On 15 July, BlackRock Inc released its Second Quarter (Q2) 2022 earnings results.
BlackRock’s assets under management at the end of Q2 of 2022 decreased to $8.5 trillion, down from $9.57 trillion as at the end of Q1 of 2022.
In January of 2022, BlackRock’s assets under management touched $10.1 trillion. Yes $10.1 trillion.
Life-changing acquistition.
BlackRock’s acquisition of 100% of Barclays Global Investors in a cash-and-share deal worth $15.2billion in 2009 changed its fortunes.
In 2009, BlackRock's assets under management were $1.435 trillion.
Barclays Global Investors’ assets under management were around $1.85bn.
Barclays Global Investors (BGI) was one of the world’s largest asset managers and a leading global provider of investment management products and services at the time. BlackRock acquired BGI including its market-leading exchange traded fund platform iShares.
BlackRock's acquisition of Barclays Global Investors made it become a diversified and fully integrated asset management firm with $3.2 trillion worth of assets under management in December 2009.
How did BlackRock settle the $15bn cash-and-share transaction?
Barclays also got two seats on BlackRock's board.
Recommended by LinkedIn
The shares issued gave Barclays a 19.9% stake in BlackRock. BlackRock then became one of the biggest shareholders in Barclays, with a 7.1% stake. The couple was in honeymoon.
After the 2008 global financial crisis, Basel Committee on Banking Supervision developed Basel III, which is an internationally agreed set of measures developed in response to the financial crisis which aim to strengthen the regulation, supervision and risk management of banks.
The introduction of the Basel III regulations meant banks have to hold more capital against minority stakes in asset managers and other firms made it "uncomfortable" for banks to own such stake.
Due to the change in regulations, Barclays then sold its 19.9% stake for $6.1 billion in 2012. Barclays' shares were sold by way of an offering and a related buyback by BlackRock of up to $1 billion of the shares. The marriage last for 3 years.
From assets under management of just $1.8 trillion in 2009, BlackRock has certainly cemented its position as one of the largest asset managers in the world.
Since BlackRock's IPO in 1999, it has generated a total return of more than 9,000% (actually 9,698% as at 31 Dec 2021), for its shareholders, well in excess of broader markets. This data is reflective of October1, 1999–December31, 2021.
There has been a 560%+ total return on BlackRock’s stock over the past 10 years. This represents a 21% compound annual growth rate, which is well in excess of broader markets and peers
$3.7 billion was returned to shareholders through a combination of dividends and share repurchases after investing for growth in 2021.
Those who have held BlackRock's share have benefited greatly over the years.
