BlackRock Inc Q3 2025 Earnings Call Transcript

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

Question: Craig Siegenthaler - BofA Global Research - Analyst : Hey, good morning, Larry. Hope everyone is doing well. My question is on the breadth of the 10% base or the organic growth in the quarter. So we can all see that iShares was the major driver of the AUM flows. But I was curious on what the contribution looked like on a revenue-adjusted basis, really because it looked like alts, digital assets and systematic, all a pretty sizable when you look at it on a Phase 3 basis. Thank you, Larry.

Question: Michael Cyprys - Morgan Stanley - Analyst : Just wanted to ask about tokenization. I was hoping you could talk about your ambitions and steps that you're taking there, including how you might go about tokenizing ETFs. You already have the tokenizes Muddy fund with (inaudible). So hope you could talk about some of the traction there you're seeing? And more broadly on use cases, how you see this all developing? And when we think about tokenization, curious your views on what's been the holdback from wider adoption of this technology has been around for some time. What do you see as the major unlock here?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Hi, Larry. Good morning, everybody. Question for you guys around private credit. The market has grown increasingly anxious given some of the recent dynamics, both related to perhaps growth, kind of amid lower rates and data spreads as well as some of the kind of specific credit names out there. Curious what the HPS team is seeing on the ground, both with respect to kind of credit trends across their direct rent lending portfolios in the third quarter? And any growth implications you're seeing for the asset class broadly from lower rates and tighter spreads? Thanks.

Question: Kenneth Worthington - JPMorgan Chase & Co - Analyst : Hi, good morning, thanks for taking the question. You mentioned throughout the call the success you're having in your active ETFs. There's been recent developments to potentially create ETF share classes for mutual funds. What could this mean for BlackRock? And do you think this could change the ETF landscape?

Question: Brennan Hawken - BMO Capital Markets - Analyst : Hi Larry, thanks for taking the question. You spoke to this a little bit in your prepared remarks, but I was hoping to get maybe a bit more color on it. You guys have now done two rather substantial mergers with the private asset side. And BlackRock's got a very strong M&A track record. But these businesses are kind of different than a lot of the sort of platform approach given how alpha-oriented they are. So I was hoping to hear a little bit about how you're adjusting the approach to integration in order to maintain that One BlackRock approach even though these businesses are rather different?

Question: Brian Bedell - Deutsche Bank - Analyst : Oh great, thanks. Good morning. Good morning. Thanks for taking my question. A lot of good things to talk about. I think you can tie two concepts together, the tokenization concept that you discussed and then tying that with maybe model portfolio. So as you think about exploring tokenization opportunities, do you envision having this the BlackRock centric digital wallets or rather participate in the broader intermediated ecosystem allowing your products to be tokenized there for sort of open distributed on an open architecture basis. And then tying it into model portfolios, is there an opportunity to create BlackRock centric digital wallet model portfolios?

Question: Benjamin Budish - Barclays Capital - Analyst : Hi, hi. Good morning, Larry. Thanks for taking the question. I wanted to ask just a few housekeeping questions on HPS and the private markets business. I guess maybe two, I can wrap into one. First, just on the performance fees. I think the 270 reference came in a bit ahead of what was sort of implied by the guidance last quarter. So curious what came in better than expected. And then just looking at your private markets flows, those sort of stepped up nicely sequentially as they did earlier in the year when you acquired GIP. Just curious if we're looking at fair sort of run rate as we think out over the next several quarters or anything unusual about this quarter? Thank you.

Question: Bill Katz - TD Cowen - Analyst : (multiple speakers) Okay, thank you very much. Good morning, everybody. Thank you so much for taking the question today. Maybe switch gears a little bit and talk about the retirement area. You seem to be ahead of many of your peers in terms of positioning as we look ahead. Could you speak to a couple of things, just how your conversations with maybe the consultant community, the regulators, the legislators are going around, so this change? And then how you sort of see pricing relative to maybe the legacy book of business that's sort of that retirement? Thank you.