BlackRock expands in alternative assets with acquisitions, fueling revenue and AUM growth

BlackRock (NYSE: BLK) is deepening its push into alternative assets, seizing on rising investor demand for private credit and infrastructure investments that offer diversification beyond traditional equity markets. The segment’s lower correlation with stock market volatility has made it an attractive avenue for the asset manager. BlackRock acquired Global Infrastructure Partners (GIP) in October 2024, followed by private credit specialist HPS Investment Partners in December. In March, BlackRock acquired Preqin, a leading data and analytics provider for alternative investments.

These acquisitions are expected to fuel strong revenue growth. According to Visible Alpha consensus estimates, BlackRock’s total revenue is projected to rise +16% year-on-year to $23.6 billion in 2025. Investment advisory, administration fees, and securities lending—the company’s largest revenue stream—is forecast to increase revenue by +17% to $18.8 billion, while revenue from its growing technology services division is expected to climb +26% to $2 billion.

The asset manager’s total assets under management (AUM) are anticipated to reach $12.2 trillion, with alternative investments set to deliver the fastest growth, rising +54% year-on-year. Despite this rapid expansion, alternatives will still account for just 4% of total AUM, with equities (54%) and fixed income (25%) continuing to dominate. Even so, BlackRock’s recent acquisitions highlight its strategic pivot, positioning the firm to capitalize on institutional investors’ appetite for higher-yielding, diversified opportunities.