BlackRock started in 1988 when eight friends had a big idea to help people manage their money better. It helps millions of people save for things like buying a house or retiring. It also helps big companies and even governments manage their money. In short, BlackRock plays a big role in how money moves around the world. From its small beginnings, BlackRock grew into a massive company. Today, it manages a whopping $10.5 trillion! That’s more money than most countries have. But have you ever wondered who owns BlackRock? Let’s find out!
How BlackRock is Owned
BlackRock isn’t owned by just one person or company. Instead, it’s owned by many different people and institutions. This is because BlackRock is a public company. This means anyone can buy a small piece of the company by purchasing its stock.
BlackRock also owns part of itself. This isn’t as strange as it sounds as it is standard practice for companies to buy their own shares. For BlackRock, this self-ownership is about 6.46% of the company.
But here’s an interesting fact: while this seems like a lot, it’s actually a tiny part of what BlackRock invests in. Most of BlackRock’s investments are in other big companies like Microsoft, Apple, and Amazon.
As of April 2024, BlackRock had about 148.6 million shares of stock. Each share was worth about $718. If you do the math, that means the whole company was worth around $116 billion!
The Institutions Behind Who Owns BlackRock
Most of BlackRock’s owners are institutional investors. These are groups that manage money for lots of people, like pension funds or other investment companies. Institutional investors own about 51.78% of BlackRock. These institutions get to vote when the company wants to make important decisions.
Here are the top five institutional owners of BlackRock:
- Vanguard Group (owns about 8.87%).
- BlackRock itself: Interestingly, BlackRock owns about 6.46% of its own shares.
- State Street Global Advisors (owns about 3.98%)
- Bank of America (owns about 3.49%)
- Temasek Holdings: This company is owned by the government of Singapore and it has a 3.44% stake in BlackRock.
Who Owns BlackRock? Analyzing The Individuals
While big companies own most of BlackRock, some individuals own significant parts too. Many of these people helped start the company or work there now. These individual owners are important because they help make big decisions for the company. Their personal stake in BlackRock means they really care about how well it does.
Here are the top five individual owners:
- Susan L. Wagner: She is one of BlackRock’s founders, and she owns about 427,887 shares (0.28% of the company).
- Larry Fink: He is the CEO and Chairman of BlackRock, and he owns about 414,146 shares (0.27%).
- Robert S. Kapito: He is the President and one of the founders of BlackRock. He owns about 217,127 shares (0.14%).
- Richard Kushel: He is a top executive at BlackRock, and he owns 67,107 shares.
- Murry S. Gerber: He is a long-time board member, and he owns 42,648 shares.
Who Has More Say: Institutions or Individuals?
When it comes to making decisions at BlackRock, the big institutional investors have more power. This is simply because they own more of the company. All shareholders get to vote on important matters, but the more shares you own, the more your vote counts.
However, the individuals who help run the company, like Larry Fink, also have a big influence. Even though they might own fewer shares, their knowledge and experience carry a lot of weight.
How Ownership Affects BlackRock
The way BlackRock is owned affects how it’s run. Having many different owners can be good because it brings in different ideas. But it also means BlackRock has to listen to lots of different voices when making decisions.
The fact that many owners are big investment companies might influence what kinds of investments BlackRock makes. And since the founders still own parts of the company, they have a personal interest in making sure it does well.
Final Thoughts on Who Owns BlackRock
BlackRock isn’t the only big company that manages money; it has notable competitors like Vanguard and State Street. However, BlackRock is unique in some ways and this can be directly or indirectly linked to how it is owned.
For example, BlackRock has a higher percentage of institutional shareholders than many similar companies and this shapes its identity. Also, the company enjoys special management because many of its founders still own significant parts of the company.
Ownership of big companies like BlackRock can change over time. People or companies might buy or sell shares. Recently, there haven’t been any huge changes in who owns BlackRock. But the financial world is always changing, so this could shift in the future.
