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BlackRock's Private Markets Expansion: A Key Long-Term Growth Driver?
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Key Takeaways
BlackRock generated $15.31B in private markets inflows, with trailing 12-month fundraising reaching $68B.
HPS, GIP and Preqin acquisitions expand private markets capabilities and create cross-selling opportunities.
Record $15.49T in AUM and $205B in quarterly inflows support growth, while rising expenses pose concerns.
BlackRock, Inc. (BLK - Free Report) is strengthening its position in private markets through strategic acquisitions and growing client demand. The company generated $15.31 billion in private markets net inflows in the third quarter of 2026, while fundraising over the trailing 12 months touched $68 billion. The integration of HPS Investment Partners, Global Infrastructure Partners (GIP) and Preqin is boosting its capabilities and diversifying revenues.
BlackRock's above-mentioned acquisitions, as well as ElmTree Funds and SpiderRock buyouts, have strengthened its presence across infrastructure, private credit, real estate and data analytics.
BlackRock’s approximately $12-billion acquisition of HPS Investment Partners strengthened its private credit capabilities and helped raise $25 billion in its first full year. The $12.5-billion acquisition of GIP expanded the company’s infrastructure platform, positioning it to capitalize on growing demand for energy, digital infrastructure and transportation investments.
Meanwhile, the acquisition of Preqin enhanced BlackRock’s private markets data and analytics capabilities, adding coverage of approximately 210,000 funds and more than 220,000 users. Its integration with Aladdin and eFront strengthens its ability to deliver comprehensive investment insights and technology solutions.
In the third quarter of 2026, infrastructure and private credit contributed $7.58 billion and $5.01 billion, respectively, to private markets net inflows at BLK. These inflows highlight the growing contribution of the investment capabilities strengthened through the HPS and GIP acquisitions. These expanded capabilities are expected to create cross-selling opportunities, deepen client relationships and support higher-value recurring revenues.
Beyond private markets, BlackRock's diversified investment platform and growing assets under management (AUM) continue to support its growth prospects. AUM reached a record $15.49 trillion as of Sept. 30, 2026, up 15% year over year. During the third quarter, the company recorded $205 billion in total net inflows, including $174.81 billion in long-term net inflows, with ETFs contributing $134.51 billion, led by fixed-income and equity products. This reflects broad-based demand across asset classes, client segments and geographies, supporting BlackRock's revenue diversification and organic growth prospects.
Our Take on BlackRock’s Long-term Prospects
BlackRock's expanding private markets business, strategic acquisitions and diversified investment platform position it well for long-term growth. Strong private markets inflows and fundraising further support the long-term growth outlook.
However, rising expenses remain a concern, with management expecting a mid-single-digit rise in 2026 G&A expenses, partly reflecting the HPS and Preqin acquisitions. Continued investments in private markets, technology and AI could dampen margins, making cost control critical to sustaining operating leverage and long-term growth.
Over the past year, shares of BLK have gained 14.6% against the industry’s 1.9% decline.
The Goldman Sachs Group, Inc. (GS - Free Report) is expanding its Asset & Wealth Management (AWM) business by strengthening alternative investments, active ETFs and international wealth-management capabilities. Acquisitions and partnerships are aimed at diversifying revenues, increasing assets under supervision (AUS) and building recurring fee-based businesses.
Goldman is pursuing this strategy through planned acquisitions of LCN Capital Partners and NEOS Investments. LCN will likely strengthen private real estate capabilities, while NEOS is expected to expand options-based ETFs, taking global active ETF AUS above $90 billion upon completion. The April 2026 acquisition of Innovator Capital Management further broadened the company’s ETF platform. Additionally, partnerships with IG Wealth Management in Canada and T. Rowe Price are expected to expand distribution, strengthen client reach and support long-term growth.
Franklin Templeton, Inc. (BEN - Free Report) is pursuing expansion across public and private markets by strengthening its alternative investment and digital-asset capabilities. Strategic acquisitions and partnerships are helping the company diversify its offerings, attract new assets and support long-term growth.
In September 2026, BEN’s real estate arm, Clarion Partners, agreed to acquire a majority stake in Stoneshield Capital, which is expected to triple its European AUM to $13 billion and raise pro forma real estate AUM to $82 billion. The Apera acquisition also helped alternative credit AUM reach $100 billion in fiscal 2026. Additionally, Franklin acquired 250 Digital and launched Franklin Crypto in June 2026, while partnerships with MoonPay and Payward are expanding tokenized product distribution through its Benji platform. Earlier acquisitions of Putnam, Alcentra and Lexington Partners further strengthened its investment capabilities.
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BlackRock's Private Markets Expansion: A Key Long-Term Growth Driver?
Key Takeaways
BlackRock, Inc. (BLK - Free Report) is strengthening its position in private markets through strategic acquisitions and growing client demand. The company generated $15.31 billion in private markets net inflows in the third quarter of 2026, while fundraising over the trailing 12 months touched $68 billion. The integration of HPS Investment Partners, Global Infrastructure Partners (GIP) and Preqin is boosting its capabilities and diversifying revenues.
BlackRock's above-mentioned acquisitions, as well as ElmTree Funds and SpiderRock buyouts, have strengthened its presence across infrastructure, private credit, real estate and data analytics.
BlackRock’s approximately $12-billion acquisition of HPS Investment Partners strengthened its private credit capabilities and helped raise $25 billion in its first full year. The $12.5-billion acquisition of GIP expanded the company’s infrastructure platform, positioning it to capitalize on growing demand for energy, digital infrastructure and transportation investments.
Meanwhile, the acquisition of Preqin enhanced BlackRock’s private markets data and analytics capabilities, adding coverage of approximately 210,000 funds and more than 220,000 users. Its integration with Aladdin and eFront strengthens its ability to deliver comprehensive investment insights and technology solutions.
In the third quarter of 2026, infrastructure and private credit contributed $7.58 billion and $5.01 billion, respectively, to private markets net inflows at BLK. These inflows highlight the growing contribution of the investment capabilities strengthened through the HPS and GIP acquisitions. These expanded capabilities are expected to create cross-selling opportunities, deepen client relationships and support higher-value recurring revenues.
Beyond private markets, BlackRock's diversified investment platform and growing assets under management (AUM) continue to support its growth prospects. AUM reached a record $15.49 trillion as of Sept. 30, 2026, up 15% year over year. During the third quarter, the company recorded $205 billion in total net inflows, including $174.81 billion in long-term net inflows, with ETFs contributing $134.51 billion, led by fixed-income and equity products. This reflects broad-based demand across asset classes, client segments and geographies, supporting BlackRock's revenue diversification and organic growth prospects.
Our Take on BlackRock’s Long-term Prospects
BlackRock's expanding private markets business, strategic acquisitions and diversified investment platform position it well for long-term growth. Strong private markets inflows and fundraising further support the long-term growth outlook.
However, rising expenses remain a concern, with management expecting a mid-single-digit rise in 2026 G&A expenses, partly reflecting the HPS and Preqin acquisitions. Continued investments in private markets, technology and AI could dampen margins, making cost control critical to sustaining operating leverage and long-term growth.
Over the past year, shares of BLK have gained 14.6% against the industry’s 1.9% decline.
One-Year Price Performance
Image Source: Zacks Investment Research
Currently, BlackRock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Expansion Strategy by BlackRock’s Peers
The Goldman Sachs Group, Inc. (GS - Free Report) is expanding its Asset & Wealth Management (AWM) business by strengthening alternative investments, active ETFs and international wealth-management capabilities. Acquisitions and partnerships are aimed at diversifying revenues, increasing assets under supervision (AUS) and building recurring fee-based businesses.
Goldman is pursuing this strategy through planned acquisitions of LCN Capital Partners and NEOS Investments. LCN will likely strengthen private real estate capabilities, while NEOS is expected to expand options-based ETFs, taking global active ETF AUS above $90 billion upon completion. The April 2026 acquisition of Innovator Capital Management further broadened the company’s ETF platform. Additionally, partnerships with IG Wealth Management in Canada and T. Rowe Price are expected to expand distribution, strengthen client reach and support long-term growth.
Franklin Templeton, Inc. (BEN - Free Report) is pursuing expansion across public and private markets by strengthening its alternative investment and digital-asset capabilities. Strategic acquisitions and partnerships are helping the company diversify its offerings, attract new assets and support long-term growth.
In September 2026, BEN’s real estate arm, Clarion Partners, agreed to acquire a majority stake in Stoneshield Capital, which is expected to triple its European AUM to $13 billion and raise pro forma real estate AUM to $82 billion. The Apera acquisition also helped alternative credit AUM reach $100 billion in fiscal 2026. Additionally, Franklin acquired 250 Digital and launched Franklin Crypto in June 2026, while partnerships with MoonPay and Payward are expanding tokenized product distribution through its Benji platform. Earlier acquisitions of Putnam, Alcentra and Lexington Partners further strengthened its investment capabilities.