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BlackRock/BLK is expanding rapidly in private-credit.
H P S Investment Partners was thinking of an IPO, but BLK bought it for $12 billion (price at 8.1% of AUM seems high, but is paid in BLK stock near all-time high).
In 2024, BLK also bought Global Infrastructure Partners ($12.5 billion) & Preqin ($3.5 billion).
When all done, BLK will have $220 billion AUM in private-credit, 19% of total AUM.
Why is Ms. Khan ok with this? BLK also gets a lot of federal govt business - just getting too big and is able to sway sentiment with whatever fancies it to get more business.
BLK has been more profitable since its 1999 IPO than the Nasdaq or S&P indices, returning 20.7% per annum. That kind of performance means the shareholder could easily afford an accountant to figure out the K-1 form at tax time.
Comments
When are they launching their private credit ETF?
https://www.blackrock.com/us/financial-professionals/literature/fact-sheet/bdc-fact-sheet.pdf
BIZD
https://x.com/Schuldensuehner/status/1841113085873930379/photo/1
Personally, I would be cautious at this time...