"You can't ignore macro pressures." BlackRock's lucrative betīlackRock's pitch is straightforward: You and your portfolios can do it all with Aladdin's software, which we've always used ourselves! Private markets! Cryptocurrency markets! Climate risk! Plain-old accounting!Īladdin helps 950 clients ranging from rival asset managers to financial advisors and insurance companies manage money and spot risk across asset classes - for instance, showing when a portfolio is over-allocated to an asset.īlackRock has long had ambitious plans to make Aladdin the " language of portfolios" across asset management and a key revenue driver for the firm. "To get new business, Aladdin may have to sharpen their pencils, despite the fact that I do think they still retain a best-in-class position," Seifert said. But years ago, the firm didn't also have a long roster of startups and legacy firms actively taking a page from its playbook. A crowded playing field is emerging and firms forecast a recession, suggesting companies will tighten their belts and may not pony up for top software.Īladdin has seen market shocks before. Now Sudhir Nair, the longtime BlackRock executive who runs the Aladdin business globally, and his sprawling business face a test: Keeping that momentum. With sticky client relationships and foothold in the market, Aladdin was a source of revenue that is far more insulated from the market carnage than BlackRock's main business. In essence, the business - a home-grown system that BlackRock invented decades ago and sells to other firms - did what it was supposed to do. "2022 was a good litmus test for the BlackRock model vis-a-vis Aladdin," said Cathy Seifert, a senior equity analyst at CFRA Research. BlackRock said Aladdin drew record new mandates - which includes winning new clients and selling additional services to existing ones - in the first nine months of 2022, and in that time generated record revenue of just over $1 billion. Have an account? Log in.īut consider Aladdin, the firm's powerful and widely used risk-analytics and portfolio-management technology that analysts often view as the most robust software of its kind. This story is available exclusively to InsiderĪnd start reading now. Account icon An icon in the shape of a person's head and shoulders.
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