BlackRock CEO Larry Fink wants his company to be the cornerstone.
The world's largest investment manager has already penetrated the entire wealth management industry thanks to its Aladdin Risk software and is leading the passive investing revolution with its iShares franchise.
Now, BlackRock's next transformative moment will be building the foundation that other companies need to transform their businesses. The $10.5 trillion asset management company is focused on infrastructure, and Fink said on the company's first-quarter earnings call on Friday that the $12.5 billion deal with Global Infrastructure Partners will give the company i.e. He said he believes it will have the same impact as buying the Shares franchise. Barclays was 15 years ago.
One of the biggest reasons why Fink is committed to becoming the go-to capital provider for construction companies and growing countries is the coming artificial intelligence revolution, which is already starting to benefit his company. He said the company's assets are $2 trillion higher than they were two years ago, but the number of employees is about the same due to increased productivity due to advances in technology, including AI.
On the infrastructure side, the company envisions it as capital for new data centers and power generation facilities that AI-driven companies will need.
“When you combine what infrastructure is going to do in terms of increasing power with the expectations of AI and the need for data centers, the power needs are going to be extraordinary,” he said on a conference call. ”All of this will lead to greater opportunities. ”
The company's top priority now is closing the deal, which executives hope will close by the third quarter of this year, barring any disputes with regulators.
Once GIP is acquired, Mr. Fink and other BlackRock leaders plan to embark on an ambitious fundraising effort for private markets infrastructure projects. Fink spoke about getting the product on retail and retirement platforms in Europe, and the recent $600 million partnership between BlackRock and Santander, which saw the company provide financing for telecom, power and energy projects. There is.
”Demand for all forms of infrastructure is skyrocketing around the world, from communications networks to power generation, data center transportation hubs, and new ways to secure energy. ” Fink said the expansion is a way for BlackRock to capitalize on the macro moment.
