BlackRock Adds $205 Billion in New Cash, Revenue Jumps 19%

BlackRock Inc. pulled in $205 billion of new money in the third quarter as revenue surged at the world’s largest asset manager, which is now a full year into a major transformation to push further into higher-fee private markets.

The firm added $135 billion net in exchange-traded funds and $66 billion in actively managed funds, the company said in a statement Wednesday. Revenue jumped 19% from a year earlier, and total assets under management hit a record of $15.5 trillion.

“Demand for capital is growing across the global economy, and BlackRock is increasingly at the center of how that capital is deployed and managed,” Chief Executive Officer Larry Fink said in the statement.

Shares of BlackRock rose as much as 3.7% to $1,106 after the market open in New York.

BlackRock’s adjusted earnings per share in the quarter rose 38% from a year ago to $15.93. That beat the $14.15 average estimate of analysts compiled by Bloomberg.

Cash and money-market funds took in $31 billion in net money. Long-term investment funds added $175 billion, beating the $159 billion average analyst estimate. BlackRock reported 11% annualized organic base fee growth in the quarter, marking the ninth consecutive quarter it exceeded its 5% target.

The firm reported $27 billion of outflows from index products for institutional investors. On a call with analysts, BlackRock said the outflows were concentrated in low-fee products.

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