Blackrock Case Study

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BlackRock is an asset management firm. Today it is one of the world’s largest asset managers, managing and investing trillions of dollars on behalf of its clients with over 120 investment teams in 30+ countries. BlackRock’s clientele range from large powerful institutions and national governments to simple parents, grandparents and teachers, who are saving for their retirement, their children’s educational future and a better life, coming from all corner of the world.

History and Heritage
BlackRock was born in 1988, comprised of only eight people at the time, one room and a belief that they could build a better asset management firm. They all shared a common idea and determination to put the clients, needs and interests first and a dedication to clear thinking, fact-based, data-driven investing and a passion for understanding and managing risk.
BlackRock was born under the umbrella of The Blackstone Group. The firm initially focused solely on fixed-income. By listening to and understanding their client’s needs that were unmet, their firm was able to progress. It developed important early innovation in relation to closed-end funds, trusts, defined contribution plans and many more. One such innovation was Blackstone Term Trust, which was able to accumulate $1 billion and put the business on a steady path for growth and success.
By 1992, the firm had taken on the name BlackRock. At the end of the year BlackRock had $17 billion in assets under management. By the end of 1994 BlackRock had $53 billion in assets under management.
By 2005, BlackRock had strengthened its fixed-income, equity and advisory business. The company now was making a series of mergers, transforming the company, now adding core investment competencies. Th...

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...tan that did not profit. Although the recent volatility in the financial markets may be good for business among anxious customers, they could end up hurting the firm as well. “If you're worried about market declines, you have to be worried about BlackRock,” says Larry Fink, CEO of BlackRock. “We're the largest investor in the world. We have more beta [market exposure] than we ever had before.” As big as the company may be, the company cannot create its own climate yet.
BlackRock is the world’s largest asset management firm. It has seen a lot of success in its lifetime. But now the success is more of a curse then a blessing. The company is getting too big to manage, more difficult to make profit like it did in the past and too big to operate efficiently. This is the biggest fear and it is coming true. Only time will tell if the company will stand the test of time.

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