BlackRock posted a powerful start to the year, drawing in $130 billion in net capital during the first quarter, propelling the world’s largest asset manager’s profitability past Wall Street expectations. Chief Executive Larry Fink characterized the performance as “one of the strongest starts to a year in BlackRock’s history,” driven substantially by its iShares ETF business and higher-fee product adoption.

Profitability soared, with net income jumping 46 percent year-over-year to $2.2 billion on revenues of $6.7 billion, a rise exceeding a quarter. This strong showing reflects the firm's strategic pivot toward alternatives, including private markets, which generated $9 billion in inflows despite recent industry jitters. Base fees, excluding performance incentives, climbed 24 percent.

Investors reacted positively, sending shares up nearly 5 percent Tuesday to $1,072. The results arrive as the private credit sector faces mounting scrutiny over potential risks tied to AI-exposed portfolio companies. Nevertheless, BlackRock executives maintained confidence in sustained institutional demand for private credit offerings, citing strong fundraising.

These inflows, which included $72 billion into equity funds, demonstrate the success of the strategy established after major acquisitions like HPS Investment Partners. The firm continues its aggressive push to double its market value by 2030 through alternative asset expansion, even as redemption pressures surfaced in specific areas.