Blackrock has evolved from a small startup to a global conglomerate. Let’s learn about this organization that works in the shadows…
You may have never heard of BlackRock, but recently it has been a hot topic on various podcasts and other media outlets.
BlackRock is one of the two largest corporations in the world. The other is Vanguard. Together, they own a stake in almost every major corporation in every major industry, which basically means they have the power to influence the world around them.
Let’s talk about BlackRock today and why it’s a name that the media is so scared of covering.
HOW BIG IS BLACKROCK?
Larry Fink founded BlackRock in 1988, and the firm is the largest Wall Street fund by assets under management (AUM). BlackRock has $10 trillion in assets under management, which is more than the GDP of every country in the world except China and the U.S.
BlackRock generates the bulk of its revenue through investment, advisory, and administration fees.
GIANT OF CORPORATE INDUSTRY
Blackrock is all over the place – from media to entertainment, banking to oil, and everything in between. If you look at all the big companies listed on the stock exchange, you’ll see that BlackRock is either their biggest stockholder or one of their biggest shareholders. They have a huge presence in Asia too, including some of the biggest names in India like Infosys and Tata.
BLACKROCK’S GLOBAL GOVERNMENT TIES
The global financial crisis provided Larry Fink with the opportunity to expand BlackRock’s reach. During the financial crisis of 2008, the Federal Reserve mandated BlackRock to manage the assets of banks at risk of insolvency. Since then, BlackRock has been providing services to the US government on a regular basis.
BlackRock has also established strong connections with China and Ukraine, including being the first foreign firm to be granted access to the mutual fund industry in China and providing advisory services to Ukraine’s Ministry of Economy.
BLACKROCK’S GIN – ALADDIN
The secret to BlackRock’s success in aiding governments around the globe is its use of a powerful technology platform called “Aladdin.” Aladdin manages over $21.6 Trillion in assets. Aladdin is BlackRock’s asset, liability and debt and derivative investment management software. Aladdin analyzes various assets and forecasts their financial risks. It’s how BlackRock keeps track of the world.
WHY YOU NEVER HEARD OF BLACKROCK?
One of the main reasons for this is that BlackRock does not produce any assets, which is why those who are not particularly involved in the financial sector are not aware of BlackRock. However, what distinguishes BlackRock from its competitors is their ability to remain hidden. Despite their immense size and presence in the financial sector, they have been able to maintain a low profile.
BlackRock also holds a significant number of shares in major media companies, which means that they are only disclosed to the public when desired.
CONCLUSION
So yeah, BlackRock is one of the largest and most influential organizations in the world.
