BlackRock is wrestling with succession planning. Here’s the latest news on the biggest money manager.

  • BlackRock is the largest asset management firm, overseeing $9.1 trillion as of September.
  • Founder-led BlackRock is molding the next generation of management and seeking out deals.
  • Here is the latest reporting from Business Insider on BlackRock’s executives, funds, and more.

BlackRock oversees $9.1 trillion in assets as the world’s largest money manager, and it’s amassed enormous power through its many funds and high-profile chief executive and co-founder, Larry Fink. It’s gone from a company mainly known only on Wall Street to one the general public now knows best for two things: its sheer size and ESG investing.

BlackRock’s dominance as a passive investment behemoth and a vocal champion of environmental, social, and governance investing has drawn far more mainstream attention than ever in recent years.

That’s led to viral conspiracy theories over what BlackRock owns and how it influences decision-making at other companies, presidential candidates raising the issue during debates, attacks on Fink personally, and criticisms by lawmakers primarily on the right who have seized on ESG as a boogeyman. The firm has defended itself, responding to critics that it works as a fiduciary and acts in clients’ best interest, not as a force for political activism. It has delayed launching an ESG fund for more than a year against that backdrop, Business Insider first reported last August.

BlackRock manages assets for clients across wealth management, pension plans, insurance companies, governments, and other types of clients. Its reach is wide for sophisticated and everyday investors: 35 million people invest in BlackRock’s 1,300 exchange-traded funds. It sells a powerful portfolio-management software called Aladdin, used by virtually all of Wall Street, and it manages some $320 billion of so-called alternative assets like private credit.

At the same time, BlackRock is shaping the next generation of leadership.

Rob Kapito, the president and another cofounder, and Fink lead the New York-based firm. BlackRock has made personnel changes and appointments in the past year that point to who may be positioned to take over once Fink and Kapito leave.

For a window into BlackRock’s workforce, powerful executives, dealmaking, and more, here is Business Insider’s latest reporting on BlackRock.

Founder-led BlackRock is shaping the next generation of top management. 

“I’m not planning to leave BlackRock anytime soon,” Fink said at the firm’s investor day in June 2023, “but BlackRock’s board and I have no higher priority than developing the next-generational leaders for BlackRock.”

Business Insider reported that a group of top executives, including Mark Wiedman, Martin Small, and Rob Goldstein are viewed as contenders to replace Fink. An exclusive org chart that Insider published shows where these executives and other influential employees sit within the firm.

BlackRock is prioritizing the private markets.

Managers typically charge far higher fees to oversee private-markets assets for clients than the traditional stock and bond funds that BlackRock is best known for, and clients’ appetite for those assets is growing.

This year the firm set a goal to double the revenue that its private markets business generates, and it’s on the hunt for deals to make that happen.

BlackRock announced last year that it is acquiring a London-based private credit manager. Business Insider previously reported that a prior private credit-focused acquisition BlackRock made in 2018 led to asset growth but departures of some senior employees who were frustrated by the deal’s integration.

Last month BlackRock reorganized the executives overseeing private assets — which is no longer structured as a standalone unit — to boost growth. Fink indicated last April that the banking sector turmoil this spring and the market volatility that ensued had presented opportunities for deals, and analysts have pointed to alternatives as one area where BlackRock could seek out M&A.

BlackRock — and Fink personally — have become political targets over ESG investing.

BlackRock and Fink himself have faced intense scrutiny over the firm’s climate-aware investment strategies. Conservative politicians view BlackRock as promoting liberal ideals in the companies BlackRock’s funds own, while progressive politicians say BlackRock isn’t doing enough to fight the climate crisis.

BlackRock often responds by reminding each side — and investors at large — that it is a fiduciary and works in the best interest of its clients. Late last year, a small activist hedge fund with a tiny stake in BlackRock even called on the company to replace Fink over the firm’s approach to ESG investing.

Business Insider reported last March that Fink backed off of sustainability talk in his annual letter after a year of political attacks. And during the firm’s investor day last June, there was no mention of the term “ESG,” according to a 33,000-word transcript of the event from the research provider Sentieo.

Executives used different language to discuss sustainable investing, describing “transition capital,” or opportunities for investments toward a low-carbon economy, at length.

Fink says BlackRock is spending a lot of time studying artificial intelligence tech, and the firm continues to push into crypto. 

BlackRock is spending “a huge amount of time” on AI, and how it will “reshape” the firm, Fink said last year. BlackRock has experimented with AI for several years: five years ago it formed a team now called AI Labs that works on the technology.

Fink and Kapito said in a memo this week about laying off 3% of employees that the firm was looking to “new technologies” to “find new sources of alpha, enhance service to our clients, create additional growth engines for Aladdin, and achieve significant efficiencies in how we operate.”

BlackRock is also pushing to launch a spot bitcoin exchange-traded fund in the US, even as the crypto sector faces a regulatory crackdown. The Securities and Exchange Commission said this week that it was delaying its decisions on those applications for spot bitcoin ETFs, including for BlackRock.

Shopping Cart

Media Kit

    Data Protection

    Personal Data (“Data”) submitted for Media Kit (“Media Kit”), and/or collected in the form of first name, last name, email address and other contact details may be used for the purposes of inviting you to future events and for reaching out to you with content which may be of interest to you. For these purposes, The Digital Banker will share the Data with our associate companies (including event and content sponsors) to promote their products and services. You will also be automatically subscribed as a user on www.thedigitalbanker.com. If you would like to opt-out, email us at [email protected].

    By clicking Submit, you acknowledge that you consent/ have sufficient informed consent to the collection, use and disclosure of Data as set out above.

    The Digital Banker Summit

    Moving on from FTX: is 2023 the year of CBDCs?

    Indonesia, Jakarta

    Thailand, Bangkok

    Philippines, Manila

    Contact Us

      Data Protection

      The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

      Request Nomination Pack

        Data Protection

        The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

        Registration Form

          Data Protection

          The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

          Registration Form

            Data Protection

            The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

            Registration Form

              Data Protection

              The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

              Registration Form

                Data Protection

                The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

                Registration Form

                  Data Protection

                  The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

                  The world’s preeminent Private Banks and Wealth Managers are demonstrating a committed drive in innovation, advisory, new products and services to meet the sophisticated needs of their clients.

                  COVID-19
                  Amid economic activity revival on the back of the Covid-19 vaccine program, organisations moving from business continuity plans to stable working environments, together with the slightest improvement in unemployment numbers, forced the world to adjust to new realities. Coming to terms with the “new normal”, global investors are now on the look-out for attractive and stable investment opportunities.

                  Needs of Private Wealth customers and families worldwide have drastically changed due to the pandemic and banks have had to accelerate efforts to deploy a multi-channel service strategy and safeguard clients’ businesses and wealth against negative impacts of economic uncertainly.

                  The Global Private Banking Innovation Awards will recognise the world’s best private banks, wealth managers and asset managers that are championing innovation across advisory, service, products, customer experience and more.

                  Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. 

                  Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

                  Request Nomination Pack

                  Error: Contact form not found.