BlackRock

BlackRock is an investment management company serving institutions, financial advisers and individual investors. Its offerings include iShares exchange-traded funds, index and active strategies, cash management and private market investments.

The company also supplies technology, risk analytics and data services through platforms including Aladdin and related capabilities. BlackRock's core commercial role is managing client assets and providing services around investment operations, rather than owning all the assets that appear in its assets-under-management figures.

How Does BlackRock Make Money?

BlackRock makes money primarily from investment advisory and administration fees. It also earns performance fees, securities lending revenue and technology or subscription fees under the applicable client arrangements.

These are investment and service areas rather than separate reportable operating segments.

Why assets under management are not revenue

Client money belongs to the relevant investors and investment vehicles. BlackRock earns the agreed fee for managing or administering it. Market movements, flows and the mix of products can affect fee-paying assets, but a rise in AUM is not an equal increase in BlackRock's revenue.

How base fees differ from performance fees

Base fees are commonly linked to assets or contracted services. Performance fees depend on meeting the conditions specified by the relevant investment agreement. Their timing and predictability can therefore differ, even when both arise from the same investment management relationship.

Where repeat revenue comes from

Investors continue holding managed products, institutions maintain mandates and technology clients renew or expand agreements. New strategies and services can add further fee opportunities. The commercial outcome depends on the fees earned on that activity and the costs of providing investment management, distribution and technology.