BlackRock Inc at Goldman Sachs U.S. Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Alexander Blostein - Goldman Sachs & Co - Analyst : So let's talk about our organic base growth. It's an important metric for you guys. It's obviously a critical metric for the market and investors as they evaluate BlackRock. From the public data, it looks like Q4 is off to kind of continued momentum and you talked about being sort of closer to the sort of 5% organic base fee growth in the third quarter. How are you thinking about that for 2025, and that's without the recent deals, we, of course, we'll get to that in a minute.

Question: Alexander Blostein - Goldman Sachs & Co - Analyst : Great. Let's dig into some of these for a few minutes. So fixed income is definitely top of mind. I mean it's something that I feel like you guys get asked about on every earnings call, and it's been a little bit of like kind of waiting for Goodell, right? Like there's a lot of cash on the sidelines. There's still a lot of cash in time lines and like when is it fine to go and make (inaudible) income. It feels like it's starting to happen. So can you spend a couple of minutes on what the client sentiment is with respect to fixed income and really the forms of fixed income, and where the activity is likely to unfold next year.

Question: Alexander Blostein - Goldman Sachs & Co - Analyst : Great. Okay. I'm going to spend the next maybe 10-plus minutes or so on private markets. It's been, as I said, an incredibly busy year for you guys on the acquisition front. You talked about that being an important strategic area for growth as well. So let's kind of dig in here. First, let's touch on GIP. You guys closed this deal recently. Maybe give us an update on how integration is going so far and level set for us your expectations for management fee growth in that business into 2025? What are kind of some of the key areas of growth for the next 2 years?

Question: Alexander Blostein - Goldman Sachs & Co - Analyst : Great. Well, you guys will stay busy with a couple of things because HPS is also on the comp. So let's talk a little bit about that. Great platform gives you instant scale in private credit and really diversified part of private credit, right? It's not just direct lending, it's differentiated, direct lending, it's a asset back finance. It's a number of things of where the buck is going in the market. The 2 kind of growth lanes that really resonated with me and I think a lot of investors is what you guys could do together in insurance and wealth, right? So you talked about $700 million of insurance capital you already managed. So what's the addressable market within your internal client base? Like how much of that could you cross-sell how long would it take? And then what are you guys planning to do on the wealth side, right?

Question: Alexander Blostein - Goldman Sachs & Co - Analyst : How do you think their ability to originate into that, right? Because when I hear about hundreds of billions of dollars and taking a (inaudible) of that, that's a lot of assets that could kind of come their way. Do they have enough capacity to originate the paper that actually is required to meet the requirements kind of of the client base you're going after? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 10, 2024 / 7:20PM, BLK.N - BlackRock Inc at Goldman Sachs U.S. Financial Services Conference

Question: Alexander Blostein - Goldman Sachs & Co - Analyst : I got you. Great. All right. Let's hit on the third leg of the stool here with Prequin. It's slightly different transactions, obviously, not an asset management transaction. It's a data deal that has a first order impact on Aladdin, your technology business. But I do want to talk about implications this could have for BlackRock's asset management capabilities with respect to potential indexation and product creation that could come out down the road from that. What could that look like?

Question: Alexander Blostein - Goldman Sachs & Co - Analyst : Just don't change the price.

Question: Alexander Blostein - Goldman Sachs & Co - Analyst : Great. Well, speaking of indices, I don't want to get out of this conversation without talking about iShares. I know we spent a lot of time talking about private markets, but iShares is still your fastest-growing business has done phenomenally well over the years. You spoke to both bond ETFs as well as non-U.S. being big drivers. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 10, 2024 / 7:20PM, BLK.N - BlackRock Inc at Goldman Sachs U.S. Financial Services Conference We kind of hit on that already a little bit. So maybe just double-click on what your thoughts on both of these into '25. And I do also want to touch on active ETFs. It's been a really powerful growth theme for traditional asset management space, probably one of the better trends in the space we've seen in many years. So what are your thoughts around that? How big is BlackRoch are going to be in that part of the market?

Question: Alexander Blostein - Goldman Sachs & Co - Analyst : Yes. All right. We got about 2 minutes left, and I'm going to bore you with a CFO-related question because we spent a lot of time on this.

Question: Alexander Blostein - Goldman Sachs & Co - Analyst : Here you go. Let's talk a little bit about the margins. It's an important topic. I know you guys talked about the financial rubric for BlackRock...

Question: Alexander Blostein - Goldman Sachs & Co - Analyst : Margin aware. So as you think about the forward, I don't know if you're ready to talk about 2025 and kind of how you're thinking about the expense base. But assuming normal market conditions, how do you think the trajectory for BlackRock will look over the next couple of years. But if you do want to talk about '25, you're welcome to.

Question: Alexander Blostein - Goldman Sachs & Co - Analyst : Just remember Prequin, pricing increase none.

Question: Alexander Blostein - Goldman Sachs & Co - Analyst : Great. Okay. Well, Martin, thank you very much. We're out of time.