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BlackRock ( BLK ) expanded into private markets with big deals

last year

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Investors looking for details on alternative asset

strategy

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Preqin deal may lead to private market indexes

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Larry Fink's succession also a focus for investors,

analyst says

By Davide Barbuscia

NEW YORK, June 12 (Reuters) - BlackRock ( BLK ) will

hold an investor day on Thursday that is expected to provide

insight into the asset management firm's strategic priorities

and its growing focus on private markets.

The world's largest asset manager, overseeing $11.58

trillion as of the end of the first quarter, last year expanded

its presence in private markets through a series of acquisitions

that BlackRock's ( BLK ) boss Larry Fink said were transformational for

the New York-based firm.

BlackRock ( BLK ) spent about $25 billion in 2024 on infrastructure

investment fund Global Infrastructure Partners and private

credit business HPS Investment Partners. It also struck a $3.2

billion deal to acquire UK data provider Preqin. That

acquisition officially closed in March this year.

"I think investors are going to want more granular details

and more color on BlackRock's ( BLK ) strategy to increase exposure to

alternative assets," said Cathy Seifert, an analyst at CFRA

Research who covers BlackRock ( BLK ).

BlackRock ( BLK ) declined to comment on the focus of its investor

day.

Private assets generate significantly higher fees than

exchange-traded funds (ETFs), a core part of BlackRock's ( BLK )

business through its iShares franchise.

In his 2025 annual chairman's letter to shareholders,

BlackRock's ( BLK ) Chairman and CEO Fink said protectionism had

returned with force as a result of a wealth divide that could be

countered by offering more investors access to high-return

private markets such as infrastructure and private credit.

Ben Budish, an analyst at Barclays, said he expected updates

from the company on potentially creating indexes based on

private markets after the acquisition of private markets data

provider Preqin.

"Looking at what BlackRock ( BLK ) did with iShares and ETFs, is

there a way to do that with private markets? ... I'm sure there's

more details to come on that," he said.

Private credit, where non-bank institutions lend to

companies, has experienced significant growth in recent years

due to stricter regulations that have increased the cost for

traditional banks to fund higher-risk loans.

But broader market volatility caused by U.S. President

Donald Trump's aggressive stance on tariffs has led to slower

dealmaking in private markets in general, raising some concerns

there may be a mismatch between money available for private

lending and not enough places to invest it.

Investors may also look for any signs regarding succession

at the firm. Fink, 72, has led BlackRock ( BLK ) since co-founding it in

1988. A recent wave of senior executive departures has reignited

speculation about his eventual successor, even as Fink has

signaled no immediate plan to step down.

"The firm would do itself a favor by highlighting the depth

and breadth of their management bench, particularly since the

company's business model is expanding and potentially becoming

more complex," said Seifert.