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 Group Inc - Analyst : So why don't we start with a question on organic basis of growth, not surprisingly, it's an important metric for you guys and the one that you really trained the market to really keen in on. So BlackRock delivered 8% organic base of growth so far call it, over the last 12 months or so exceeding the 5% plus, so really lean to that plus part. With a few weeks left in 2025, how is Q4 organic base growth trending? And what are your early expectations for next year?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Great. Well, that's really helpful color, both for the near term. It's as well as how you're thinking about '26. Let's talk about expenses and margins as well for a couple of minutes. The margin story has been maybe a little bit more noisy recently. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 7:20PM, BLK.N - BlackRock Inc at Goldman Sachs U.S. Financial Services Conference You guys had a number of deals that create a little bit of funny P&L dynamics. So one, I was hoping you could just walk us through your latest thinking for --

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yeah. Funny --

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : So fair point, fair point. So when we think about the the core G&A trajectory for the firm into '26 and longer term, help us level set what that looks like on a pro forma basis, pro forma for the funny noise.

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : When you think about the cadence, I guess, of overall margin expansion, and just to double-click on that. I think you guys are at around 44% margin or so far for the year, if you look at work consensus, et cetera. 45%-plus really doesn't seem that heroic based on the things you just described, even assuming like some normal level of market returns, right? So as you think about more of like an annual margin expansion trajectory, on your way to that 45%-plus, what does that look like over the next couple of years?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yeah. I got you. Great. Okay. Let's pivot to some of the businesses. Starting maybe with the institutional channel. And given your size and just the global reach, I would love to hear your perspective on this. One of the themes we've seen recently perhaps most pronounced with CalPERS' announcement recently moving from strategic asset allocation to a total portfolio approach. It feels like that plays well into what you guys have established. But curious if you hear more institutions following their path, what does it mean for the market? What does it mean for your ability to source assets?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : The betting market.

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yeah. No, certainly feels like that. Okay. Let's turn to some of the bigger growth engines for the firm and obviously some of the recent acquisitions, starting with HPS and private credit. There's been a lot of narratives in the market over the last couple of months related to all LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 7:20PM, BLK.N - BlackRock Inc at Goldman Sachs U.S. Financial Services Conference things private credit, even though the actual tangible evidence of a broad-based deterioration in credit has been pretty minimal, at least so far. So one, hoping to get an update from you on how integration with HPS has come along. And two, given what we've learned so far, what are they seeing on the ground in terms of underlying credit trends across their private credit exposures? How are they changing if at all, if at all, the way they monitor credit disposure given some of the recent issues?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yeah, it's pretty consistent with what we're seeing for what it's worth. So let's pivot to private markets for wealth for a couple of minutes. So you mentioned HPS obviously has two flagship products that can stand on their own two feet, and we've seen them grow really nicely. You just mentioned that you're planning to expand the product line up a little bit. Maybe tell us a little bit about what you're thinking in terms of new products, whether it's in credit or perhaps other parts of the ecosystem, do you have enough capabilities to do that internally? We've seen obviously folks launch products, whether it's in private equity and secondary you have less capabilities there. How are you thinking about the holistic approach to private wealth?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : That makes sense. That makes sense. Where are you in the build-out of these additional products? Is that likely going to be '26 event, '26 launch was that going to --

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yeah. Let's talk about the 401(k) opportunity as well related to the wealth ecosystem, but particularly with respect to the targeted fund solutions as a major DCIO manager with both robust passive and obviously now private capabilities. You guys clearly have the right to win as that market continues to develop. What's the plan in terms of launching LifePath targeted funds with allocation to privates? I think that's a '26 event, but maybe spend what to build up into that. And what do you expect adoption curve and pricing to ultimately look like for these kind of products? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 7:20PM, BLK.N - BlackRock Inc at Goldman Sachs U.S. Financial Services Conference

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yeah, definitely a really exciting part of the market to watch. Okay. I probably have a question only for -- time for one more question, and I'll probably want to hit on tokenization. Just given the fact that Larry help spend a quite substantial amount of time on the last earnings call discussing this opportunity for you guys. And you -- BlackRock as a whole already touches this ecosystem in a number of different ways. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 7:20PM, BLK.N - BlackRock Inc at Goldman Sachs U.S. Financial Services Conference Obviously, there's a crypto OTF, tokens money market funds. You're the largest manager of Circle stablecoin, right? So you're already in this ecosystem. The thing that I think a lot of people have found interesting in treating is the way you talked about or the firm talked about tokenizing longer-term assets iShares, et cetera. What's the vision here? What's the commercial model? In your best guess, what does this look like 12 to 24 months from now?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Great. Awesome. All right. Well, unfortunately, we're out of time. Martin, thank you so much. I appreciate you being here.