BlackRock, the world’s largest asset manager, reported a rise in its first-quarter profit. While total net inflows were USD 130 billion, the asset manager’s iShares ETFs emerged as a major growth engine. Its private markets business drew inflows of USD 9 billion in the same quarter.
BlackRock reported a net profit of USD 2.21 billion, or USD 14.06 per share, for the quarter. Its adjusted earnings were USD 12.53 a share, topping analysts’ expectations by 99 cents. Assets Under Management (AUM) stood at USD 13.89 trillion, up from USD 11.58 trillion a year earlier.
Investment advisory performance fees reached USD 272 million in the first quarter, a significant spike above USD 60 million in the same period in 2025. However, the world’s largest asset manager has a headache to deal with: its stock value is down over 2% in 2026, lagging behind its smaller rival, State Street.
Investors have closely monitored the health of BlackRock’s investments in private credit, an industry that has attracted large amounts of investor capital in recent years but has recently experienced significant outflows from some managers. The 2025 bankruptcies of US auto parts supplier First Brands and car dealership Tricolour highlighted the risks in a sector criticised for a lack of transparency.
BlackRock had USD 320.4 billion in assets in its private markets business in the first quarter, down from USD 322.6 billion at the end of 2025. The figures also included USD 9.1 billion in net inflows and USD 8.5 billion of returns of capital, along with a USD 2 billion drop in market values.
As per CEO Larry Fink, demand for private credit products has remained “structural,” reflecting the retreat of banks from some markets following the 2008 financial crisis and increasing global debt figures.
“While retail investors have pulled back from some private credit funds, institutional demand is accelerating,” Larry Fink said, as the higher returns and low leverage of private credit offerings have made these entities (the funds) a core part of how investors build portfolios.
“The wider spreads in the market point to shifting short-term sentiment that may create challenges for some providers, a situation that favours BlackRock competitively,” Larry Fink concluded.