BlackRock is often referred to as the 'owner of the world'. This is a bold, yet inaccurate, claim. In reality, BlackRock is the world's largest company managing other people's money. By the end of 2025, BlackRock had approximately $14 trillion under management, and the company's revenue was around $24.2 billion.
How it works
A pension fund, an insurance company, or a private investor entrusts money to an asset management company. BlackRock then invests these funds in stocks, bonds, and other assets—either independently or according to predetermined rules.
In return, the company earns a commission.
This means BlackRock does not own all the assets it manages. For instance, if a BlackRock fund purchases Apple shares, those shares belong to the fund's investors. BlackRock merely manages them and, in some cases, casts votes on them at shareholder meetings.
Company History
BlackRock was founded in 1988 by Larry Fink and seven partners. Prior to this, Fink had worked at the investment bank First Boston, where his division suffered significant losses due to misjudgments in the mortgage and debt securities market. This experience influenced BlackRock's future specialization: from its inception, the company placed great emphasis on risk control, portfolio valuation, and bond management.
BlackRock was initially established with the backing of The Blackstone Group and was named Blackstone Financial Management. In the early 1990s, it achieved independent status and began to develop under its own brand. In 1994, Blackstone exited the business, and BlackRock continued operating as an independent company.
In 1999, BlackRock conducted an initial public offering (IPO) on the New York Stock Exchange. A crucial milestone in its growth was the 2009 acquisition of Barclays Global Investors, which included the iShares division. The deal was valued at approximately $13.5 billion. Following this acquisition, BlackRock significantly strengthened its position in the ETF market and became the world's largest asset manager.
The Source of Its Scale
BlackRock's primary growth driver is its exchange-traded funds (ETFs) under the iShares brand.
An ETF allows investors to gain exposure to dozens or hundreds of stocks with a single purchase. For example, a fund might track an index of major U.S. companies, global equities, or government bonds.
This investment method is popular because:
- it helps to quickly diversify investments;
- it is typically more cost-effective than active management;
- it does not require individual stock selection;
- and it is accessible to both large funds and private investors.
In 2009, BlackRock acquired Barclays Global Investors from Barclays, including the iShares brand. This transaction significantly bolstered the company's standing in the ETF market.
Why BlackRock Influences Companies
When a BlackRock fund tracks an index, it purchases shares of the companies included in that index. Consequently, BlackRock often ranks among the largest shareholders of corporations such as Apple, Microsoft, and ExxonMobil.
The company can cast votes on these shares at shareholder meetings, addressing matters such as director elections, executive compensation, or major transactions.
However, it is important to note: BlackRock representatives typically do not sit on the boards of directors of these companies. They vote on behalf of clients' shares and engage in discussions with corporate management.
BlackRock, along with Vanguard and State Street, is often referred to as the 'Big Three' of major index managers. Economists are examining whether owning stakes in multiple competing companies simultaneously can impact competition. However, this remains a subject of academic debate, not proof that BlackRock controls all sectors of the economy.
What is Aladdin?
Aladdin is BlackRock's technological system for portfolio and risk analysis. It helps assess how asset values would change during interest rate hikes, stock market declines, or a deterioration in companies' financial health.
This platform is utilized not only by BlackRock's divisions but also by some institutional investors. However, Aladdin is not the 'single brain of the world economy' but rather a commercial software suite. The frequently cited figure of $20 trillion in assets supposedly managed through the system refers to previous public estimates and is not an accurate current indicator.
Why the Company Faces Criticism
BlackRock receives criticism from various angles.
Environmental activists argue that the company is not stringent enough with the oil and gas sector. Conservative politicians, conversely, accuse it of advancing climate and social agendas through its proxy voting.
Furthermore, the concentration of influence among a few large asset managers raises concerns. If the same investors hold substantial stakes in several competing corporations simultaneously, the question arises: does this weaken competition among them?
BlackRock, however, emphasizes that it manages client money, reduces investment costs, and does not dispose of all assets at its own discretion.
Key Takeaways
BlackRock is neither a secret government nor a company that directly owns the world economy. It is an enormous financial intermediary.
It gathers money from millions of investors, invests it through funds, votes client shares, and provides large organizations with risk management technologies.
Its influence is indeed significant. However, this influence stems not from clandestine control, but from its business scale: vast asset volumes, the popularity of ETFs, and stakes in numerous publicly traded companies.
