BlackRock vs. Blackstone: Comparing the Investment Giants

Key Differences Between BlackRock and Blackstone

BlackRock and Blackstone are two of the world's largest investment management companies. While they share some similarities, there are also key differences between the two firms that investors should be aware of.

One of the most significant differences between BlackRock and Blackstone is their company structure. BlackRock is a publicly traded company, while Blackstone is a privately held firm. This difference in structure gives BlackRock greater access to capital and liquidity, while Blackstone has more flexibility in terms of its investment strategy.

Another key difference between the two firms is their investment approach. BlackRock is primarily an asset manager, while Blackstone is a more diversified firm that also engages in private equity, real estate, and other alternative investments. This difference in approach means that BlackRock's clients are primarily institutional investors, while Blackstone's clients include a mix of institutional and individual investors.

Who is Bigger: BlackRock or Blackstone?

In terms of assets under management (AUM), BlackRock is significantly larger than Blackstone. As of June 2023, BlackRock had approximately $10 trillion in AUM, while Blackstone had approximately $950 billion in AUM.

Why Did BlackRock Split from Blackstone?

BlackRock was founded in 1988 by Laurence Fink and Robert Kapito. The firm began as a risk management and fixed income investment company. In the late 1990s, Blackstone acquired a majority stake in BlackRock. However, in 2006, BlackRock went public and became an independent company.

The reasons for the split between BlackRock and Blackstone are not entirely clear. However, it is likely that Fink and Kapito wanted to have more autonomy in running BlackRock and to take advantage of the opportunities available to a publicly traded company.