BlackRock Inc., the world's largest asset manager, reached a record $11.6 trillion in assets under management in the fourth quarter of 2024, fueled by a surge in client cash inflows and expanding investments in private markets. The firm reported a 21% increase in quarterly profits, highlighting its ability to navigate volatile markets and attract substantial investor capital.

"BlackRock enters 2025 with more growth and upside potential than ever," said CEO Larry Fink in a statement on Wednesday, describing the record-breaking results as "just the beginning."

The New York-based company recorded $281.4 billion in total net inflows during the quarter, significantly exceeding analysts' expectations. Of these, $201 billion were directed toward long-term funds, with exchange-traded funds (ETFs) alone accounting for $142.6 billion. The firm's fixed-income products also saw strong demand, bringing in $23.8 billion.

For the full year, BlackRock attracted $641 billion in client cash, surpassing the total assets of some smaller competitors. Fink emphasized the firm's resilience, stating, "For many companies, periods of M&A contribute to a pause in client engagement. At BlackRock, clients are instead embracing and rewarding our strategy."

BlackRock's expansion into private markets and alternative investments has played a pivotal role in its growth. The firm spent nearly $30 billion in acquisitions last year, including its $12.5 billion purchase of Global Infrastructure Partners and a $12 billion deal to acquire private-credit shop HPS Investment Partners. These moves have positioned BlackRock to compete with industry heavyweights such as Blackstone, KKR, and Apollo Global Management.

The acquisitions are part of a broader strategy to diversify revenue streams and strengthen its foothold in alternative assets. The firm is also in the process of closing a £2.55 billion ($3.1 billion) deal for data firm Preqin Ltd., further enhancing its capabilities in data-driven investment strategies.

Quarterly revenue rose 23% to $5.7 billion, while net income climbed to $1.67 billion, or $10.63 per share, up from $9.15 per share a year earlier. Full-year revenue exceeded $20 billion, a 14% increase over 2023.

The firm's assets have benefited from strong equity market performance, with the benchmark S&P 500 index gaining 2.1% in the fourth quarter and finishing the year up 23.3%. "Strong asset inflows this quarter contributed to a record-setting year for BLK," said Kyle Sanders, senior equity research analyst at Edward Jones. He added, "This should boost investor confidence that the long-awaited great rotation, where investors move off the sidelines and start to 're-risk' by investing in equity and fixed-income products, is beginning to materialize."

BlackRock's growing ETF business has been a standout contributor, with $390 billion in inflows last year. Additionally, the firm's bitcoin ETF, launched in early 2024, has amassed over $50 billion in assets, highlighting the growing investor appetite for cryptocurrency-linked products.

Despite the impressive results, BlackRock shares have faced headwinds in 2025, declining 6% amid concerns over the Federal Reserve's interest rate strategy. However, the company's 26% gain in 2024 outpaced the S&P 500's 23% increase.