BlackRock's Fink Stakes Future on Private Markets Access

What's New

In his 2025 Annual Chairman's Letter, BlackRock CEO Larry Fink unveils his vision for democratizing private markets, citing the firm's transformative acquisitions of Global Infrastructure Partners (GIP), Preqin, and HPS Investment Partners to bridge the public-private market divide.

Fink argues that "assets that will define the future—data centers, ports, power grids, the world's fastest-growing private companies—aren't available to most investors. They're in private markets, locked behind high walls, with gates that open only for the wealthiest or largest market participants."

Why It Matters

While private markets have traditionally been exclusive due to "risk, illiquidity, and complexity," Fink believes these barriers can be overcome through innovation. This shift comes as BlackRock transitions from being "first and foremost—a traditional asset manager" into one that can help everyday investors access previously restricted assets through its expanded platform.

Big Picture Drivers

• Infrastructure need: The world faces a staggering $68 trillion global demand for new infrastructure investment by 2040, equivalent to "building the entire Interstate Highway System and the Transcontinental Railroad, start to finish, every six weeks—for the next 15 years."

• Public funding gaps: Governments burdened by historic deficits and even large tech companies with billions in free cash flow cannot shoulder these costs alone, creating an opening for market investors.

• Privatization trend: Most infrastructure projects and companies are now in private markets, with 81% of U.S. companies with over $100 million in revenue privately held (higher percentages in EU and UK), making them inaccessible to regular investors.

• Portfolio evolution: The traditional 60/40 stock/bond portfolio model is giving way to a 50/30/20 model (stocks/bonds/private assets) that adds infrastructure for inflation protection, stability, and better returns.

• Bank financing decline: Banks can no longer meet the capital demands of growing companies, creating opportunity for private credit to step in and fill the gap.

By The Numbers

• $68 trillion: Global infrastructure investment needed by 2040

• 6 weeks: How often we'd need to build something equivalent to the entire Interstate Highway System through 2040

• 81%: Percentage of U.S. companies with over $100 million in revenue that are privately held

• Private credit assets projected to more than double by 2030

• 14.5%: Additional wealth accumulated over 40 years with 0.5% higher annual returns from private assets

Key Transactions

• GIP acquisition: Gives BlackRock clients access to infrastructure including London's Gatwick Airport, energy pipelines, and over 40 global data centers

• Ports announcement: Agreement to create network of 43 ports across 23 countries, with one in every 20 shipping containers globally passing through these ports

• Preqin acquisition: Adds data capabilities tracking over 190,000 funds and 60,000 managers to increase private market transparency

• HPS acquisition: Positions BlackRock in private credit as this market is projected to double by decade's end

Key Quotes

• Market transformation: "BlackRock has always had a foot in private markets. But we've been—first and foremost—a traditional asset manager. That's who we were at the start of 2024. But it's not who we are anymore."

• Portfolio evolution: "The future standard portfolio may look more like 50/30/20—stocks, bonds, and private assets like real estate, infrastructure, and private credit."

• Market unlocking: "With clearer, more timely data, it becomes possible to index private markets just like we do now with the S&P 500. Once that happens, private markets will be accessible, simple markets."

• Historical comparison: "Now, we see an opportunity to do for the public-private market divide what we did for index vs. active."

Key Trends to Watch

• BlackRock is using its acquisitions to create a data-driven approach to private markets, with Preqin's comprehensive dataset enabling greater transparency similar to "what Zillow did for housing."

• The firm aims to eventually index private markets like the S&P 500, making them "accessible, simple markets. Easy to buy. Easy to track."

• Innovation in private market access could democratize ownership of critical infrastructure, including data centers, which require massive capital investment.

• Partnerships with technology leaders like Nvidia, Microsoft, and xAI are positioning BlackRock to fuel development of AI infrastructure through private market investments.

The Wrap

BlackRock's transformation mirrors its 2009 acquisition of Barclays Global Investors (BGI), which helped bridge the index vs. active investment divide. Just as that move gave investors unprecedented flexibility to blend investment strategies, Fink believes the firm's private market acquisitions will similarly reshape investment access, unlocking previously restricted opportunities for everyday investors while fueling critical infrastructure development, particularly in areas like data centers and energy that will define the world's economic future.