BlackRock’s Big Move into Private Markets Reflects Growing Shift Away from Public Investments

The world’s largest asset manager, BlackRock, is signalling a seismic shift in the investment world, moving beyond traditional public markets.

As stocks and bonds lose their allure, BlackRock, led by chairman Larry Fink, has doubled down on alternative investments, aiming to secure its relevance amid changing investor preferences. The firm’s recent high-profile acquisitions, including HPS Investment Partners for approximately US$12 billion, Global Infrastructure Partners for US$12.5 billion, and private markets data provider Preqin for US$3.2 billion, showcase its strategic pivot.

These moves reflect broader market trends. The number of US-listed companies has halved since 1996, while startups valued at over US$1 billion—so-called unicorns—have surged. Companies are choosing to stay private longer due to accessible financing and fewer regulatory burdens. This stagnation has made public markets increasingly “boring” for investors, pushing firms like BlackRock to offer private credit and other alternatives to their clients, including steadily wealthy “mini-millionaires” earning between US$150,000 and US$250,000 annually.

BlackRock’s acquisition spree also highlights its competition with alternative managers like Apollo Global Management, KKR & Co, and Capital Group, who are launching innovative products blending public and private investments. For instance, Apollo and State Street Corp are collaborating on private credit ETFs, stepping into BlackRock’s ETF-dominated territory. Meanwhile, the explosive growth of private credit, with middle-market loans offering higher returns than traditional corporate bonds, has further accelerated the shift.

If the HPS deal closes, BlackRock will oversee roughly US$600 billion in alternative assets—a modest figure relative to its US$11.5 trillion under management but a significant step in reshaping its future. With time running short and competition heating up, BlackRock’s foray into private markets marks a clear acknowledgment: the future of investing lies in alternatives.

Original article by Shuli Ren for The Business Times. Read more here or click the PDF below.

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