BlackRock achieves record assets despite decline in turnover
BlackRock $BLK (-0.36%) achieved an impressive record of 12.5 trillion dollars in assets under management in the second quarter of 2023. But behind this glittering figure lies a dark cloud: at 5.42 billion dollars, turnover fell short of analysts' expectations, who had expected 5.44 billion dollars. The reason for this revenue shortfall? An institutional client withdrew a whopping 52 billion dollars from the index funds, which significantly reduced net inflows. In the final hours of trading, the markets reacted sensitively: the shares fell by almost 6% after previously reaching an all-time high. Despite these setbacks, BlackRock has still been able to record an increase of around 3% in equities since the beginning of the year.
In addition to the revenue woes, BlackRock announced that the acquisition of HPS Investment Partners for $12 billion was completed as early as July 1, 2023. This acquisition brings with it not only 165 billion dollars in client assets under management, but also 118 billion dollars in fee-based assets. The question remains as to whether this strategic decision can strengthen the company in the long term or whether the current challenges will overshadow the positive effects.
René Benko faces serious charges
In the world of real estate, René Benko, who was celebrated as the star of the industry, is now facing serious legal difficulties. Prosecutors have brought charges against him based on various allegations, the details of which have not yet been disclosed. According to reports, the investigation includes extensive evidence pointing to a possible legal dismantling of his business. Benko was known for his aggressive acquisition strategies, which brought him both fame and criticism. His current situation not only raises questions about his personal future, but could also have far-reaching implications for his legacy in the real estate world. The industry is watching with interest to see how the situation will develop.
Sources:
https://finance.yahoo.com/news/blackrock-stock-tumbles-revenue-misses-160133670.html