BlackRock’s $13.5 trillion reinvention is accelerating as private market funds and technology services now generate more revenue than the firm’s traditional fixed-income and ETF businesses. The world’s largest asset manager is undergoing its most significant transformation since riding the passive-investing wave of the 2010s, with CEO Larry Fink describing this shift as the most exciting period in BlackRock’s history.
Private Markets Drive Revenue Transformation
BlackRock 3.0 is taking definitive shape as revenues from private markets businesses consistently outpace fees from fixed-income mainstays. Despite the firm’s iShares ETF line reaching new highs with over $5 trillion in assets and record net inflows exceeding $150 billion in Q3 2025, leadership’s excitement centers on subscription services and business units representing less than 3% of total assets.
The strategic pivot follows BlackRock’s massive acquisition spree, including the $12 billion all-equity purchase of private-credit giant HPS, infrastructure investor Global Infrastructure Partners, and private-markets data provider Preqin. These moves totaling over $27 billion have fundamentally reshaped the firm’s revenue composition.
Acquisition Strategy Fuels Growth
Since the GIP deal closed in October 2024, revenues from private market funds and technology subscriptions have exceeded those from fixed-income funds and ETFs each quarter. The gap continues to widen as BlackRock added approximately $105 billion in private market assets last quarter alone, with HPS contributing over $100 billion of that total.
The integration of these acquisitions has produced staggering results:
- 136% growth in private market fund fees through first three quarters of 2025
- 12% year-over-year increase in tech services revenue excluding Preqin
- Record $25+ billion infrastructure fund raised by GIP this summer
Technology Services Complement Private Markets Push
BlackRock’s technology ecosystem, including the recently acquired Preqin and existing Aladdin risk analytics platform, creates a powerful synergy with its private markets expansion. CFO Martin Small emphasized that even without the Preqin acquisition, technology services revenue grew substantially, indicating strong organic growth across the firm’s digital offerings.
This technological infrastructure positions BlackRock to capitalize on what industry experts note is a broader trend of digital transformation across financial services. The firm’s platform approach mirrors developments in other sectors where according to recent analysis, integrated technology solutions are becoming increasingly valuable.
Institutional Capital Shifts Toward Alternatives
BlackRock’s strategic redirection aligns with broader institutional capital flows toward private markets, where fees are higher and capital demonstrates greater stickiness. Fink and his team highlighted extended conversations between HPS professionals and insurance clients, signaling deepening relationships in the private credit space.
The move toward alternatives represents a fundamental industry shift as data from technology transitions suggests that established leaders must continually evolve to maintain dominance. BlackRock’s expansion into infrastructure, private credit, and private equity data services demonstrates this adaptive approach.
Traditional Strengths Maintain Significance
While emphasizing its private markets transformation, BlackRock continues to dominate traditional asset classes. Fixed-income funds attracted tens of billions in new capital last quarter, and the firm maintains over $3 trillion in fixed-income products. The iShares ETF platform remains a massive contributor despite no longer being the primary growth driver.
This balanced approach allows BlackRock to leverage its scale while pursuing higher-margin opportunities. As Fink described “the depth and breadth of BlackRock’s global platform,” the firm appears positioned to capture growth across both traditional and alternative investment landscapes.
The $13.5 trillion manager’s reinvention reflects broader financial industry trends while establishing a template for how established financial giants can successfully pivot toward emerging opportunities. With additional coverage of financial technology evolution available through our network analysis, BlackRock’s transformation offers a case study in strategic adaptation at scale.
