GlobalData
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BlackRock has placed a significant focus on expanding its private investment businesses, with plans to nearly double its market value by 2030, reported Financial Times (FT).
The New York-based firm has set a fundraising goal of approximately $400bn for its private investment divisions, reflecting a strategic shift to compete with other alternative asset giants.
The company's 2030 vision was outlined as it seeks to challenge competitors such as Blackstone, Apollo Global Management, and KKR in the alternative asset space.
BlackRock's acquisitions, including a $28bn investment to purchase Global Infrastructure Partners, HPS Investment Partners, and the latest acquisition of Preqin, demonstrate a pivot from its public market origins towards private markets.
Under BlackRock's stewardship, GIP has already made a significant move by acquiring a portfolio of ports valued at $22.8bn, including strategic assets by the Panama Canal.
Additionally, a collaboration with Microsoft has been established to create a new $30bn artificial intelligence investment fund. The acquisition of HPS is expected to be finalised in July.
BlackRock CEO Larry Fink, who is set to address investors, has emphasised the growing client demand for private market investments.
With an anticipated annual revenue growth of around 10%, BlackRock projects that its yearly income could surpass $35bn by 2030.
The firm anticipates that private investment and technology businesses will contribute over 30% of its revenue by 2030, a significant increase from 15% at the end of last year. This translates to a yearly fundraising goal of about $65bn from 2025 to 2030 for the private investment sectors.
Furthermore, BlackRock has established a $15bn adjusted operating income target and envisions its market value escalating to $280bn by 2030, a substantial rise from its current $154bn valuation.
"BlackRock sets $400bn fundraising goal for private investment growth" was originally created and published by Private Banker International, a GlobalData owned brand.
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