year employee compensation and benefits .
This decrease was primarily due to higher securities lending revenue in the third quarter, which benefited from specials. We're seeing client demand from our structural growers like private markets, systematic models, OCIO, ETFs, and SMAs, and these capabilities provide positive leverage to average fee rates. The fee yields on new asset flows this year are six to seven times higher than they were in 2023 and are at a premium to our overall fee rate.
Speaker #1: Expense was up 20% , primarily reflecting higher incentive compensation associated with performance fees , as well as higher operating income . The year over year increase also reflects the impact of onboarding GIP , Proquin , and HP's employees full year expense was up 15% , primarily due to M&A transactions and higher technology investment spend .
Martin S. Small: Fourth quarter performance fees of $754 million increased from a year ago, reflecting higher revenue from alternatives and included $158 million from HPS. Full quarter and full year technology services and subscription revenue each increased 24% year over year, reflecting the successful onboarding of a number of new clients, expanding relationships with existing clients, and the closing of the Preqin transaction. Preqin added approximately $65 million and $213 million of revenue in the fourth quarter and full year, respectively. Annual contract value, or ACV, increased 31% year over year, including the impact of Preqin. ACV increased 16% organically. Total expense increased 19% in 2025, primarily driven by higher compensation, sales asset and account expense, and G&A expense. Full year employee compensation and benefit expense was up 20%, primarily reflecting higher incentive compensation associated with performance fees, as well as higher operating income.
Fourth quarter performance fees of $754 million increased from a year ago, reflecting higher revenue from alternatives and included $158 million from HPS. Full quarter and full year technology services and subscription revenue each increased 24% year over year, reflecting the successful onboarding of a number of new clients, expanding relationships with existing clients, and the closing of the Preqin transaction.
Speaker #1: Our fourth quarter , as adjusted operating margin of 45% was down 50 basis points year over year . Our full year , as operating margin of 44.1% ago , both periods reflect the impact of performance fees and related compensation .
Speaker #1: We continue to deliver margin expansion on recurring fee related earnings , excluding the impact of all performance fees and related compensation . Our adjusted operating margin for the fourth quarter would have been 45.5% , up 30 basis points year over year full year margin .
Preqin added approximately $65 million and $213 million of revenue in the fourth quarter and full year, respectively. Annual contract value, or ACV, increased 31% year over year, including the impact of Preqin. ACV increased 16% organically. Total expense increased 19% in 2025, primarily driven by higher compensation, sales asset and account expense, and G&A expense. Full year employee compensation and benefit expense was up 20%, primarily reflecting higher incentive compensation associated with performance fees, as well as higher operating income.
Speaker #1: Ours would have been 44.9%, 60 basis points higher relative to 2020. As we execute on our organic base fee growth and operating margin ambitions, we will continue to be disciplined in both our hiring and our investments.
Speaker #1: After Annualizing for the impact of Hpse and Proquin , we would expect a mid-single digit percentage increase in G&A . Additionally , we would expect BlackRock's headcount to be broadly flat in 2026 after investing for growth .
Martin S. Small: The year-over-year increase also reflects the impact of onboarding GIP, Preqin, and HPS employees. Full year G&A expense was up 15%, primarily due to M&A transactions and higher technology investment spend. Our fourth quarter as-adjusted operating margin of 45% was down 50 basis points year over year. Our full year as-adjusted operating margin of 44.1% decreased 40 basis points from a year ago. Both periods reflect the impact of performance fees and related compensation. We continue to deliver margin expansion on recurring fee-related earnings. Excluding the impact of all performance fees and related compensation, our adjusted operating margin for the fourth quarter would have been 45.5%, up 30 basis points year over year. Our full year margin would have been 44.9%, 60 basis points higher relative to 2024.
The year-over-year increase also reflects the impact of onboarding GIP, Preqin, and HPS employees. Full year G&A expense was up 15%, primarily due to M&A transactions and higher technology investment spend. Our fourth quarter as-adjusted operating margin of 45% was down 50 basis points year over year. Our full year as-adjusted operating margin of 44.1% decreased 40 basis points from a year ago.
Speaker #1: We returned a record $5 billion to our shareholders through a combination of dividends and share repurchases in 2025. This includes $500 million and $1.6 billion of share repurchases for the fourth quarter and full year, respectively.
Speaker #1: BlackRock's board of directors recently approved a 10% increase to our first quarter 2026 dividend per share. Building on our track record of strong dividend growth and demonstrating confidence in our cash flow generation and durable earnings expansion, that represents a 13% increase in the dollar amount of dividends expected to be paid.
Both periods reflect the impact of performance fees and related compensation. We continue to deliver margin expansion on recurring fee-related earnings. Excluding the impact of all performance fees and related compensation, our adjusted operating margin for the fourth quarter would have been 45.5%, up 30 basis points year over year. Our full year margin would have been 44.9%, 60 basis points higher relative to 2024.
Speaker #1: The board also authorized the repurchase of an additional 7 million shares . Under our share repurchase program . At present , based on capital spending , plans for the year and subject to market and other conditions , we are targeting the purchase of 1.8 billion worth of shares during 2026 .
Martin S. Small: As we execute on our organic base fee growth and operating margin ambitions, we'll continue to be disciplined in both our hiring and our investments. After annualizing for the impact of HPS and Preqin, we would expect a mid-single-digit percent increase in G&A. Additionally, we would expect BlackRock's headcount to be broadly flat in 2026. After investing for growth, we returned a record $5 billion to our shareholders through a combination of dividends, and share repurchases in 2025. This includes $500 million and $1.6 billion of share repurchases for Q4 and full year, respectively. BlackRock's board of directors recently approved a 10% increase to our Q1 2026 dividend per share, building on our track record of strong dividend growth, and demonstrating confidence in our cash flow generation and durable earnings expansion. That represents a 13% increase in the dollar amount of dividends expected to be paid.
As we execute on our organic base fee growth and operating margin ambitions, we'll continue to be disciplined in both our hiring and our investments. After annualizing for the impact of HPS and Preqin, we would expect a mid-single-digit percent increase in G&A. Additionally, we would expect BlackRock's headcount to be broadly flat in 2026. After investing for growth, we returned a record $5 billion to our shareholders through a combination of dividends, and share repurchases in 2025.
Speaker #1: Full-year total net inflows of $698 billion reflected positive flows and organic base fee growth across all asset classes and both active and index.
Speaker #1: iShares led the industry and set a new flows record with $527 billion in 2025, representing 12% organic asset and 13% organic base fee growth.
Speaker #1: Net inflows were diversified across core equity and premium categories like fixed income , active and digital assets . Etps iShares net inflows of 181 billion in the fourth quarter , once again demonstrated strong momentum into year end , supported by seasonal portfolio Reallocations year retail net full inflows of 107 billion were led by the onboarding of the 80 billion SMA assignment from Citi Wealth during the fourth quarter , separate from this assignment , Appirio had its fifth consecutive record year of net inflows , with 15 billion active fixed income added 3 billion and alternatives generated 12,000,000,000 in 2025 .
This includes $500 million and $1.6 billion of share repurchases for Q4 and full year, respectively. BlackRock's board of directors recently approved a 10% increase to our Q1 2026 dividend per share, building on our track record of strong dividend growth, and demonstrating confidence in our cash flow generation and durable earnings expansion. That represents a 13% increase in the dollar amount of dividends expected to be paid.
Martin S. Small: The board also authorized the repurchase of an additional 7 million shares under our share repurchase program. At present, based on capital spending plans for the year and subject to market and other conditions, we are targeting the purchase of $1.8 billion worth of shares during 2026. Full year total net inflows of $698 billion reflected positive flows and organic base fee growth across all asset classes and active and index. iShares led the industry and set a new flows record with $527 billion in 2025, representing 12% organic asset and 13% organic base fee growth. Net inflows were diversified across core equity and premium categories like fixed income, active, and digital assets ETPs. iShares net inflows of $181 billion in the fourth quarter once again demonstrated strong momentum into year-end, supported by seasonal portfolio reallocations.
The board also authorized the repurchase of an additional 7 million shares under our share repurchase program. At present, based on capital spending plans for the year and subject to market and other conditions, we are targeting the purchase of $1.8 billion worth of shares during 2026. Full year total net inflows of $698 billion reflected positive flows and organic base fee growth across all asset classes and active and index.
Speaker #1: BlackRock’s institutional active franchise generated net inflows of $54 billion in 2025, reflecting the onboarding of multiple outsourcing mandates. The above-target close of GIP Five and deployment in private credit. Institutional index net outflows of $119 billion were mainly driven by redemptions from low-fee index equity strategies.
iShares led the industry and set a new flows record with $527 billion in 2025, representing 12% organic asset and 13% organic base fee growth. Net inflows were diversified across core equity and premium categories like fixed income, active, and digital assets ETPs. iShares net inflows of $181 billion in the fourth quarter once again demonstrated strong momentum into year-end, supported by seasonal portfolio reallocations.
Speaker #1: Our scaled private markets platform delivered 40 billion of full year net inflows , led by private credit and infrastructure . We're targeting 400 billion in gross private fundraising markets through 2030 , powered by origination , strong investment performance and the depth of our client relationships .
Speaker #1: Our valuable position as a trusted , long term partner to corporates and sovereigns provides us with unique visibility and insight into capital markets and client activity , enabling differentiated deal flows tailored solutions and long term value creation for our clients and shareholders .
Martin S. Small: Full year retail net inflows of $107 billion were led by the onboarding of the $80 billion SMA assignment from Citi Wealth during the fourth quarter. Separate from this assignment, Aperio had its fifth consecutive record year of net inflows with $15 billion, active fixed income added $3 billion, and alternatives generated $12 billion in 2025. BlackRock's institutional active franchise generated net inflows of $54 billion in 2025, reflecting the onboarding of multiple outsourcing mandates, the above target close of GIP V, and deployment in private credit. Institutional index net outflows of $119 billion were mainly driven by redemptions from low-fee index equity strategies. Our scaled private markets platform delivered $40 billion of full year net inflows led by private credit, and infrastructure. We're targeting $400 billion in gross private markets fundraising through 2030, powered by origination, strong investment performance, and the depth of our client relationships.
Full year retail net inflows of $107 billion were led by the onboarding of the $80 billion SMA assignment from Citi Wealth during the fourth quarter. Separate from this assignment, Aperio had its fifth consecutive record year of net inflows with $15 billion, active fixed income added $3 billion, and alternatives generated $12 billion in 2025. BlackRock's institutional active franchise generated net inflows of $54 billion in 2025, reflecting the onboarding of multiple outsourcing mandates, the above target close of GIP V, and deployment in private credit.
Speaker #1: Finally, BlackRock Cash Management saw $74 billion of net inflows in the fourth quarter and $131 billion in 2025, driven by US government, international prime, and Circle Reserve funds.
Speaker #1: BlackRock's platform is anchored by growth engines tied to the long term expansion of global capital fast growing client and product channels . The opportunity ahead is inspiring to reshape portfolios for more complex markets , to deepen partnerships with clients , and to deliver durable , profitable growth for our shareholders .
Institutional index net outflows of $119 billion were mainly driven by redemptions from low-fee index equity strategies. Our scaled private markets platform delivered $40 billion of full year net inflows led by private credit, and infrastructure. We're targeting $400 billion in gross private markets fundraising through 2030, powered by origination, strong investment performance, and the depth of our client relationships.
Speaker #1: We enter 2026 with the combined strength of Blackrock , GIP and Now Proquin . all one Blackrock , and we're excited to share our growth with clients , employees and shareholders .
Speaker #1: I'll turn it over to Larry.
Speaker #2: Thank you . Martin . Good morning everyone and happy New Year . Thank you for joining . We enter 2026 with accelerating momentum across our entire platform .
Martin S. Small: Our valuable position as a trusted long-term partner to corporates and sovereigns provides us with unique visibility and insight into capital markets and client activity, enabling differentiated deal flows, tailored solutions, and long-term value creation for our clients and shareholders. Finally, BlackRock Cash Management saw $74 billion of net inflows in the fourth quarter and $131 billion in 2025, driven by US government, international prime, and Circle reserve funds. BlackRock's platform is anchored by growth engines tied to the long-term expansion of global capital markets and fast-growing client and product channels. The opportunity ahead is inspiring to reshape portfolios for more complex markets, to deepen partnerships with clients, and to deliver durable, profitable growth for our shareholders. We enter 2026 with the combined strength of BlackRock, GIP, HPS, and Preqin, now all one BlackRock, and we're excited to share our growth with clients, employees, and shareholders.
Our valuable position as a trusted long-term partner to corporates and sovereigns provides us with unique visibility and insight into capital markets and client activity, enabling differentiated deal flows, tailored solutions, and long-term value creation for our clients and shareholders. Finally, BlackRock Cash Management saw $74 billion of net inflows in the fourth quarter and $131 billion in 2025, driven by US government, international prime, and Circle reserve funds.
Speaker #2: It will be the first full year with the combined strength of BlackRock, GIP, HTS, and Proquin. We're coming off the strongest year and quarter of net inflows in our history.
Speaker #2: BlackRock clients awarded BlackRock with nearly $700 billion in new assets in 2025, including $342 billion in the fourth quarter, and the consistency of our results stands out even more over the long term, with nearly $2.5 trillion of net inflows over the last five years.
BlackRock's platform is anchored by growth engines tied to the long-term expansion of global capital markets and fast-growing client and product channels. The opportunity ahead is inspiring to reshape portfolios for more complex markets, to deepen partnerships with clients, and to deliver durable, profitable growth for our shareholders. We enter 2026 with the combined strength of BlackRock, GIP, HPS, and Preqin, now all one BlackRock, and we're excited to share our growth with clients, employees, and shareholders. I'll turn it over to Larry.
Speaker #2: Our pipeline of business has across regions, products, and broadened—spanning public and private markets, technology and data, and client and client channels.
Speaker #2: We're seeing excellent fundraising activity . We have an ambitious 2026 fundraising plan diversified across infrastructure , equity and debt . Private financing solutions and multi alternatives .
Martin S. Small: I'll turn it over to Larry. Thank you, Martin. Good morning, everyone, and happy new year. Thank you for joining. We enter 2026 with accelerating momentum across our entire platform. It will be the first full year with a combined strength of BlackRock, GIP, HPS, and Preqin. We're coming off the strongest year and quarter of net inflows in our history. Clients awarded BlackRock with nearly $700 billion in new assets in 2025, including $342 billion in the fourth quarter. The consistency of our results stands out even more over the long term, with nearly $2.5 trillion of net inflows over the last five years. Our pipeline of business has broadened across products and regions, spanning public and private markets, technology and data, and client channels. We're seeing excellent fundraising activity. We have an ambitious 2026 fundraising plan diversified across infrastructure, equity, and debt, private financing solutions, and multi-alternatives.
Laurence D. Fink: Thank you, Martin. Good morning, everyone, and happy new year. Thank you for joining. We enter 2026 with accelerating momentum across our entire platform. It will be the first full year with a combined strength of BlackRock, GIP, HPS, and Preqin. We're coming off the strongest year and quarter of net inflows in our history. Clients awarded BlackRock with nearly $700 billion in new assets in 2025, including $342 billion in the fourth quarter.
Speaker #2: Our client relationships have never been stronger and deeper. We're a scale operator in public and private markets, investments, and technology. That's significantly enhancing our position with clients worldwide.
Speaker #2: We're building off accelerating growth. Over the course of 2025, we delivered 6% or higher organic base fee growth each quarter, and we ended the year with 12% organic base fee growth and 16% technology.
Speaker #2: AC and ACV growth in the fourth quarter. These growth rates are both four points higher than last year, and 9% full year organic base fee growth represents $1.5 billion of net new base fees.
The consistency of our results stands out even more over the long term, with nearly $2.5 trillion of net inflows over the last five years. Our pipeline of business has broadened across products and regions, spanning public and private markets, technology and data, and client channels. We're seeing excellent fundraising activity. We have an ambitious 2026 fundraising plan diversified across infrastructure, equity, and debt, private financing solutions, and multi-alternatives.
Speaker #2: That means we enter 2026 with base fees approaching $21 billion, 13% higher than 2025. And we delivered a premium 45% operating margin.
Speaker #2: Our scale and Aladdin technology fuel growth and help push down our marginal cost. We're now on an upward trajectory in our margins on fee-occurring, reoccurring earnings as we continue to drive growth in private markets and scale businesses like ETFs and systematic equities.
Martin S. Small: Our client relationships have never been stronger and deeper. We're a scale operator in public and private markets, investments, and technology. That's significantly enhancing our position with clients worldwide. We're building off accelerating growth over the course of 2025. We delivered 6% or higher organic base fee growth each quarter, and we ended the year with 12% organic base fee growth and 16% technology ACV growth in the fourth quarter. These growth rates are both a four points higher than last year, and 9% full year organic base fee growth represents $1.5 billion of net new base fees. That means we enter 2026 with base fees approaching $21 billion, 13% higher than 2025. We delivered a premium 45% operating margin. Our scale and Aladdin technology fuels growth and helps push down our marginal cost.
Our client relationships have never been stronger and deeper. We're a scale operator in public and private markets, investments, and technology. That's significantly enhancing our position with clients worldwide. We're building off accelerating growth over the course of 2025. We delivered 6% or higher organic base fee growth each quarter, and we ended the year with 12% organic base fee growth and 16% technology ACV growth in the fourth quarter.
Speaker #2: Our belief in our future growth, increasing profitability, and durability of cash flow led us to increase the dividend per share by 10% and step up planned share repurchases.
Speaker #2: Over the last ten years . We delivered a 10% compounded annual growth rate in our dividend and over a 15% annual return on our repurchases , and we're confident than ever that our in our model and the outsized opportunity we see across multiple growth engines , our foundational businesses like iShares are unlocking new markets , like in active ETFs and digital assets at the same time , we're a leader in emerging trends like private markets to wealth .
These growth rates are both a four points higher than last year, and 9% full year organic base fee growth represents $1.5 billion of net new base fees. That means we enter 2026 with base fees approaching $21 billion, 13% higher than 2025. We delivered a premium 45% operating margin. Our scale and Aladdin technology fuels growth and helps push down our marginal cost.
Speaker #2: For one, tokenization and private market data in private markets. Our investments in infrastructure and private credit and alts, the wealth, underpin our ambitions to raise $400 billion in private markets by 2030.
Martin S. Small: We're in an upward trajectory in our margins on fee-related recurring earnings as we continue to drive growth in private markets and scale businesses like ETFs and systematic equities. Our belief in our future growth, increasing profitability, and durability of cash flow led us to increase the dividend per share by 10% and step up planned share repurchases. Over the last 10 years, we delivered a 10% compounded annual growth rate in our dividend and over a 15% annual return on our repurchases. And we're more confident than ever in our model and the outsized opportunity we see across multiple growth engines. Our foundational businesses like iShares are unlocking new markets like active ETFs and digital assets. At the same time, we're a leader in emerging trends like private markets to wealth, 401(k)s, tokenization, and private market data.
We're in an upward trajectory in our margins on fee-related recurring earnings as we continue to drive growth in private markets and scale businesses like ETFs and systematic equities. Our belief in our future growth, increasing profitability, and durability of cash flow led us to increase the dividend per share by 10% and step up planned share repurchases. Over the last 10 years, we delivered a 10% compounded annual growth rate in our dividend and over a 15% annual return on our repurchases.
Speaker #2: Blackhawk Blackrock has already managing $3 trillion on behalf of Insurance , wealth and Ocio clients . We have a significant opportunity to deliver better outcomes and experiences for clients and private market allocations , and for our shareholders that shift represents new private markets , AUM and potentially over $1 billion in new base fees .
Speaker #2: For example , Blackrock is the largest general account manager for insurers , with 700 billion in AUM , with Hgps , we're now also one of the largest asset based finance and high grade managers .
And we're more confident than ever in our model and the outsized opportunity we see across multiple growth engines. Our foundational businesses like iShares are unlocking new markets like active ETFs and digital assets. At the same time, we're a leader in emerging trends like private markets to wealth, 401(k)s, tokenization, and private market data.
Speaker #2: We're in about 20 late-stage conversations to help insurers build more dynamic and diversified portfolios across public and private markets. Seminary in wealth.
Speaker #2: We're focused on access to private markets. We're bringing together strong investment performance, track records with BlackRock, and a scaled global distribution model.
Speaker #2: We have the largest team in the wholesaling industry, covering every corner of the United States marketplace. We have very strong relationships in private banks in Europe.
Martin S. Small: In private markets, our investments in infrastructure, private credit, and alts to wealth underpin our ambitions to raise $400 billion in private markets by 2030. BlackRock is already managing $3 trillion on behalf of insurance, wealth, and OCIO clients. We have a significant opportunity to deliver better outcomes and experiences for clients in private market allocations. For our shareholders, that shift represents new private markets AUM and potentially over $1 billion in new base fees. For example, BlackRock is the largest general account manager for insurers with $700 billion in AUM. With HPS, we're now also one of the largest asset-based finance and high-grade managers. We're in about 20 late-stage conversations to help insurers build more dynamic and diversified portfolios across public and private markets. Similarly, in wealth, we're focused on expanding access to private markets.
In private markets, our investments in infrastructure, private credit, and alts to wealth underpin our ambitions to raise $400 billion in private markets by 2030. BlackRock is already managing $3 trillion on behalf of insurance, wealth, and OCIO clients. We have a significant opportunity to deliver better outcomes and experiences for clients in private market allocations. For our shareholders, that shift represents new private markets AUM and potentially over $1 billion in new base fees.
Speaker #2: Our more than $1 trillion of wealth platform spans and spans end clients , whole portfolios for models and SMAs to ETFs and private markets .
Speaker #2: We're also a technology provider through Aladdin Wealth, which brings institutional-quality portfolio construction right to the desktops of our financial advisors.
Speaker #2: We continue to expand and diversify distribution of HBS, non-traded BDC to US, wirehouses, and Arias, and we believe model portfolios will be another unlock.
For example, BlackRock is the largest general account manager for insurers with $700 billion in AUM. With HPS, we're now also one of the largest asset-based finance and high-grade managers. We're in about 20 late-stage conversations to help insurers build more dynamic and diversified portfolios across public and private markets. Similarly, in wealth, we're focused on expanding access to private markets.
Speaker #2: We're also planning to widen our product range through a through H an series family of funds that would be led by the flagship eight H Lin , alongside junior Capital , real assets , triple net lease Multi-district credit and secondaries , and co-investment strategies .
Speaker #2: We plan to bring all the building blocks to serve wealth investors through coordinated multi-alts portfolios. Then, in retirement, we're seeing important progress towards a framework to include private assets in target date funds.
Martin S. Small: We're bringing together strong investment performance track records with BlackRock's scaled global distribution model. We have the largest wholesaling team in the industry covering every corner of the United States marketplace. We have very strong relationships in private banks in Europe. Our more than $1 trillion of wealth platform spans end clients' whole portfolios from models and SMAs to ETFs and private markets. We're also a technology provider through Aladdin Wealth, which brings institutional quality portfolio construction right to the desktops of our financial advisors. We continue to expand and diversify distribution of HPS non-traded BDC to US wirehouses and RIAs. We believe model portfolios will be another unlock. We're also planning to widen our product range through an H-series family of funds that would be led by the flagship HLEN alongside junior capital, real assets, triple net lease, multi-strat credit, and secondaries and co-investment strategies.
We're bringing together strong investment performance track records with BlackRock's scaled global distribution model. We have the largest wholesaling team in the industry covering every corner of the United States marketplace. We have very strong relationships in private banks in Europe. Our more than $1 trillion of wealth platform spans end clients' whole portfolios from models and SMAs to ETFs and private markets. We're also a technology provider through Aladdin Wealth, which brings institutional quality portfolio construction right to the desktops of our financial advisors.
Speaker #2: We expect to launch our first LifePath, our target date fund with private markets, later this year. Most Americans' only experience with capital markets is through their 401(k) plan.
Speaker #2: I said many times that helping workers build and spend their retirement savings is one of the greatest challenges of our generation. We've long advocated for better retirement solutions and easier access to investment options.
We continue to expand and diversify distribution of HPS non-traded BDC to US wirehouses and RIAs. We believe model portfolios will be another unlock. We're also planning to widen our product range through an H-series family of funds that would be led by the flagship HLEN alongside junior capital, real assets, triple net lease, multi-strat credit, and secondaries and co-investment strategies.
Speaker #2: BlackRock has also championed early childhood savings accounts and the policies that make them possible, and we're encouraged by and supportive of the launch of these accounts, united in the States for retirement savings.
Speaker #2: Savers, there's a real opportunity to bring additional returns and diversification to investors through private markets. BlackRock will be at the forefront with our leading DCIO business.
Speaker #2: Our $600 billion Lifepath franchise, top five alternative platforms, and definitely Proquin. We explained. We expect plan sponsors will need standardized benchmarking and performance data to validate their plan choices, and Proquin can be the central provider.
Martin S. Small: We plan to bring all the building blocks to serve wealth investors through coordinated multi-alts portfolios. Then in retirement, we're seeing important progress towards a framework to include private assets and target date funds. We expect to launch our first LifePath target date fund with private markets later this year. Most Americans' only experience with capital markets is through their 401(k) plan. I said many times that helping workers build and spend their retirement savings is one of the greatest challenges of our generation. We've long advocated for better retirement solutions and easier access to investment options. BlackRock has also championed early childhood savings accounts and the policies that make them possible. We're encouraged by and supportive of the launch of these accounts in the United States. For retirement savers, there's a real opportunity to bring additional returns and diversification to investors through private markets.
We plan to bring all the building blocks to serve wealth investors through coordinated multi-alts portfolios. Then in retirement, we're seeing important progress towards a framework to include private assets and target date funds. We expect to launch our first LifePath target date fund with private markets later this year. Most Americans' only experience with capital markets is through their 401(k) plan.
Speaker #2: Our leadership in all of these areas distinguishes Plan BlackRock with sponsors and policymakers. We've always been a leader in retirement and a first mover in developing new solutions in retirement.
Speaker #2: We started innovating LifePath Paycheck in 2018, and it's been the fastest growing lifetime income target date strategy in the defined contribution market.
I said many times that helping workers build and spend their retirement savings is one of the greatest challenges of our generation. We've long advocated for better retirement solutions and easier access to investment options. BlackRock has also championed early childhood savings accounts and the policies that make them possible. We're encouraged by and supportive of the launch of these accounts in the United States. For retirement savers, there's a real opportunity to bring additional returns and diversification to investors through private markets.
Speaker #2: We believe it will be the default retirement investment strategy. Guaranteed income and private markets are not two separate conversations. BlackRock can bring it all together.
Speaker #2: Our vision is not just for incremental addition of private It's markets . the design of an optimal target date solution , one that combines public markets , private markets and guaranteed income .
Speaker #2: Like like Lifepath paycheck . Blackrock has long standing relationships and decades of experience in working with plan sponsors and building client first retirement solutions for for their members .
Martin S. Small: BlackRock will be at the forefront with our leading DCIO business, our $600 billion LifePath franchise, top five alternative platforms, and definitely Preqin. We expect plan sponsors will need standardized benchmarking and performance data to validate their plan choices, and Preqin can be the central provider. Our leadership in all of these areas distinguishes BlackRock with plan sponsors and policymakers. We've always been a leader in retirement and a first mover in developing new solutions in retirement. We started innovating LifePath Paycheck in 2018, and it's been the fastest growing lifetime income target date strategy in the defined contribution market. We believe it will be the default retirement investment strategy. Guaranteed income and private markets are not two separate conversations. BlackRock can bring it all together. Our vision is not just for incremental addition of private markets.
BlackRock will be at the forefront with our leading DCIO business, our $600 billion LifePath franchise, top five alternative platforms, and definitely Preqin. We expect plan sponsors will need standardized benchmarking and performance data to validate their plan choices, and Preqin can be the central provider. Our leadership in all of these areas distinguishes BlackRock with plan sponsors and policymakers.
Speaker #2: We're a bit over a year into closing our GIP transaction , and we're already seeing synergies through our combined expertise and relationships . GIP five closed above its $25 billion target in July , and our AI partnership , which was was not part of the deal model , continues to attract significant capital .
We've always been a leader in retirement and a first mover in developing new solutions in retirement. We started innovating LifePath Paycheck in 2018, and it's been the fastest growing lifetime income target date strategy in the defined contribution market. We believe it will be the default retirement investment strategy. Guaranteed income and private markets are not two separate conversations. BlackRock can bring it all together. Our vision is not just for incremental addition of private markets.
Speaker #2: AIP has raised over 12.5 billion from partnership founders and clients . Our initial target is a is to mobilize and deploy $30 billion of equity capital with a potential of reaching 100 billion , including debt .
Speaker #2: More broadly , we're seeing excellent progress across the range of infrastructure strategies , including mid-cap and emerging markets , infra equity and investment grade , high yield and credit sensitive infra debt .
Speaker #2: The current cash flow and inflation-protected return profile of infrastructure makes it an attractive sector for our clients, especially those saving for retirement.
Martin S. Small: It's the design of an optimal target date solution, one that combines public markets, private markets, and guaranteed income like LifePath Paycheck. BlackRock has long-standing relationships and decades of experience in working with plan sponsors and building client-first retirement solutions for their members. We're a bit over a year into closing our GIP transaction, and we're already seeing synergies through our combined expertise and relationships. GIP V closed above its $25 billion target in July, and our AI partnership, which was not part of the deal model, continues to attract significant capital. AIP has raised over $12.5 billion from partnership founders and clients. Our initial target is to mobilize and deploy $30 billion of equity capital with a potential of reaching $100 billion, including debt.
It's the design of an optimal target date solution, one that combines public markets, private markets, and guaranteed income like LifePath Paycheck. BlackRock has long-standing relationships and decades of experience in working with plan sponsors and building client-first retirement solutions for their members.
Speaker #2: More broadly, income-oriented strategies are a critical component of our clients' portfolios. BlackRock manages over $4.5 trillion in assets across both public fixed income, cash, and private credit.
We're a bit over a year into closing our GIP transaction, and we're already seeing synergies through our combined expertise and relationships. GIP V closed above its $25 billion target in July, and our AI partnership, which was not part of the deal model, continues to attract significant capital. AIP has raised over $12.5 billion from partnership founders and clients. Our initial target is to mobilize and deploy $30 billion of equity capital with a potential of reaching $100 billion, including debt.
Speaker #2: This means we can provide an integrated fixed income solution for clients that delivers scale , benefits . In 2025 , we generated over 45 billion of net inflows across our high performing active income franchise , led by Rick Rieder , we believe up to be another year where returns may be driven primarily by income rather than price appreciation .
Speaker #2: We're well positioned to capture flows with strong performance and differentiated strategies across municipals, high yield, total return, and unconstrained fixed income strategies.
Martin S. Small: More broadly, we're seeing excellent progress across the range of infrastructure strategies, including mid-cap and emerging markets infra equity and investment grade, high yield, and credit-sensitive infra debt. The current cash flow and inflation-protected return profile of infrastructure makes it an attractive sector for our clients, especially those saving for retirement. More broadly, income-oriented strategies are a critical component of our clients' portfolios. BlackRock manages over $4.5 trillion in assets across both public fixed income, cash, and private credit. This means we can provide an integrated fixed income solution for clients that delivers scale benefits. In 2025, we generated over $45 billion of net inflows across our high-performing active fixed income franchise led by Rick Rieder. We believe 2026 is shaping up to be another year where returns may be driven primarily by income rather than price appreciation.
More broadly, we're seeing excellent progress across the range of infrastructure strategies, including mid-cap and emerging markets infra equity and investment grade, high yield, and credit-sensitive infra debt. The current cash flow and inflation-protected return profile of infrastructure makes it an attractive sector for our clients, especially those saving for retirement. More broadly, income-oriented strategies are a critical component of our clients' portfolios.
Speaker #2: And we're leveraging active ETFs to provide access to our portfolio managers inside, along with the benefits of the ETF wrapper. Our active ETFs drove more than $50 billion in net inflows in 2025, nearly tripling their assets in the last year.
Speaker #2: Rick's flexible active income ETF, Bank BINK, and our systematic US equity factor rotation ETF, DELED, led our active ETF flows for the year. DNF was the highest inflowing active ETF in the industry, with $14 billion of net inflows.
BlackRock manages over $4.5 trillion in assets across both public fixed income, cash, and private credit. This means we can provide an integrated fixed income solution for clients that delivers scale benefits. In 2025, we generated over $45 billion of net inflows across our high-performing active fixed income franchise led by Rick Rieder. We believe 2026 is shaping up to be another year where returns may be driven primarily by income rather than price appreciation.
Speaker #2: It is our flagship of our systematic equity platform. Overall, our systematic equity franchise raised over $50 billion in 2025, even as the active equity industry saw another year of outflows.
Speaker #2: Our systematic investments have been using data and AI for 20 years. We've invested in this business, and today its IP delivers alpha to clients and helps portfolio managers across BlackRock to invest better.
Martin S. Small: We're well-positioned to capture flows with strong performance and differentiated strategies across municipals, high yield, total return, and unconstrained fixed income strategies. We're leveraging active ETFs to provide access to our portfolio managers' insight along with the benefits of the ETF wrapper. Our active ETFs drove more than $50 billion in net inflows in 2025, nearly tripling their assets in the last year. Rick's Flexible Income ETF, BINC, and our systematic US equity factor rotation ETF, DYNF, led our active ETF flows for the year. DYNF was the highest inflowing active ETF in the industry with $14 billion of net inflows. It is our flagship of our systematic equity platform. Overall, our systematic equity franchise raised over $50 billion in 2025, even as the active equity industry saw another year of outflows. Our systematic investments have been using data and AI for 20 years.
We're well-positioned to capture flows with strong performance and differentiated strategies across municipals, high yield, total return, and unconstrained fixed income strategies. We're leveraging active ETFs to provide access to our portfolio managers' insight along with the benefits of the ETF wrapper. Our active ETFs drove more than $50 billion in net inflows in 2025, nearly tripling their assets in the last year.
Speaker #2: As more investors are looking at how to use AI for investments, we already have one of the best platforms utilizing AI and big data to drive thousands of alpha signals.
Speaker #2: We're optimistic about our systematic platform, continued double-digit organic base fee growth potential, and its position as a bright spot in the active equity industry.
Rick's Flexible Income ETF, BINC, and our systematic US equity factor rotation ETF, DYNF, led our active ETF flows for the year. DYNF was the highest inflowing active ETF in the industry with $14 billion of net inflows. It is our flagship of our systematic equity platform. Overall, our systematic equity franchise raised over $50 billion in 2025, even as the active equity industry saw another year of outflows. Our systematic investments have been using data and AI for 20 years.
Speaker #2: iShares continues to be an innovation engine for the for for Blackrock . iShares remains the market leader in ETFs assets and organic base in terms of fee growth .
Speaker #2: Served and in product countries lineup. 2025 was another record year for iShares, with $527 billion of net inflows compared to 2000, with just 40 ETFs.
Speaker #2: BlackRock iShares set out to revolutionize investing, and over those 25 years, iShares has led the way in democratization of access to the growth of capital markets.
Speaker #2: Blackrock shaped the industry , and we continue to expand its choice and access for investors around the world . We brought . Us investors access to international markets , and we introduced ETFs to Europe .
Martin S. Small: We've invested in this business, and today its IP delivers alpha to clients and helps portfolio managers across BlackRock to invest better. As more investors are looking at how to use AI for investments, we already have one of the best platforms utilizing AI and big data to drive thousands of alpha signals. We're optimistic about our systematic platform, continued double-digit organic base fee growth potential, and its position as a bright spot in the active equity industry. iShares continues to be an innovation engine for BlackRock. iShares remains the market leader in ETFs in terms of organic assets and base fee growth, country served, and in product lineup. 2025 was another record year for iShares with $527 billion of net inflows. In 2000, with just 40 ETFs, BlackRock's iShares set out to revolutionize investing.
We've invested in this business, and today its IP delivers alpha to clients and helps portfolio managers across BlackRock to invest better. As more investors are looking at how to use AI for investments, we already have one of the best platforms utilizing AI and big data to drive thousands of alpha signals. We're optimistic about our systematic platform, continued double-digit organic base fee growth potential, and its position as a bright spot in the active equity industry.
Speaker #2: We launched the world's first bond ETF. We provide over 1,700 ETFs today, more than six times the next largest issuer. And we're focused on providing investors value for their money while driving growth and margin expansion for our shareholders.
Speaker #2: iShares was about $300 billion when we announced our acquisition in 2009. Today, it's $5.5 trillion, and iShares revenues have more than quadrupled to over $8 billion.
iShares continues to be an innovation engine for BlackRock. iShares remains the market leader in ETFs in terms of organic assets and base fee growth, country served, and in product lineup. 2025 was another record year for iShares with $527 billion of net inflows. In 2000, with just 40 ETFs, BlackRock's iShares set out to revolutionize investing.
Speaker #2: iShares is delivering growth both through core channels, newer and premium initiatives like active ETFs, digital assets, and an international markets in Europe ETF.
Speaker #2: Net inflows of $136 billion was approximately 50% higher than 2024, and we're seeing more individuals coming to iShares through digitally enabled offerings and monthly savings plans.
Martin S. Small: Over those 25 years, iShares has led the way in democratization of access to the growth of capital markets. BlackRock shaped the industry, and we continued to expand choice and access for investors around the world. We brought US investors access to international markets, and we introduced ETFs to Europe. We launched the world's first bond ETF. We provide over 1,700 ETFs today, more than six times the next largest issuer. We're focused on providing investors value for their money while driving growth and margin expansion for our shareholders. iShares AUM was about $300 billion when we announced our acquisition in 2009. Today, it's $5.5 trillion, and iShares revenues have more than quadrupled to over $8 billion. iShares is delivering growth both through core channels and newer premium initiatives like active ETFs, digital assets, and in international markets.
Over those 25 years, iShares has led the way in democratization of access to the growth of capital markets. BlackRock shaped the industry, and we continued to expand choice and access for investors around the world. We brought US investors access to international markets, and we introduced ETFs to Europe. We launched the world's first bond ETF. We provide over 1,700 ETFs today, more than six times the next largest issuer.
Speaker #2: seeing similar trends in We're India , where our Geo Blackrock joint venture operates through a digital first direct to consumer model . Geo Blackrock raised 2 billion upon launch , six times the previous industry record , and now manages 12 funds spanning cash index systematic equities on behalf of nearly 400 institutions and already retail 1 million Indian more than investors .
Speaker #2: We’re seeing more momentum in attracting great international clients and connectivity with markets, both in Asia and in Latam. We saw double-digit organic base fee growth in 2025. Growth in Asia was led by our Active Wealth Strategies and $30 billion of ETF net inflows across our locally listed and global ETF range.
We're focused on providing investors value for their money while driving growth and margin expansion for our shareholders. iShares AUM was about $300 billion when we announced our acquisition in 2009. Today, it's $5.5 trillion, and iShares revenues have more than quadrupled to over $8 billion. iShares is delivering growth both through core channels and newer premium initiatives like active ETFs, digital assets, and in international markets.
Speaker #2: In Latin America . Our local presence is similarly resonating through our onshore ETFs and wealth offerings . And in the Middle East , we have a strong history as a as a trusted advisor to countries looking to allocate capital or to build out their own local markets .
Martin S. Small: In Europe, ETF net inflows of $136 billion was approximately 50% higher than 2024. We're seeing more individuals coming to iShares through digitally enabled offerings and monthly savings plans. We're seeing similar trends in India, where our Jio BlackRock joint venture operates through a digital-first direct-to-consumer model. Jio BlackRock raised $2 billion upon launch, six times the previous industry record, and now manages 12 funds spanning cash, index, and systematic equities on behalf of nearly 400 institutions and already more than 1 million Indian retail investors. More broadly, we're seeing great momentum and connectivity with clients in international markets. Both in Asia and in LatAm, we saw double-digit organic base fee growth in 2025. Growth in Asia was led by our active wealth strategies and $30 billion of ETF net inflows across our locally listed and global ETF range.
In Europe, ETF net inflows of $136 billion was approximately 50% higher than 2024. We're seeing more individuals coming to iShares through digitally enabled offerings and monthly savings plans. We're seeing similar trends in India, where our Jio BlackRock joint venture operates through a digital-first direct-to-consumer model. Jio BlackRock raised $2 billion upon launch, six times the previous industry record, and now manages 12 funds spanning cash, index, and systematic equities on behalf of nearly 400 institutions and already more than 1 million Indian retail investors.
Speaker #2: It is one of our fastest growing regions . Our technology powers in the unites all of our platform and all our work . The fact that Blackrock is the largest user of Aladdin allows us to stay attuned to changes in the marketplace and adapt Aladdin for our clients .
Speaker #2: Today , we're enabling our clients to more easily manage their exposures through end to end integration across public and private markets . 16% technology ACV growth reflected several innovative multi-product wins , which will drive future revenues through Proquin .
More broadly, we're seeing great momentum and connectivity with clients in international markets. Both in Asia and in LatAm, we saw double-digit organic base fee growth in 2025. Growth in Asia was led by our active wealth strategies and $30 billion of ETF net inflows across our locally listed and global ETF range.
Speaker #2: We're expanding access to actionable private market data, giving investors the analytics they need to build strong and reliable portfolios. The BlackRock platform is comprehensive.
Speaker #2: It's global. We're a leader in public markets. We're a leader in private markets, and we are a leader in technology and data.
Martin S. Small: In Latin America, our local presence is similarly resonating through our onshore ETFs and wealth offerings. In the Middle East, we have a strong history as a trusted advisor to countries looking to allocate capital or to build out their own local markets. It is one of our fastest-growing regions. Our Aladdin technology powers and unites all of our platform and all our work. The fact that BlackRock is the largest user of Aladdin allows us to stay attuned to changes in the marketplace and adapt Aladdin for our clients. Today, we're enabling our clients to more easily manage their exposures through end-to-end integration across public and private markets. 16% technology ACV growth reflected several innovative multi-product wins, which will drive future revenues. Through Preqin, we're expanding access to actionable private market data, giving investors the analytics they need to build strong and reliable portfolios.
In Latin America, our local presence is similarly resonating through our onshore ETFs and wealth offerings. In the Middle East, we have a strong history as a trusted advisor to countries looking to allocate capital or to build out their own local markets. It is one of our fastest-growing regions. Our Aladdin technology powers and unites all of our platform and all our work. The fact that BlackRock is the largest user of Aladdin allows us to stay attuned to changes in the marketplace and adapt Aladdin for our clients.
Speaker #2: We're a foundational provider in the traditional financial markets and the evolving decentralized financial ecosystem . Most importantly , we bring it all together to deliver Blackrock to our clients in a comprehensive , consistent , determined way .
Speaker #2: We're entering 2026 with elevated momentum, and we're positioned ahead of big future opportunities. We ended the year with 12% organic base fee growth, record flows, and a new AUM high at $14 trillion.
Speaker #2: This already lifts our base fee entry-level rate by 13%. We are confident in our organic base fee growth ambitions. We plan to raise a cumulative $400 billion in private markets by 2030.
Today, we're enabling our clients to more easily manage their exposures through end-to-end integration across public and private markets. 16% technology ACV growth reflected several innovative multi-product wins, which will drive future revenues. Through Preqin, we're expanding access to actionable private market data, giving investors the analytics they need to build strong and reliable portfolios.
Speaker #2: We're focused on our margins and driving profitable growth. This all should translate to shareholder value through higher earnings, and then multiple expansion.
Speaker #2: I'd like to thank our employees for the work they do on every day, on behalf of our clients—each and every client.
Martin S. Small: The BlackRock platform is comprehensive. It's global. We're a leader in public markets. We're a leader in private markets, and we are a leader in technology and data. We're a foundational provider in the traditional financial markets and the evolving decentralized financial ecosystem. Most importantly, we bring it all together to deliver BlackRock to our clients in a comprehensive, consistent, determined way. We're entering 2026 with elevated momentum, and we're positioned ahead of big future opportunities. We ended the year with 12% organic base fee growth, record flows, and a new AUM high at $14 trillion. This already lifts our base fee entry level rate by 13%. We are confident in our organic base fee growth ambitions. We plan to raise a cumulative $400 billion in private markets by 2030. We're focused on our margins and driving profitable growth.
The BlackRock platform is comprehensive. It's global. We're a leader in public markets. We're a leader in private markets, and we are a leader in technology and data. We're a foundational provider in the traditional financial markets and the evolving decentralized financial ecosystem. Most importantly, we bring it all together to deliver BlackRock to our clients in a comprehensive, consistent, determined way.
Speaker #2: We stand by as a fiduciary. When we do well for our clients, we also do well for our employees. And then we do well for our shareholders.
Speaker #2: I believe they're all they'll all be beneficiaries of our future growth . Operator . Let's open it up for questions . .
Speaker #3: At this time , I'd like to remind everyone , in order to ask a question , please press star . Then the number one on your telephone keypad , if you do ask a question , take your please phone off its speaker .
We're entering 2026 with elevated momentum, and we're positioned ahead of big future opportunities. We ended the year with 12% organic base fee growth, record flows, and a new AUM high at $14 trillion. This already lifts our base fee entry level rate by 13%. We are confident in our organic base fee growth ambitions. We plan to raise a cumulative $400 billion in private markets by 2030. We're focused on our margins and driving profitable growth.
Speaker #3: Setting and use your handset to avoid any potential feedback . Please limit yourself to one question . If you have a follow up , reenter the queue .
Speaker #3: We'll pause for just a moment to compile the Q&A roster. Your first question comes from Craig Siegenthaler of Bank of America.
Speaker #2: Hi, Craig, happy New Year.
Speaker #4: Morning, good Larry. Happy New Year, and I have to congratulate you on the record base for organic growth because, you know, 12% is pretty impressive for a $14 trillion manager.
Martin S. Small: This all should translate to shareholder value through higher earnings and then multiple expansion. I'd like to thank our employees for the work they do every day on behalf of our clients. Each and every client that we stand by as a fiduciary. When we do well for our clients, we also do well for our employees, and then we do well for our shareholders. I believe they'll all be beneficiaries of our future growth. Operator, let's open it up for questions. At this time, I'd like to remind everyone, in order to ask a question, please press star, then the number one on your telephone keypad. If you do ask a question, please take your phone off its speaker setting and use your handset to avoid any potential feedback. Please limit yourself to one question. If you have a follow-up, please re-enter the queue.
This all should translate to shareholder value through higher earnings and then multiple expansion. I'd like to thank our employees for the work they do every day on behalf of our clients. Each and every client that we stand by as a fiduciary. When we do well for our clients, we also do well for our employees, and then we do well for our shareholders. I believe they'll all be beneficiaries of our future growth. Operator, let's open it up for questions.
Speaker #2: Well, I hope it's—I hope it's going to be impressive when we're a larger manager than $14 trillion.
Speaker #4: As we look ahead to 2026 , can you flush out you know what you're all seeing and thinking on the net flow pipeline and a sort of follow up would be your money market business , which which is not a new modern business has done really , really well over the last five years .
Operator: At this time, I'd like to remind everyone, in order to ask a question, please press star, then the number one on your telephone keypad. If you do ask a question, please take your phone off its speaker setting and use your handset to avoid any potential feedback. Please limit yourself to one question. If you have a follow-up, please re-enter the queue. We'll pause for just a moment to compile the Q&A roster. Your first question comes from Craig Siegenthaler of Bank of America.
Speaker #4: rates Higher has been a factor . There . But with the fed cutting , do you see flows reversing in this business ? And if it does , where do you think that liquidity goes ?
Speaker #1: Thanks , Craig . It's Martin . Happy New Year just . Let me by saying that start organic base fee growth continues to outperform our five plus percent baseline target 10% in Q3 , 12% print in Q4 , 9% for the year .
Martin S. Small: We'll pause for just a moment to compile the Q&A roster. Your first question comes from Craig Siegenthaler of Bank of America. Hi, Craig. Happy New Year. Good morning, Larry. Happy New Year. And I have to congratulate you on the record base fee organic growth because 12% is pretty impressive for a $14 trillion manager. Well, I hope it's going to be impressive when we're a much larger manager than $14 trillion. As we look ahead to 2026, can you flesh out what you're all seeing and thinking on the net flow pipeline? And a sort of follow-up would be your money market business, which is not a new modern business, has done really, really well over the last five years. Higher rates have been a factor there. But with the Fed cutting, do you see flows reversing in this business?
Speaker #1: And it's the momentum , I think that really a lot of gives us energy . The growth has ticked higher each quarter . We were 1% to start 2020 for six plus percent each quarter year , this and then two back to ending with back quarters that are double digits .
Laurence D. Fink: Hi, Craig. Happy New Year.
Craig Siegenthaler: Good morning, Larry. Happy New Year. And I have to congratulate you on the record base fee organic growth because 12% is pretty impressive for a $14 trillion manager. Well, I hope it's going to be impressive when we're a much larger manager than $14 trillion. As we look ahead to 2026, can you flesh out what you're all seeing and thinking on the net flow pipeline?
Speaker #1: That means clients want to do more business and are giving more business to Blackrock . I think the success we've had with this structural growth strategy , it's driving strength and it's doing it across market environments , market environments , in an all weather way and with more growth coming from our pipeline of private markets , systematic strategies , models , SMAs , digital assets , we think we can power organic base fee growth .
And a sort of follow-up would be your money market business, which is not a new modern business, has done really, really well over the last five years. Higher rates have been a factor there. But with the Fed cutting, do you see flows reversing in this business? And if it does, where do you think that liquidity goes?
Speaker #1: That's more six consistently 7% or higher . And in support of market environments . I think like Q4 , where there's some risk on sentiment for higher fee international precision exposures , private markets that can tilt even higher .
Martin S. Small: And if it does, where do you think that liquidity goes? Thanks, Craig. It's Martin. Happy New Year. Let me just start by saying that organic base fee growth continues to outperform our 5-plus% baseline target, 10% in Q3, 12% print in Q4, 9% for the year. And it's the momentum, I think, that really gives us a lot of energy. The growth has ticked higher each quarter. We were 1% to start 2024, 6-plus% each quarter this year, and then ending with two back-to-back quarters that are at double digits. That means clients want to do more business and are giving more business to BlackRock. I think the success we've had with this structural growth strategy, it's driving strength and is doing it across market environments in an all-weather way.
Speaker #1: But we've always talked about our strategy being grounded in the whole portfolio. It's always been about breadth and serving every client's corner of a portfolio.
Martin S. Small: Thanks, Craig. It's Martin. Happy New Year. Let me just start by saying that organic base fee growth continues to outperform our 5-plus% baseline target, 10% in Q3, 12% print in Q4, 9% for the year. And it's the momentum, I think, that really gives us a lot of energy. The growth has ticked higher each quarter. We were 1% to start 2024, 6-plus% each quarter this year, and then ending with two back-to-back quarters that are at double digits.
Speaker #1: This year we had really excellent breadth in organic base fee growth , and we're seeing that same breadth in our pipeline , our fundraising plan is diversified across infrastructure , private financing solutions , multi alternatives .
Speaker #1: And I think 2026, to your point on money funds, it's shaping up to be the year of a steeper yield curve.
Speaker #1: And we think that the era of easy to fund looks to be in some fading. We think that bond returns are going to be driven more by income rather than rate moves or spread compression.
That means clients want to do more business and are giving more business to BlackRock. I think the success we've had with this structural growth strategy, it's driving strength and is doing it across market environments in an all-weather way.
Speaker #1: And I think, even though cash is always going to be an allocation in a well-balanced portfolio, we'd expect that rate cuts are going to cause market yields to fall, and that some of the best opportunities for investors to be locking in bond yields are going to be in the intermediate term.
Martin S. Small: And with more growth coming from our pipeline of private markets, systematic strategies, models, SMAs, and digital assets, we think we can power organic base fee growth that's more consistently 6-7% or higher. And in supportive market environments, I think like Q4, where there's some risk-on sentiment for higher fee international, precision exposures, and private markets, that can tilt even higher. But we've always talked about our strategy being grounded in the whole portfolio. It's always been about breadth and serving every corner of a client's portfolio. This year, we had really excellent breadth in organic base fee growth, and we're seeing that same breadth in our pipeline. Our fundraising plan is diversified across infrastructure, private financing solutions, and multi-alternatives. And I think 2026, to your point on money funds, it's shaping up to be the year of a steeper yield curve.
And with more growth coming from our pipeline of private markets, systematic strategies, models, SMAs, and digital assets, we think we can power organic base fee growth that's more consistently 6-7% or higher. And in supportive market environments, I think like Q4, where there's some risk-on sentiment for higher fee international, precision exposures, and private markets, that can tilt even higher. But we've always talked about our strategy being grounded in the whole portfolio.
Speaker #1: Bonds. I think if the bond team was, say, here, they'd say there's a generational opportunity to earn high quality, steady income in the front and middle of the yield curve using that full toolkit and fixed income credits.
Speaker #1: Securitized government bonds , munis , active and index , and we're seeing that our platform . We saw than more 80 billion of fixed income flows in Q4 , and more than 40 billion outside the new city mandate .
It's always been about breadth and serving every corner of a client's portfolio. This year, we had really excellent breadth in organic base fee growth, and we're seeing that same breadth in our pipeline. Our fundraising plan is diversified across infrastructure, private financing solutions, and multi-alternatives. And I think 2026, to your point on money funds, it's shaping up to be the year of a steeper yield curve.
Speaker #1: You know, iShares bonds had $52 billion in Q4, $175 billion for the year. That's 18% organic growth for the year. We manage over $3 trillion in fixed income.
Speaker #1: So we think we can meet clients with fixed income offerings across sectors and durations, wherever they need it, and to do it in a vehicle that works best for them.
Speaker #1: an That's ETF . It's a separate account , a mutual fund , or even yield oriented exposures . Being a top CLO issuer and manager .
Martin S. Small: And we think that era of easy 2a-7 fund income looks to be fading. We think that bond returns are going to be driven more by income rather than rate moves or spread compression. And I think even though cash is always going to be an allocation in well-balanced portfolios, we'd expect that rate cuts are going to cause money market yields to fall. And that's some of the best opportunities for investors to be locking in bond yields are going to be in intermediate-term bonds. I think if the bond team was here, they'd say there's a generational opportunity to earn high-quality, steady income in the front, middle of the yield curve using that full toolkit and fixed income: credits, securitized, government bonds, munis, active, and index. And we're seeing that energy on our platform.
And we think that era of easy 2a-7 fund income looks to be fading. We think that bond returns are going to be driven more by income rather than rate moves or spread compression. And I think even though cash is always going to be an allocation in well-balanced portfolios, we'd expect that rate cuts are going to cause money market yields to fall.
Speaker #1: And by blending public and private fixed income through direct lending, BDCs like H lend, our field on new assets to the firm in this pipeline is running six or seven times higher than the field on new assets in '23, and we think clients want to do more with BlackRock across the platform.
And that's some of the best opportunities for investors to be locking in bond yields are going to be in intermediate-term bonds. I think if the bond team was here, they'd say there's a generational opportunity to earn high-quality, steady income in the front, middle of the yield curve using that full toolkit and fixed income: credits, securitized, government bonds, munis, active, and index. And we're seeing that energy on our platform.
Speaker #1: We saw it in the 2025 activity and in the early momentum in '26, so it gives us confidence that we're on the right track and gives us a lot of energy about what 2026 can look like on the organic growth front.
Speaker #2: Let me just add one more point. As global capital markets grow, cash is going to grow alongside of it. So the base holdings of cash will be elevated as long as the global capital markets continue to grow, if you—
Martin S. Small: We saw more than $80 billion of fixed income flows in Q4 and more than $40 billion outside the new CIT mandate. iShares bonds had $52 billion in Q4, $175 billion. That's 18% organic growth for the year. We manage over $3 trillion in fixed income. So we think we can meet clients with fixed income offerings across sectors and durations wherever they need it, and to do it in the vehicle that works best for them. That's an ETF. It's a separate account, a mutual fund, or even yield-oriented exposures, being a top CLO issuer and manager, and by blending public and private fixed income through direct lending BDCs like HLEN. Our flow of new assets to the firm in this pipeline is running six or seven times higher than the flow of new assets in 2023.
We saw more than $80 billion of fixed income flows in Q4 and more than $40 billion outside the new CIT mandate. iShares bonds had $52 billion in Q4, $175 billion. That's 18% organic growth for the year. We manage over $3 trillion in fixed income. So we think we can meet clients with fixed income offerings across sectors and durations wherever they need it, and to do it in the vehicle that works best for them.
Speaker #2: And overlay if tokenization becomes more real and the opportunity to have a tokenized money market fund alongside tokenizing other assets, I actually believe you're going to see probably above-trend holdings in cash.
Speaker #2: That being said , I agree with everything that Martin said . We're going to see much more . You're going to see more and more investors going out the curve , especially if the yield curve becomes steeper and steeper , which probably is going to be the outcome .
That's an ETF. It's a separate account, a mutual fund, or even yield-oriented exposures, being a top CLO issuer and manager, and by blending public and private fixed income through direct lending BDCs like HLEN. Our flow of new assets to the firm in this pipeline is running six or seven times higher than the flow of new assets in 2023.
Speaker #2: But I, but I, but I think we have to look at the overall scale of the capital markets and its growth globally.
Speaker #2: And that is one of the foundational reasons why cash holdings will they look larger than ever , which they certainly are . But I think a capital markets grows , so does holdings in capital markets .
Martin S. Small: And we think clients want to do more with BlackRock across the platform. We saw it in the 2025 activity and in the early momentum in 2026. So it gives us confidence that we're on the right track and gives us a lot of energy about what 2026 can look like on the organic growth front. Let me just add one more point. As global capital markets grow, cash is going to grow alongside of it. So the base holdings of cash will be elevated as long as the global capital markets continue to grow. And if you overlay, if tokenization becomes more real and the opportunity to have a tokenized money market fund alongside tokenizing other assets, I actually believe you're going to see probably a big trend holdings in cash. That being said, I agree with everything Martin said.
And we think clients want to do more with BlackRock across the platform. We saw it in the 2025 activity and in the early momentum in 2026. So it gives us confidence that we're on the right track and gives us a lot of energy about what 2026 can look like on the organic growth front.
Speaker #2: Cash . And I think that is important . There's an important connection between that . And it's not it's cash is just not an outcome of people are nervous and holding and are not looking to do it as a capital markets grows and as more people's wallets are in the capital markets , the role of the money market fund just grows .
Laurence D. Fink: Let me just add one more point. As global capital markets grow, cash is going to grow alongside of it. So the base holdings of cash will be elevated as long as the global capital markets continue to grow. And if you overlay, if tokenization becomes more real and the opportunity to have a tokenized money market fund alongside tokenizing other assets, I actually believe you're going to see probably a big trend holdings in cash. That being said, I agree with everything Martin said.
Speaker #2: And I think that is one of the foundational reasons why we continue to believe that money market holdings will continue to be quite large.
Speaker #3: Your next question comes from Michael Cyprus with Morgan Stanley.
Martin S. Small: We're going to see much more. You're going to see more and more investors going out the curve, especially if the yield curve becomes steeper and steeper, which probably is going to be the outcome. I think we have to look at the overall scale of the capital markets and its growth globally. That is one of the foundational reasons why cash holdings will look larger than ever, which they certainly are. I think as the capital markets grow, so does holdings in capital markets catch. I think that is important. There's an important connection between that. Cash is just not an outcome of people are nervous and holding and are not looking to do it. As the capital markets grow and as more people's wallets are in the capital markets, the role of the money market fund just grows.
We're going to see much more. You're going to see more and more investors going out the curve, especially if the yield curve becomes steeper and steeper, which probably is going to be the outcome. I think we have to look at the overall scale of the capital markets and its growth globally. That is one of the foundational reasons why cash holdings will look larger than ever, which they certainly are.
Speaker #5: Hey , good morning .
Speaker #2: Michael: How are you?
Speaker #5: Great . Thanks for taking the question . I wanted to ask one about Asia . hoping you I was could speak to your priorities across your footprint in Asia , local partnership from your in India to initiatives you have in Japan , among other countries .
Speaker #5: How are you looking to accelerate growth and expand contribution from Asia over the next couple of years? And what aspects might be most meaningful to the overall firm?
Speaker #2: Well, I would say first and foremost, Asia capital markets grew faster than the US capital markets. There were more IPOs in Asia, especially in Hong Kong.
I think as the capital markets grow, so does holdings in capital markets catch. I think that is important. There's an important connection between that. Cash is just not an outcome of people are nervous and holding and are not looking to do it. As the capital markets grow and as more people's wallets are in the capital markets, the role of the money market fund just grows. I think that is one of the foundational reasons why we continue to believe that money market holdings will continue to be quite large.
Speaker #2: So let's just start with that foundational base. The capital markets are going faster. There, you're seeing historical changes in Japan because of NISA accounts and retirement accounts.
Speaker #2: You're just seeing more of wealth entering the capital markets out of the banking system. And that just represents more and more opportunities.
Martin S. Small: I think that is one of the foundational reasons why we continue to believe that money market holdings will continue to be quite large. Your next question comes from Michael Cyprys with Morgan Stanley. Hey, good morning, Larry. Happy New Year, Michael. How are you? Great. Thanks for taking the question. Wanted to ask one about Asia. I was hoping you could speak to your priorities across your footprint in Asia, from your local partnership in India to initiatives you have in Japan, among other countries. How are you looking to accelerate growth and expand contribution from Asia over the next couple of years, and what aspects might be most meaningful to the overall firm? Well, I would say first and foremost, Asia capital markets grew faster than the US capital markets. More IPOs in Asia, especially in Hong Kong. Let's just start with that foundational base.
Speaker #2: So Japan has been an exceptional platform for , for for growth . The insurance industry in Japan , the pension fund industry as , as the accounts grow .
Operator: Your next question comes from Michael Cyprys with Morgan Stanley.
Michael Cyprys: Hey, good morning, Larry.
Speaker #2: So that's just one one really good foundational example . As I said , the IPOs in Hong Kong and the the scale of wealth management in Hong Kong and Singapore , the wealth that is being generated in Southeast Asia , all leads to bigger opportunities , not just bigger opportunities to manage the money , but bigger opportunities to invest like GIP the airports of invested in of Malaysia .
Laurence D. Fink: Happy New Year, Michael. How are you?
Michael Cyprys: Great. Thanks for taking the question. Wanted to ask one about Asia. I was hoping you could speak to your priorities across your footprint in Asia, from your local partnership in India to initiatives you have in Japan, among other countries. How are you looking to accelerate growth and expand contribution from Asia over the next couple of years, and what aspects might be most meaningful to the overall firm?
Laurence D. Fink: Well, I would say first and foremost, Asia capital markets grew faster than the US capital markets. More IPOs in Asia, especially in Hong Kong. Let's just start with that foundational base. The capital markets are going faster there. You're seeing historical changes in Japan because the NISA accounts and retirement accounts, you're just seeing more of wealth entering the capital markets out of the banking system.
Speaker #2: In India , I believe we have the best single platform to grow with in a India Geo . Blackrock partnership . I talked about the growth in 2025 , but we have we believe that the the transmission of the growth of the capital markets in India is just at the very beginning .
Martin S. Small: The capital markets are going faster there. You're seeing historical changes in Japan because the NISA accounts and retirement accounts, you're just seeing more of wealth entering the capital markets out of the banking system. And that just represents more and more opportunities. So Japan has been an exceptional platform for growth. The insurance industry in Japan, the pension fund industry, as the NISA accounts grow. So that's just one really good foundational example. As I said, the IPOs in Hong Kong and the scale of wealth management in Hong Kong and Singapore, the wealth that is being generated in Southeast Asia all leads to bigger opportunities, not just bigger opportunities to manage the money, but bigger opportunities to invest, like GIP invested in the airports of Malaysia. In India, I believe we have the best single platform to grow in India with a Jio BlackRock partnership.
Speaker #2: Historically, Indians kept most of their money either in gold or in cash, and I think the opportunity to develop a self-directed retirement platform in India is real.
And that just represents more and more opportunities. So Japan has been an exceptional platform for growth. The insurance industry in Japan, the pension fund industry, as the NISA accounts grow. So that's just one really good foundational example.
Speaker #2: as And the as the as the platform grows in terms of retirement , the opportunities for us are very large . But even in places like in the in Saudi Arabia , there's conversations going on now to , to really build a pillar .
As I said, the IPOs in Hong Kong and the scale of wealth management in Hong Kong and Singapore, the wealth that is being generated in Southeast Asia all leads to bigger opportunities, not just bigger opportunities to manage the money, but bigger opportunities to invest, like GIP invested in the airports of Malaysia. In India, I believe we have the best single platform to grow in India with a Jio BlackRock partnership.
Speaker #2: There are two retirement systems, and then obviously a pillar three, and we're engaged in those conversations and opportunities. So historically, we looked at a lot of these markets, who were exporters of capital.
Speaker #2: But now, in many cases, they're importers of capital. But more importantly, they're developing their own capital markets. This is a trend that I've been talking about for years.
Speaker #2: And I think it's just that we're at the early, early stages of the growth of the capital markets, in every place in the world.
Martin S. Small: I talked about the growth in 2025, but we believe that the transmission of the growth of the capital markets in India is just at the very beginning. Historically, Indians kept most of their money either in gold or in cash. I think the opportunities to develop a self-directed retirement platform in India is real. As the platform grows in terms of retirement, the opportunities for us are very large. But even in places like in Saudi Arabia, there's conversations going on now to really build a pillar two retirement system there and then obviously a pillar three. We're engaged in those conversations and opportunities. Historically, we looked at a lot of these markets who were exporters of capital, but now in many cases, they're importers of capital, but more importantly, they're developing their own capital markets.
I talked about the growth in 2025, but we believe that the transmission of the growth of the capital markets in India is just at the very beginning. Historically, Indians kept most of their money either in gold or in cash. I think the opportunities to develop a self-directed retirement platform in India is real. As the platform grows in terms of retirement, the opportunities for us are very large.
Speaker #2: you look at our growth rates , If the double digit rates in growth bases in in Latam , it is another example of the growth of wealth and the opportunities we have .
Speaker #2: And so the key is BlackRock is going to grow as long as the world and the global capital markets grow. But what I would clearly say with 25 indicates.
Speaker #2: And what twenty-six offers is the growth of these capital markets are very beneficial for platforms like BlackRock. And we are involved in these conversations.
Speaker #2: We're building our platform in every country, and I believe this is one of the real foundational opportunities for us in the future.
But even in places like in Saudi Arabia, there's conversations going on now to really build a pillar two retirement system there and then obviously a pillar three. We're engaged in those conversations and opportunities. Historically, we looked at a lot of these markets who were exporters of capital, but now in many cases, they're importers of capital, but more importantly, they're developing their own capital markets.
Speaker #3: Your next question comes from Mike Brown with UBS.
Speaker #2: Good morning Mike .
Speaker #6: Hi . Good morning . Hi . Good morning . Happy New Year .
Speaker #2: Happy New Year to you.
Speaker #6: So Larry , you touched on the insurance channel in your in your prepared remarks . And Blackrock is a major player in the space .
Speaker #6: And it's about 5% of your AUM today . But certainly competition seems to be rising in the space . Can you just talk a little bit about how your differentiated offering a full spectrum cash to private credit differentiates here , and maybe unpack your comments about how the demand for the channel is shaping up here in 2026 .
Martin S. Small: This is a trend that I've been talking about for years. I think it's just that we're at the early stages of the growth of the capital markets in every place in the world. If you look at our growth rates, the double-digit growth rates in base fees in LATAM, it is another example of the growth of wealth and the opportunities we have. So the key is BlackRock is going to grow as long as the world and the global capital markets grow. But what I would clearly say what 2025 indicates and what 2026 offers is the growth of these capital markets are very beneficial for platforms like BlackRock. We are involved in these conversations. We're building our platform in each and every country. I believe this is one of the real foundational opportunities for us in the future.
This is a trend that I've been talking about for years. I think it's just that we're at the early stages of the growth of the capital markets in every place in the world. If you look at our growth rates, the double-digit growth rates in base fees in LATAM, it is another example of the growth of wealth and the opportunities we have.
Speaker #1: Thanks . Maybe I'll start Martin and then I know Larry will add some color , so I'd start with , yes , you know , the balance sheets of the world's largest insurance companies were traditionally invested in public fixed income .
So the key is BlackRock is going to grow as long as the world and the global capital markets grow. But what I would clearly say what 2025 indicates and what 2026 offers is the growth of these capital markets are very beneficial for platforms like BlackRock. We are involved in these conversations. We're building our platform in each and every country. I believe this is one of the real foundational opportunities for us in the future.
Speaker #1: BlackRock has been very successful at capturing those 'today we're' allocations, and is the largest insurance company general account manager in the industry with $700 billion in assets, more than 450.
Speaker #1: Insurance relationships . HSPs also manages over 60 billion of credit assets for over 125 insurance companies . And I think with our combined platform , we're better positioned than ever to be a high grade solutions provider .
Martin S. Small: Your next question comes from Mike Brown with UBS. Good morning, Mike. Hi, good morning. Hi, good morning. Happy New Year. Happy New Year to you. So Larry, you touched on the insurance channel in your prepared remarks, and BlackRock is a major player in the space, and it's about 5% of your AUM today. But certainly, competition seems to be rising in the space. Can you just talk a little bit about how your differentiated offering, like a full spectrum cash to private credit, differentiates here? Maybe unpack your comments about how the demand for the channel is shaping up here in 2026. Thanks. Maybe I'll start, Martin, and then I know Larry will add some color. So I'd start with, yes, the balance sheets of the world's largest insurance companies. We're traditionally invested in public fixed income. BlackRock has been very successful at capturing those allocations.
Operator: Your next question comes from Mike Brown with UBS.
Laurence D. Fink: Good morning, Mike.
Martin S. Small: Hi, good morning.
Mike Brown: Hi, good morning. Happy New Year.
Speaker #1: We also have service to the largest insurance companies on our Aladdin platform, as well as an array of middle office services and accounting services.
Laurence D. Fink: Happy New Year to you.
Mike Brown: So Larry, you touched on the insurance channel in your prepared remarks, and BlackRock is a major player in the space, and it's about 5% of your AUM today. But certainly, competition seems to be rising in the space. Can you just talk a little bit about how your differentiated offering, like a full spectrum cash to private credit, differentiates here? Maybe unpack your comments about how the demand for the channel is shaping up here in 2026.
Speaker #1: We think that credit building great and public private private portfolios is a very important growth vector within private markets . And there's an opportunity for growth with asset based finance and private high grade with insurance companies .
Speaker #1: Just the penetration in this market is much smaller when compared to the corporate credit market. We have over 20 conversations right now where we're working on high-grade SMAs with leading insurers and building grade private, high portfolios.
Martin S. Small: Thanks. Maybe I'll start, Martin, and then I know Larry will add some color. So I'd start with, yes, the balance sheets of the world's largest insurance companies. We're traditionally invested in public fixed income. BlackRock has been very successful at capturing those allocations.
Speaker #1: A number are in later stages. We'd hope to start seeing deployments pull through the second half of 2026, and we're really focused on three things with them.
Speaker #1: The delivering first is better outcomes for our insurance clients by working with them to migrate something on the order of 10% of their existing public fixed income assets into private high grade.
Martin S. Small: Today, we're the largest insurance company general account manager in the industry with $700 billion in assets, more than 450 insurance relationships. HPS also manages over $60 billion of credit assets for over 125 insurance companies. I think with our combined platform, we're better positioned than ever to be a high-grade solutions provider. We also have service to the largest insurance companies on our Aladdin platform, as well as an array of middle office services and accounting services. We think that private credit and building great public-private portfolios is a very important growth vector within private markets. There's an opportunity for growth with asset-based finance and private high-grade with insurance companies. Just the penetration in this market is much smaller when compared to the corporate credit market.
Today, we're the largest insurance company general account manager in the industry with $700 billion in assets, more than 450 insurance relationships. HPS also manages over $60 billion of credit assets for over 125 insurance companies. I think with our combined platform, we're better positioned than ever to be a high-grade solutions provider.
Speaker #1: So think of a $700 billion base migrating to $70 billion, on the order of that, in private high grade. The second is high-expanding grade mandates, meaning new assets and winning new assets with clients away from our existing book.
We also have service to the largest insurance companies on our Aladdin platform, as well as an array of middle office services and accounting services. We think that private credit and building great public-private portfolios is a very important growth vector within private markets. There's an opportunity for growth with asset-based finance and private high-grade with insurance companies. Just the penetration in this market is much smaller when compared to the corporate credit market.
Speaker #1: And the third is also pursuing strategic partnerships. Minority investments to increase the pool of insurance assets managed here at BlackRock. Similar to the minority investment and strategic alliance that we announced with Viridian last year.
Speaker #1: I think on our competitive advantages, I'd note that insurance company asset management—it's a highly customized effort, working with clients every day.
Speaker #1: It's not one of these mandates that's, 'Give me a benchmark and I'll beat it and give you a monthly report.' Teams are basically insourced by the insurance company to be looking at cash flows, to be thinking about credit, to be thinking about the intersection of accounting and capital, and managing those portfolios.
Martin S. Small: We have over 20 conversations right now where we're working on high-grade SMAs with leading insurers and building private high-grade portfolios. A number are in later stages. We'd hope to start seeing deployments pull through the second half of 2026. We're really focused on three things with them. The first is delivering better outcomes for our insurance clients by working with them to migrate something on the order of 10% of their existing public fixed income assets into private high-grade. So think of a $700 billion base migrating to $70 billion on the order of that in private high-grade. The second is expanding high-grade mandates, meaning new assets and winning new assets with clients away from our existing book.
We have over 20 conversations right now where we're working on high-grade SMAs with leading insurers and building private high-grade portfolios. A number are in later stages. We'd hope to start seeing deployments pull through the second half of 2026. We're really focused on three things with them.
Speaker #1: It is a highly interactive day to day thing . So being able effectively to blend turnkey , full service capabilities for insurance companies , that's a key competitive advantage for Blackrock .
The first is delivering better outcomes for our insurance clients by working with them to migrate something on the order of 10% of their existing public fixed income assets into private high-grade. So think of a $700 billion base migrating to $70 billion on the order of that in private high-grade. The second is expanding high-grade mandates, meaning new assets and winning new assets with clients away from our existing book.
Speaker #1: Integrating fixed income, private credit, Aladdin Accounting, and middle office services makes working with BlackRock a performance enhancer and a scale enabler.
Speaker #1: So, there's no doubt that this space has become more competitive, especially in private high grade. But I think our experience is that insurance companies want a service-full partner, and that we're well positioned to play that role given our track record in public fixed income and technology, and world-class capabilities in private credit.
Martin S. Small: The third is also pursuing strategic partnerships, minority investments to increase the pool of insurance assets managed here at BlackRock, similar to the minority investment and strategic alliance that we announced with Viridium last year. I think on our competitive advantages, I'd note that insurance company asset management, it's a highly customized effort working with clients every day. It's not one of these mandates that's give me a benchmark and I'll beat it and give you a monthly report. Teams are basically insourced by the insurance company to be looking at cash flows, to be thinking about credit, to be thinking about the intersection of accounting and capital, and managing those portfolios. It is a highly interactive day-to-day thing. Being able effectively to blend turnkey full-service capabilities for insurance companies, that's a key competitive advantage for BlackRock.
The third is also pursuing strategic partnerships, minority investments to increase the pool of insurance assets managed here at BlackRock, similar to the minority investment and strategic alliance that we announced with Viridium last year. I think on our competitive advantages, I'd note that insurance company asset management, it's a highly customized effort working with clients every day. It's not one of these mandates that's give me a benchmark and I'll beat it and give you a monthly report.
Speaker #3: Your next question comes from Alex Blostein with Goldman Sachs.
Speaker #2: Happy New Year , Alex .
Speaker #7: Larry . good morning Happy New Year to you guys Hey , as well . So guys about margins Larry . You mentioned it a couple of times .
Speaker #7: And Martin, you did as well. Obviously, the business has grown really well. You outlined a number of really compelling initiatives. How this growth could continue for '26/'27.
Teams are basically insourced by the insurance company to be looking at cash flows, to be thinking about credit, to be thinking about the intersection of accounting and capital, and managing those portfolios. It is a highly interactive day-to-day thing. Being able effectively to blend turnkey full-service capabilities for insurance companies, that's a key competitive advantage for BlackRock.
Speaker #7: So, when I think about the 45% operating margin, excluding performance fees, that you sort of highlighted for 2025, how should we think about that progressing over the course of '26?
Speaker #7: Assuming kind of normal markets ? And then , Martin , just a follow up for you , the specifics around G&A or mid-single digits , but maybe maybe you guys could just remind us what the right basis .
Martin S. Small: Integrating public fixed income, private credit, Aladdin, accounting, middle office services makes working with BlackRock a performance enhancer, a scale enabler. So there's no doubt that this space has become more competitive, especially in private high-grade. But I think our experience is that insurance companies want a full-service partner, and that we're well-positioned to play that role given our track record in public fixed income, technology, and world-class capabilities in private credit. Your next question comes from Alex Blostein with Goldman Sachs. Happy New Year, Alex. Hi, good morning, Larry. Happy New Year to you guys as well. So, question to you guys about margins. Larry, you mentioned it a couple of times, and Martin did as well. Obviously, the business is growing really well. You outlined a number of really compelling initiatives, how this growth could continue for 2026, 2027.
Integrating public fixed income, private credit, Aladdin, accounting, middle office services makes working with BlackRock a performance enhancer, a scale enabler. So there's no doubt that this space has become more competitive, especially in private high-grade. But I think our experience is that insurance companies want a full-service partner, and that we're well-positioned to play that role given our track record in public fixed income, technology, and world-class capabilities in private credit.
Speaker #7: Thanks .
Speaker #1: Sure . Thanks , Alex . Happy New year . So Blackrock , as I mentioned we continue to deliver industry leading margins . As we talked about at our Investor Day .
Speaker #1: We continue to target a 45% or greater adjusted operating margin profile, with our margin on recurring fee-related earnings running higher. Our operating margin in the quarter was 45%.
Speaker #1: And as I mentioned in my remarks , we continue to deliver margin expansion on recurring fee related earnings . So excluding the of impact performance fees and related comp , our margin would have been 45.5% , up 30 basis points .
Operator: Your next question comes from Alex Blostein with Goldman Sachs.
Laurence D. Fink: Happy New Year, Alex.
Alex Blostein: Hi, good morning, Larry. Happy New Year to you guys as well. So, question to you guys about margins. Larry, you mentioned it a couple of times, and Martin did as well. Obviously, the business is growing really well. You outlined a number of really compelling initiatives, how this growth could continue for 2026, 2027.
Speaker #1: Think of that as more akin to an FR margin burden for stock-based compensation. This growth here at BlackRock is fueled by strong free growth in our private markets.
Speaker #1: Franchises , along with high value , higher fee rate and scaled strategies and active ETFs . Digital assets , systematic and other equities areas .
Martin S. Small: So when I think about the 45% operating margin, excluding performance fees that you sort of highlighted for 2025, how should we think about that progressing over the course of 2026, assuming kind of normal markets? And then, Martin, just to follow up for you, the specifics around G&A, I heard mid-single digits, but maybe you guys could just remind us what the right base is. Thanks. Sure. Thanks, Alex. Happy New Year. So BlackRock, as I mentioned, we continue to deliver industry-leading margins. As we talked about at our investor day, we continue to target 45% or greater adjusted operating margin profile with our margin on recurring fee-related earnings running higher. Our operating margin in the quarter was 45%. And as I mentioned in my remarks, we continue to deliver margin expansion on recurring fee-related earnings.
So when I think about the 45% operating margin, excluding performance fees that you sort of highlighted for 2025, how should we think about that progressing over the course of 2026, assuming kind of normal markets? And then, Martin, just to follow up for you, the specifics around G&A, I heard mid-single digits, but maybe you guys could just remind us what the right base is. Thanks.
Speaker #1: So we think that over time , we'll see the margin on fee , recurring earnings driving upwards toward the trajectories of the best in class private market names .
Speaker #1: So, think north of 50%. A couple of things I'd remind—we defer. You, that a portion of compensation is linked to performance fees for talent retention.
Speaker #1: in years So where we see higher performance fees , we also see higher deferrals , which impact comp and future years . continue to We drive operating leverage and growth through technology and automation , using the benefits of size and scale to reduce costs , strategically footprinting our business .
Laurence D. Fink: Sure. Thanks, Alex. Happy New Year. So BlackRock, as I mentioned, we continue to deliver industry-leading margins. As we talked about at our investor day, we continue to target 45% or greater adjusted operating margin profile with our margin on recurring fee-related earnings running higher. Our operating margin in the quarter was 45%. And as I mentioned in my remarks, we continue to deliver margin expansion on recurring fee-related earnings.
Speaker #1: And as we set out in the Investor Day, we're targeting that 45% or higher, greater adjusted operating margin. We're delivering steady operating expansion before the GIP and HP's margin transactions.
Speaker #1: As we talked about during the announcement of those transactions, GIP and HP's have 50% or higher, both free margins. So that's accretive to our margin on fee-related earnings.
Martin S. Small: So excluding the impact of performance fees and related comp, our margin would have been 45.5%, up 30 basis points. Think of that as more akin to an FRE margin burden for stock-based compensation. This growth here at BlackRock is fueled by strong FRE growth in our private markets franchises, along with high-value, higher fee rate, and scaled strategies in active ETFs, digital assets, systematic equities, and other areas. So we think that over time, we'll see the margin on fee-related earnings driving upwards toward the trajectories of the best-in-class private market names, so think north of 50%. A couple of things. I'd remind you that we defer a portion of compensation linked to performance fees for talent retention. So in years where we see higher performance fees, we also see higher deferrals, which impact comp in future years.
So excluding the impact of performance fees and related comp, our margin would have been 45.5%, up 30 basis points. Think of that as more akin to an FRE margin burden for stock-based compensation. This growth here at BlackRock is fueled by strong FRE growth in our private markets franchises, along with high-value, higher fee rate, and scaled strategies in active ETFs, digital assets, systematic equities, and other areas.
Speaker #1: So we think the growth in these franchises , alongside the highly scaled platforms like iShares Cash model portfolios , they margins higher on fee can fuel related earnings and over time , our overall adjusted operating margin .
Speaker #1: And just in terms of your question , Alex , on G&A , we've talked about our financial rubric and how we aim to align organic revenue growth and controllable expenses across base salaries , as well .
So we think that over time, we'll see the margin on fee-related earnings driving upwards toward the trajectories of the best-in-class private market names, so think north of 50%. A couple of things. I'd remind you that we defer a portion of compensation linked to performance fees for talent retention. So in years where we see higher performance fees, we also see higher deferrals, which impact comp in future years.
Speaker #1: In as well as G&A . Ultimately , I think with the long growth , the markets as our structural tailwind that's going to deliver more beta to the bottom line in op income growth and the benefits of scale to our clients and shareholders .
Martin S. Small: We continue to drive operating leverage and growth through technology and automation, using the benefits of size and scale to reduce costs, strategically footprinting our business. As we set out in the investor day, we're targeting that 45% or higher greater adjusted operating margin. We're delivering steady operating margin expansion before the GIP acquisition and HPS transactions. As we talked about during the announcement of those transactions, GIP and HPS both have 50% or higher FRE margins. That's accretive to our margin on fee-related earnings. We think the growth in these franchises, alongside the highly scaled platforms like iShares, cash, and model portfolios, they can fuel higher margins on fee-related earnings and over time our overall adjusted operating margin.
We continue to drive operating leverage and growth through technology and automation, using the benefits of size and scale to reduce costs, strategically footprinting our business. As we set out in the investor day, we're targeting that 45% or higher greater adjusted operating margin. We're delivering steady operating margin expansion before the GIP acquisition and HPS transactions.
Speaker #1: As I mentioned in my prepared remarks, after annualizing for the impact of HP's and Proquin, we'd expect a mid-single digit percentage increase in.
Speaker #1: G&A In we 2025 , didn't see the full year impact of acquired HP's and Proquin G&A , so we'll impact the year over year comparison in 20 2026 .
Speaker #1: If you annualize our second half , 2025 G&A results , which fully captures HP's and Proquin a are 2026 expected growth is in the , G&A mid-single digits .
As we talked about during the announcement of those transactions, GIP and HPS both have 50% or higher FRE margins. That's accretive to our margin on fee-related earnings. We think the growth in these franchises, alongside the highly scaled platforms like iShares, cash, and model portfolios, they can fuel higher margins on fee-related earnings and over time our overall adjusted operating margin.
Speaker #1: Once we've lapped the 2026 results, with a full year of integrated expense in our results, we expect you'll continue to see controllable expenses within organic base fee growth as we drive our 2030 strategy forward.
Speaker #1: That implies future years are in the mid single-digit percentage growth.
Martin S. Small: Just in terms of your question, Alex, on G&A, we've talked about our financial rubric and how we aim to align organic revenue growth and controllable expenses across base salaries as well as G&A. Ultimately, I think with the long growth of markets as our structural tailwind, that's going to deliver more beta to the bottom line in op income growth and the benefits of scale to our clients and shareholders. As I mentioned on my prepared remarks, after annualizing for the impact of HPS and Preqin, we'd expect a mid-single digit percentage increase in G&A. In 2025, we didn't see the full year impact of acquired HPS and Preqin G&A, so we'll impact the year-over-year comparison in 2026. If you annualize our H2 2025 G&A results, which fully captures HPS and Preqin G&A, our 2026 expected G&A growth is in the mid-single digits.
Just in terms of your question, Alex, on G&A, we've talked about our financial rubric and how we aim to align organic revenue growth and controllable expenses across base salaries as well as G&A. Ultimately, I think with the long growth of markets as our structural tailwind, that's going to deliver more beta to the bottom line in op income growth and the benefits of scale to our clients and shareholders.
Speaker #3: Your next question comes from Ken Worthington of J.P. Morgan.
Speaker #8: Good morning . Happy New Year to you . I wanted to dig a little bit further into Proquin , the alternative data business is evolving several alternative managers and index companies have launched private market partnerships over the last few quarters , with plans to launch various private market indices .
As I mentioned on my prepared remarks, after annualizing for the impact of HPS and Preqin, we'd expect a mid-single digit percentage increase in G&A. In 2025, we didn't see the full year impact of acquired HPS and Preqin G&A, so we'll impact the year-over-year comparison in 2026. If you annualize our H2 2025 G&A results, which fully captures HPS and Preqin G&A, our 2026 expected G&A growth is in the mid-single digits.
Speaker #8: How should we how should we view the evolution of Proquin in BlackRock's initiatives around private market data ? And what sort of outlook do you see for Proquin and Blackrock to participate in investable alternative indices ?
Speaker #1: Thanks . I'd start with we're basically nine months plus past the close of proquin . The integration has really been terrific . We're very excited about the plans going forward .
Martin S. Small: Once we've lapped the 2026 results with a full year of integrated expense in our results, we expect you'll continue to see controllable expenses within organic base fee growth as we drive our 2030 strategy forward. That implies future years are in the mid-single digit percentage growth. Your next question comes from Ken Worthington of JPMorgan. Happy New Year, Ken. Happy New Year to you. I wanted to dig a little bit further into Preqin. The alternative data business is evolving. Several alternative managers and index companies have launched private market partnerships over the last few quarters with plans to launch various private market indices. How should we view the evolution of Preqin and BlackRock's initiatives around private market data, and what sort of outlook do you see for Preqin and BlackRock to participate in investable alternative indices? Thanks.
Once we've lapped the 2026 results with a full year of integrated expense in our results, we expect you'll continue to see controllable expenses within organic base fee growth as we drive our 2030 strategy forward. That implies future years are in the mid-single digit percentage growth.
Speaker #1: The four big things to do as part of bringing into Blackrock is first expanding the distribution . Obviously , of world class Proquin data across our client base .
Operator: Your next question comes from Ken Worthington of JPMorgan.
Speaker #1: The second is the build out of data and models for private markets . Using the data , creating that great ecosystem where you have data and models being able to power how asset allocators think about investing in the private markets , how they think about benchmarking and comparing returns , effectively creating the language of private markets both in risk models and in data .
Laurence D. Fink: Happy New Year, Ken.
Ken Worthington: Happy New Year to you. I wanted to dig a little bit further into Preqin. The alternative data business is evolving. Several alternative managers and index companies have launched private market partnerships over the last few quarters with plans to launch various private market indices. How should we view the evolution of Preqin and BlackRock's initiatives around private market data, and what sort of outlook do you see for Preqin and BlackRock to participate in investable alternative indices? Thanks.
Speaker #1: The third is enriching the data and building scale in the data factory. And then the fourth is the opportunity you're touching on, which we think is the larger long-term opportunity of leveraging our engines in Aladdin and iShares to build the machine for the indexing of the private markets.
Speaker #1: And when I think about what the creation of public markets did to drive stock markets, which especially we see through iShares, we think BlackRock and Proquin to do that for the private markets.
Martin S. Small: I'd start with, we're basically nine months plus past the close of Preqin. The integration has really been terrific. We're very excited about the plans going forward. The four big things to do as part of bringing Preqin into BlackRock is first, expanding the distribution, obviously, of world-class Preqin data across our client base. The second is the build-out of data and models for private markets using the Preqin data, creating that great ecosystem where you have data and models being able to power how asset allocators think about investing in the private markets, how they think about benchmarking and comparing returns, effectively creating the language of private markets, both in risk models and in data. The third is enriching the data and building scale in the data factory.
Laurence D. Fink: I'd start with, we're basically nine months plus past the close of Preqin. The integration has really been terrific. We're very excited about the plans going forward. The four big things to do as part of bringing Preqin into BlackRock is first, expanding the distribution, obviously, of world-class Preqin data across our client base.
Speaker #1: We see that opportunity as being particularly compelling. We're working on building investable indices that we hope to bring to market here in the next few years.
Speaker #1: I And think the real opportunity is to try to standardize index rules , to try to standardize pricing frameworks , and ultimately publication , so that you can create markets and transparency that ultimately can power futures contracts , can ultimately power iShares .
The second is the build-out of data and models for private markets using the Preqin data, creating that great ecosystem where you have data and models being able to power how asset allocators think about investing in the private markets, how they think about benchmarking and comparing returns, effectively creating the language of private markets, both in risk models and in data. The third is enriching the data and building scale in the data factory.
Speaker #1: And a big part of that’s our strategy in the overall growth of frequent.
Speaker #2: Let me add one other point. Because more and more insurance companies, more and more pension funds, and sovereign funds are deploying more and more private market strategies, and more wealth managers are anticipating more private market strategies.
Speaker #2: The need to have a comprehensive risk management platform is even more imperative. So, having a separate risk management system only private for markets is not going to be workable.
Martin S. Small: And then the fourth is the opportunity you're touching on, which we think is the larger long-term opportunity of leveraging our engines in Aladdin and iShares to build the machine for the indexing of the private markets. And when I think about what the creation of public markets did to drive stock markets, which especially we see through iShares, we think BlackRock and Preqin to do that for the private markets. We see that opportunity as being particularly compelling. We're working on building investable indices that we hope to bring to market here in the next few years. And I think the real opportunity is to try to standardize index rules, to try to standardize pricing frameworks, and ultimately publication so that you can create markets and transparency that ultimately can power futures contracts, can ultimately power iShares.
And then the fourth is the opportunity you're touching on, which we think is the larger long-term opportunity of leveraging our engines in Aladdin and iShares to build the machine for the indexing of the private markets. And when I think about what the creation of public markets did to drive stock markets, which especially we see through iShares, we think BlackRock and Preqin to do that for the private markets.
Speaker #2: And I think what Aladdin is bringing across the world and the spectrum of public and private markets, we're in a position of very large growth.
We see that opportunity as being particularly compelling. We're working on building investable indices that we hope to bring to market here in the next few years. And I think the real opportunity is to try to standardize index rules, to try to standardize pricing frameworks, and ultimately publication so that you can create markets and transparency that ultimately can power futures contracts, can ultimately power iShares. And that's a big part of our strategy in the overall growth of Preqin.
Speaker #2: And you saw that in our ACV growth in 2025 . And we we expect that to continue over the coming years . The need to have a comprehensive risk platform and especially if the Labor the utilization of private markets and the 41K and the defined contribution business , each and every firm is going to have to validate and authenticate the risk that implied is being when they add private markets .
Martin S. Small: And that's a big part of our strategy in the overall growth of Preqin. Let me add one other point. Because more and more insurance companies, more and more pension funds, and sovereign funds are deploying more and more private market strategies, and more wealth managers are anticipating more private market strategies, the need to have a comprehensive risk management platform is even more imperative. So having a separate risk management system only for private markets is not going to be workable. And I think what Aladdin is bringing across the world and the spectrum of public and private markets, we're in a position of very large growth. And you saw that in our ACV growth in 2025.
Martin S. Small: Let me add one other point. Because more and more insurance companies, more and more pension funds, and sovereign funds are deploying more and more private market strategies, and more wealth managers are anticipating more private market strategies, the need to have a comprehensive risk management platform is even more imperative.
Speaker #2: We are still going to have to live under some prudent, prudent ruling, maybe still a fiduciary ruling of some sort. We don't know.
Speaker #2: But I can say with absolute certainty, the need to have comprehensive risk tools to understand the risk associated with adding private markets to what was an all public market portfolio is imperative.
So having a separate risk management system only for private markets is not going to be workable. And I think what Aladdin is bringing across the world and the spectrum of public and private markets, we're in a position of very large growth. And you saw that in our ACV growth in 2025.
Speaker #2: And so the need for a platform like Aladdin is has never been greater , especially with the addition of private markets in the in the defined contribution space .
Martin S. Small: We expect that to continue over the coming years, the need to have a comprehensive risk platform, and especially if the Department of Labor approves the utilization of private markets in the 401(k) and the defined contribution business, each and every firm is going to have to validate and authenticate the risk that is being implied when they add private markets. We are still going to have to live under some prudent ruling, maybe still a fiduciary ruling of some sort. We don't know. But I could say with absolute certainty, the need to have comprehensive risk tools to understand the risk associated with adding private markets to what is their all-public market portfolio is imperative. And so the need for a platform like Aladdin has never been greater, especially with the addition of private markets in the defined contribution space.
We expect that to continue over the coming years, the need to have a comprehensive risk platform, and especially if the Department of Labor approves the utilization of private markets in the 401(k) and the defined contribution business, each and every firm is going to have to validate and authenticate the risk that is being implied when they a
Speaker #3: Your next question comes from Dan Fannon with Jefferies.
Speaker #9: thanks . Dan , Good morning . Good morning . So just a question on private credit . I was hoping you could first disclose what the hpes flows were in and then the quarter more broadly , how you're thinking about the outlook for growth .
Speaker #9: Given the headlines and news flow around this asset class, has that changed at all? As we think about 2026 and beyond?
dd private markets. We are still going to have to live under some prudent ruling, maybe still a fiduciary ruling of some sort. We don't know. But I could say with absolute certainty, the need to have comprehensive risk tools to understand the risk associated with adding private markets to what is their all-public market portfolio is imperative. And so the need for a platform like Aladdin has never been greater, especially with the addition of private markets in the defined contribution space.
Speaker #1: Thanks a lot. So, we deployed $25 billion in 2025 across private markets, led by private credit and infrastructure. The deployment trends have been strong.
Speaker #1: We had $7 billion of private credit net inflows in the quarter, primarily due to deployment activity. We're seeing good and building momentum for private markets, investing, and private credit.
Speaker #1: I think in particularly so that number , I think is in the in the tables , we're generally seeing stable credit conditions across the hpes main strategies that today form the core of our private credit platform .
Speaker #1: We think some of the headlines that we've read often highlight isolated stress points rather than painting the full picture, but we generally see stable credit conditions across the portfolios that we're managing.
Martin S. Small: Your next question comes from Dan Fannon with Jefferies. Good morning, Dan. Thanks. Good morning. Good morning. So just a question on private credit. I was hoping you could first disclose what the HPS flows were in the quarter, and then more broadly how you're thinking about the outlook for growth given the headlines and news flow around this asset class. Has that changed at all as we think about 2026 and beyond? Thanks a lot. So we deployed $25 billion in 2025 across private markets led by private credit and infrastructure. The deployment trends have been strong. We had $7 billion of private credit net inflows in the quarter, primarily due to deployment activity. We're seeing good and building momentum for private markets investing and private credit, I think in particular. So that number, I think, is in the tables.
Operator: Your next question comes from Dan Fannon with Jefferies.
Laurence D. Fink: Good morning, Dan.
Dan Fannon: Thanks. Good morning. Good morning. So just a question on private credit. I was hoping you could first disclose what the HPS flows were in the quarter, and then more broadly how you're thinking about the outlook for growth given the headlines and news flow around this asset class. Has that changed at all as we think about 2026 and beyond?
Speaker #1: But I think the context is critical. Defaults and losses in the non-IGG, direct lending to corporates, have been abnormally low for years following low rates.
Speaker #1: Default rates in the broader leveraged loan market are averaging slightly below the long-term average of 3%, and in economic slowdowns, default rates rose to 4 to 5%.
Laurence D. Fink: Thanks a lot. So we deployed $25 billion in 2025 across private markets led by private credit and infrastructure. The deployment trends have been strong. We had $7 billion of private credit net inflows in the quarter, primarily due to deployment activity. We're seeing good and building momentum for private markets investing and private credit, I think in particular. So that number, I think, is in the tables.
Speaker #1: The all time peak in the GFC hit 15% on an issuer weighted basis , and so direct lending defaults are rising . But they remain in historical ranges .
Speaker #1: So I think we see this period, as do many of the other firms, as a period of expected catch-up following a long period of very low defaults.
Speaker #1: So, returning to normal defaults is something I think we expect when we look through the universe of BDC loans. The $400 billion across 20,000 loans sitting in the valuation databases—we see non-accruals that are inside the historical average.
Speaker #1: We see pick as a percentage of total interest income in line with historical norms. Recovery rates are also in line with historical norms.
Martin S. Small: We're generally seeing stable credit conditions across the main HPS strategies that today form the core of our private credit platform. We think some of the headlines that we've read often highlight isolated stress points rather than painting the full picture. But we generally see stable credit conditions across the portfolios that we're managing. But I think the context is critical. Like defaults and losses in the non-IG direct lending to corporates have been abnormally low for years following low rates. Default rates in the broader leveraged loan market are averaging slightly below the long-term average at 3%. And in economic slowdowns, like, default rates rose to 4% to 5%, the all-time peak in the GFC hit 15% on an issuer-weighted basis. And so direct lending defaults are rising, but they remain in historical ranges.
We're generally seeing stable credit conditions across the main HPS strategies that today form the core of our private credit platform. We think some of the headlines that we've read often highlight isolated stress points rather than painting the full picture. But we generally see stable credit conditions across the portfolios that we're managing.
Speaker #1: The data does show some stratification between smaller companies and larger companies. So, a $0 to $50 million EBITDA company looks very different than a $100 to $200 million EBITDA company.
Speaker #1: In terms of the ability to generate earnings . So I think forward , it's not that going there's nothing to see here . It's just that we'd expect smaller borrowers , particularly those that were very high or peak financed at valuations .
But I think the context is critical. Like defaults and losses in the non-IG direct lending to corporates have been abnormally low for years following low rates. Default rates in the broader leveraged loan market are averaging slightly below the long-term average at 3%. And in economic slowdowns, like, default rates rose to 4% to 5%, the all-time peak in the GFC hit 15% on an issuer-weighted basis. And so direct lending defaults are rising, but they remain in historical ranges.
Speaker #1: And capital structures that didn't contemplate a 3% to 4% neutral rate—those are the credits that we would expect to be more challenged.
Speaker #1: The Https teams have focused very consistently over the years on larger companies. The weighted average EBITDA on the portfolio is about $250 million, but these are lending businesses.
Speaker #1: There will be normalized default rates through cycles. And I think the team is very fond of saying the promise of private credit is not that there will be no defaults, it's that detailed credit work is going to be rewarded and that lenders will be in a better position to maximize recoveries.
Martin S. Small: So I think we see this period, as do many of the other firms, as a period of expected catch-up following a long period of very low defaults. So returning to normal defaults is something I think we expect. When we look through the universe of BDC loans, the $400 billion across 20,000 loans sitting in the valuation databases, we see non-accruals that are inside the historical average. We see PIK as a percentage of total interest income in line with historical norms, recovery rates that are in line with historical norms. The data does show some stratification between smaller companies and larger companies. So a $0 to $50 million EBITDA company looks very different than a $100 to $200 million EBITDA company in terms of the ability to generate earnings. So I think going forward, it's not that there's nothing to see here.
So I think we see this period, as do many of the other firms, as a period of expected catch-up following a long period of very low defaults. So returning to normal defaults is something I think we expect. When we look through the universe of BDC loans, the $400 billion across 20,000 loans sitting in the valuation databases, we see non-accruals that are inside the historical average.
Speaker #1: We continue to see good flows . We had strong growth subscriptions of 1.1 billion in the fourth quarter in , and redemptions were 4.1% , which was higher than recent quarters .
We see PIK as a percentage of total interest income in line with historical norms, recovery rates that are in line with historical norms. The data does show some stratification between smaller companies and larger companies. So a $0 to $50 million EBITDA company looks very different than a $100 to $200 million EBITDA company in terms of the ability to generate earnings. So I think going forward, it's not that there's nothing to see here.
Speaker #1: But in line with the broader industry, I think a mix of factors affected the Q4 flows. There's generally elevated seasonal redemptions.
Speaker #1: There was media attention , some profit taking , and then I think , you know , forward expectations on lower base rates . Also plays in .
Speaker #1: But still, most BDCs posted positive flows in our survey data. We see the structural pipeline for private credit fundraising and deployment as intact in the data.
Martin S. Small: It's just that we'd expect smaller borrowers, particularly those that were financed at very high or peak valuations and capital structures that didn't contemplate a 3% to 4% neutral rate, those are the credits that we'd expect to be more challenged. The HPS teams have focused very consistently over the years on larger companies. The weighted average EBITDA on the HLEN portfolio is about $250 million. But these are lending businesses. There will be normalized default rates through cycles. And I think the team is very fond of saying the promise of private credit, not that there will be no defaults, is that detailed credit work is going to be rewarded and that lenders will be in a better position to maximize recoveries. We continue to see good flows. We had strong gross subscriptions of $1.1 billion in the fourth quarter in HLEN.
It's just that we'd expect smaller borrowers, particularly those that were financed at very high or peak valuations and capital structures that didn't contemplate a 3% to 4% neutral rate, those are the credits that we'd expect to be more challenged. The HPS teams have focused very consistently over the years on larger companies. The weighted average EBITDA on the HLEN portfolio is about $250 million. But these are lending businesses.
Speaker #1: Over 80% of investors plan to maintain or increase their allocations to private credit in the next 12 months. It's just becoming a more standard part of our fixed income allocations to provide income and diversification.
Speaker #3: Your next question comes from Ben Budish with Barclays.
There will be normalized default rates through cycles. And I think the team is very fond of saying the promise of private credit, not that there will be no defaults, is that detailed credit work is going to be rewarded and that lenders will be in a better position to maximize recoveries. We continue to see good flows. We had strong gross subscriptions of $1.1 billion in the fourth quarter in HLEN.
Speaker #2: Good morning, Ben. Happy New Year.
Speaker #10: Hi. Good morning, and happy New Year to you. Maybe just following up on Dan's question, I'm just curious if you could provide a little bit more color on your expectations for the Wealth Channel more generally in 2026?
Speaker #10: And obviously some some good if not better than average trends in Q4 ? What's the latest you're hearing from advisors for JP ? I know there press was some indicating that there were maybe some challenges getting a product off the ground .
Martin S. Small: Redemptions were 4.1%, which was higher than recent quarters, but in line with the broader industry. I think a mix of factors affected the Q4 flows. There's generally elevated seasonal redemptions. There was media attention, some profit taking. And then I think forward expectations on lower base rates also plays in. But still, most BDCs posted positive flows. In our Preqin survey data, we see the structural pipeline for private credit fundraising and deployment as intact. In the Preqin data, over 80% of investors plan to maintain or increase their allocations to private credit in the next 12 months. It's just becoming a more standard part of our overall fixed income allocations to provide income and diversification. Your next question comes from Ben Budish with Barclays. Good morning, Ben. Happy New Year. Hi, good morning, and happy New Year to you.
Redemptions were 4.1%, which was higher than recent quarters, but in line with the broader industry. I think a mix of factors affected the Q4 flows. There's generally elevated seasonal redemptions. There was media attention, some profit taking. And then I think forward expectations on lower base rates also plays in. But still, most BDCs posted positive flows. In our Preqin survey data, we see the structural pipeline for private credit fundraising and deployment as intact.
Speaker #10: So just curious if there's anything you can share there. And then I think in the prepared remarks, you talked about model portfolios using private markets.
Speaker #10: So anything you can share in terms of what those products might look like, and what we should expect in terms of timing, would be helpful.
Speaker #10: Thank you .
Speaker #1: Sure, I'll give that one a go. I'd start with the framing that, again, at our Investor Day we discussed how our platform is going to target $400 billion in gross fundraising from 2025 through 2030.
In the Preqin data, over 80% of investors plan to maintain or increase their allocations to private credit in the next 12 months. It's just becoming a more standard part of our overall fixed income allocations to provide income and diversification.
Speaker #1: We raised over 40 billion in private markets in 2025 . And we're entering 26 . I think , with strong momentum , very excited about the integrated public private capabilities that now include GIP and Proquin in private wealth and retail channels .
Operator: Your next question comes from Ben Budish with Barclays.
Speaker #1: We currently have the flagship private credit BDC, Lend, as you mentioned, been raising about $1 billion a quarter, and we have semi-liquid strategies and senior secured loans.
Laurence D. Fink: Good morning, Ben. Happy New Year.
Operator: Hi, good morning, and happy New Year to you.
Speaker #1: Junior capital and broadly syndicated loans in '40 Act interval and tender offer funds. We have multi-strategy credit and private equity solutions that combine for about $1 billion in AUM under the tickers CREDIT and BPF, and in Europe, we reach.
Martin S. Small: Maybe just following up on Dan's question, just curious if you could provide a little bit more color on your expectations for the wealth channel more generally in 2026. HLEN, obviously, some good, if not better than average trends in Q4. What's the latest you're hearing from advisors? For GIP, I know there was some press indicating that there were maybe some challenges getting a product off the ground. So just curious if there's anything you can share there. And then I think in the prepared remarks, you talked about model portfolios using private markets. So anything you can share in terms of what those products might look like, what we should expect in terms of timing would be helpful. Thank you. Sure. I'll give that one a go.
Ben Budish: Maybe just following up on Dan's question, just curious if you could provide a little bit more color on your expectations for the wealth channel more generally in 2026. HLEN, obviously, some good, if not better than average trends in Q4. What's the latest you're hearing from advisors? For GIP, I know there was some press indicating that there were maybe some challenges getting a product off the ground.
Speaker #1: We recently launched multi-Alternative Solutions products using the LTV vehicles, which stand at $600 million plus in AUM, generally offered through private banks and retirement plans.
So just curious if there's anything you can share there. And then I think in the prepared remarks, you talked about model portfolios using private markets. So anything you can share in terms of what those products might look like, what we should expect in terms of timing would be helpful. Thank you.
Speaker #1: Looking ahead , as Larry mentioned , we're bringing in eight series of vehicles to the market for private wealth and retail channels . Of course , of 26 , the series is going to give investors access to key private markets , building blocks , direct lending , junior capital , real assets , triple net lease , private equity solutions and at our investor day , we set out a goal to grow the private markets to wealth series of products to at least 60 billion of AUM by 2030 .
Laurence D. Fink: Sure. I'll give that one a go. I'd start with the framing that, again, at our investor day, we discussed how our platform was going to target 400 billion in gross fundraising from 2025 through 2030. We raised over 40 billion in private markets in 2025, and we're entering 2026, I think, with strong momentum. Very excited about the integrated public-private capabilities that now include GIP, HPS, and Preqin.
Martin S. Small: I'd start with the framing that, again, at our investor day, we discussed how our platform was going to target 400 billion in gross fundraising from 2025 through 2030. We raised over 40 billion in private markets in 2025, and we're entering 2026, I think, with strong momentum. Very excited about the integrated public-private capabilities that now include GIP, HPS, and Preqin. In private wealth and retail channels, we currently have the flagship private credit BDC HLEN, as you mentioned, been raising about a billion a quarter. And we have semi-liquid strategies and senior secured loans, junior capital, and broadly syndicated loans. In 40-Act interval and tender offer funds, we have multi-strategy credit and private equity solutions that combine for about a billion in AUM under the tickers CREDEX and BPIF.
Speaker #1: So I think you'll see here in the in the near term , a real asset strategy coming to market in the US , European direct lending to European private wealth clients and following with triple net lease and other strategies in the US later this year .
In private wealth and retail channels, we currently have the flagship private credit BDC HLEN, as you mentioned, been raising about a billion a quarter. And we have semi-liquid strategies and senior secured loans, junior capital, and broadly syndicated loans. In 40-Act interval and tender offer funds, we have multi-strategy credit and private equity solutions that combine for about a billion in AUM under the tickers CREDEX and BPIF.
Speaker #3: Ladies and gentlemen, we have reached the allotted time for questions. Mr. Fink, do you have any closing remarks?
Speaker #2: Thank you. Operator, I want to thank all of you for joining us this morning and for the continued interest in BlackRock. Our results in 2025 validate the power of our integrated platform and the strength of our positioning with clients.
Martin S. Small: In Europe, we recently launched multi-alternative solutions products using the LTIF vehicles, which stand at sort of 600 million plus in AUM, generally offered through private banks and retirement plans. Looking ahead, as Larry mentioned, we're bringing an H-series of vehicles to the market for private wealth and retail channels, for Q4 2026. The H-series is going to give investors access to key private markets building blocks: direct lending, junior capital, real assets, triple net lease, private equity solutions. At our investor day, we set out a goal to grow the private markets-to-wealth series of products to at least 60 billion of AUM by 2030.
In Europe, we recently launched multi-alternative solutions products using the LTIF vehicles, which stand at sort of 600 million plus in AUM, generally offered through private banks and retirement plans. Looking ahead, as Larry mentioned, we're bringing an H-series of vehicles to the market for private wealth and retail channels, for Q4 2026.
Speaker #2: We entered 2026 with differentiated momentum and opportunities ahead for us . I think we're well positioned to deliver for our clients and in turn , create longer term value for our shareholders .
Speaker #2: Everyone, have a very good first quarter and enjoy the winter.
The H-series is going to give investors access to key private markets building blocks: direct lending, junior capital, real assets, triple net lease, private equity solutions. At our investor day, we set out a goal to grow the private markets-to-wealth series of products to at least 60 billion of AUM by 2030.
Martin S. Small: So I think you'll see here in the near term a real asset strategy coming to market in the US, European direct lending to European private wealth clients, and following with triple net lease and other strategies in the US later this year. Ladies and gentlemen, we have reached the allotted time for questions. Mr. Fink, do you have any closing remarks? Thank you, operator. I want to thank all of you for joining us this morning and for the continued interest in BlackRock. Our results in 2025 validate the power of our integrated platform and the strength of our positioning with clients. We enter 2026 with differentiated momentum and opportunities ahead for us. I think we're well positioned to deliver for our clients and in turn create longer-term value for our shareholders. Everyone have a very good first quarter and enjoy the winter. This concludes today's teleconference.
So I think you'll see here in the near term a real asset strategy coming to market in the US, European direct lending to European private wealth clients, and following with triple net lease and other strategies in the US later this year.
Operator: Ladies and gentlemen, we have reached the allotted time for questions. Mr. Fink, do you have any closing remarks?
Laurence D. Fink: Thank you, operator. I want to thank all of you for joining us this morning and for the continued interest in BlackRock. Our results in 2025 validate the power of our integrated platform and the strength of our positioning with clients. We enter 2026 with differentiated momentum and opportunities ahead for us. I think we're well positioned to deliver for our clients and in turn create longer-term value for our shareholders. Everyone have a very good first quarter and enjoy the winter.
Operator: This concludes today's teleconference. You may now disconnect.
