Good morning, everyone, and thank you for joining us today. I'm Caroline Rodda, and I look after investor relations at BlackRock. We've had a few things going on since our last Investor Day in 2023, and we're glad to have you here with us for an update on that journey. A few housekeeping items before we get started: you can find a PDF of all our presentations on BlackRock's Investor Relations website. As they say, it's hard to predict the future. We encourage you to look after our disclosures. Throughout the event, we'll make a number of forward-looking statements. We call your attention to the fact that BlackRock's actual results may differ from these statements. BlackRock has filed reports with the SEC, which lists some of the factors that may cause the results of BlackRock to differ materially from what we say today.
BlackRock assumes no duty and does not undertake to update any forward-looking statements. We're scheduled to take two 15-minute breaks around 9:40 A.M. and 11:15 A.M. Eastern Time, and we'll host a live Q&A session immediately after our presentations conclude at approximately 12:15 P.M. You may also submit questions throughout the day through the webcast or by emailing the Investor Relations alias at the bottom of the screen. Thank you again for joining us today, and it's now my pleasure to introduce Rob Kapito, BlackRock's President and Co-founder, to get us started.
Hello, and thank you for joining BlackRock's 2025 Investor Day and for your continued interest and support. This is a very, very proud moment for Larry and I and the entire BlackRock team that will be presenting today. Since our last Investor Day in June of 2023, a lot has transpired in the world: ongoing conflicts, further polarization of political landscapes, some loosening of global monetary policies, sharp escalation in trade, protectionism, and potential rewiring of global trade. We saw record equity markets while also experiencing volatility and steep declines and rebounds. Over the same two years, clients have entrusted BlackRock with $900 billion of net inflows, translating to over $800 million in net new base fees. Everything we do is on behalf of our clients. We listen to them, we learn from them, and we put their needs first.
Since BlackRock's founding, everything we have accomplished reflects our commitments to understanding client needs and the outcomes that they are seeking. We've been willing to reimagine and reinvent ourselves to fulfill the client's needs of the future. 2024 was one of the most transformative years in our history to date. It was a year marked by record results and client activity, and also a historic year when we made bold strategic moves to connect public and private markets through portfolio management and technology. We generated over $640 billion of client inflows and reached $20 billion of revenue in 2024. We found big ideas in products like IBIT, which now has $70 billion in AUM. Our global iShares AUM surpassed $4 trillion. We brought Aladdin to new locations like South Korea and the Middle East. We celebrated the 25th anniversary of BlackRock's IPO.
We welcome more than 2,000 new colleagues from GIP and Preqin, and we'll onboard another 780 from HPS following the close of the transaction. With the addition of Preqin, we significantly broadened Aladdin's reach, tripling the number of individual desktops we operate on, and we landed on another big idea alongside our GIP partners: the formation of the AI Infrastructure Partnership. These bold strategic moves are all a part of our ambitions for the year 2030. All of us at BlackRock have embraced this 2030 vision as our North Star. However, the long-held foundations that inform our strategy and help drive BlackRock's success remain unchanged. We are here to help more people invest to live better lives and retire with dignity. We are a local fiduciary that delivers global scale for our clients. We provide greater access by making investing easier and more affordable.
We provide our clients with more choices to meet their individual needs, and we constantly evolve and diversify our global platform to serve clients across their whole portfolio. As you listen to today's presentations, we hope you'll gain a deeper understanding of our ambitions, the opportunities in front of BlackRock, and the people who are leading us forward. We will highlight the power of our integrated public and private markets platform and how it enables us to deliver better outcomes for our clients today and in the future. In turn, this will lead to differentiated growth, unlocking earnings and multiple expansion for our shareholders. No matter what, we are not afraid to change the way we compete and operate to succeed. What you will hear today is more than a strategy. It's an all-hands exercise as we reimagine what is possible.
I am confident that the best of BlackRock is still ahead of us. With that, I want to turn it over to our CFO and Global Head of Corporate Strategy, Martin Small, to talk more about our strategy and our ambitions for 2030. Martin, over to you.
Thanks, Rob. Good morning, everyone. How are we feeling good today here?
We're feeling good.
Great. Since 1988, BlackRock's embraced growth, change, and innovation, building a market-leading platform to deliver performance and scale for clients. Our successful track record of shaping and navigating change while expanding market leadership is built on guiding convictions that have been consistent through time. They're the foundations of our strategy. We believe in the long-term growth of the capital markets. We give access. We connect our clients, investors, corporates, the public sector. We connect them to the power of the capital markets. This connection has this positive flywheel effect of creating global growth, more shared prosperity, well-being, more investors for tomorrow, more future clients of the firm. We're a fiduciary business. We serve only clients. We give our clients undivided loyalty. We deliver them excellent performance across whole portfolios and products. Excellence in performance means excellence in investment performance, excellence in risk management, operations, and client service.
We look to create scale everywhere and in everything we do. We create scale through network economies, through our One BlackRock platform that's built on trusted, long-term client relationships and technology. We share the benefits of scale with our clients, providing better access to everything from new markets to data insights, from proprietary origination to lower trading costs. Our scale also benefits BlackRock shareholders. We've expanded operating margin by 170 basis points since we introduced our financial framework in 2022. BlackRock's value creation formula combines strong organic growth and operating leverage with recurring revenues positively linked to the long-term growth of the capital markets. It's a proven formula with a track record of delivering compelling value for clients and shareholders. Our strategy is rooted in client needs. Our $11.6 trillion of assets under management are measures of trust that clients have placed with BlackRock.
We've achieved our organic growth targets with 5% organic asset and base fee growth on average over the last five years. We've delivered above-target organic growth even in less supportive markets, such as the first quarter of this year. Following our clients, we're investing to build our platform around higher multiple, less market-sensitive products and services, private markets, technology, ETFs, and whole portfolio solutions. This should drive long-term relationships with higher and more durable organic growth. Consistent with this ambition, we're raising the bar, targeting 5% or higher organic base fee growth alongside 45% or higher operating margin through the market cycle. Private markets and technology comprised under a fifth of our total revenue at the end of 2024. They accelerate to approximately 20% upon the close of the HPS transaction.
We see our evolving mix taking us to 30% or more of BlackRock's revenue from private markets and technology businesses. We've already taken significant steps towards this goal with our inorganic moves in the last 18 months. We aim to drive the balance of this revenue through successful integrations and execution on synergies. The ambition of our BlackRock in 2030 strategy is to deliver more than $35 billion in total revenue and to double both our operating income and market cap. This ambition all assumes a flat market environment, and it's built on premium organic growth and base fees, technology ACV, and on investment performance. Even with modestly positive markets, just 3%-5%, we'd expect revenues and operating income to be meaningfully higher.
We've built BlackRock around structural growth, meaning the products and services that benefit from fundamental advancements, the durable long-term changes in how clients are using BlackRock as a platform, a scale enabler to manage and grow their businesses. We're executing to expand share in all these structural growers. We're top five in private credit and SMAs, top three in each of infrastructure, cash, and outsourcing, and we're number one in both ETFs and our Aladdin technology platform. We see our existing $11.6 trillion units of trust as among the best opportunities to grow. Over 90% of the top 100 asset owners work with BlackRock, and asset owners are looking to deepen their partnerships with fewer firms, aiming for more holistic strategic relationships. They require breadth of capabilities across asset classes and styles, global access and expertise, and excellence in public and private markets.
Leading asset owners want to work with platforms, not monoline product providers. BlackRock's platform presents exceptional breadth and global capabilities. Our institutional index business is built on long-standing relationships with the world's largest sovereign wealth funds, pensions, and other institutions. We have leading platforms across outsourcing, retirement, insurance, and wealth. There is over $3 trillion of client assets in these franchises trusted to BlackRock today. These clients all aim to increase their allocations and their insights into the private markets for diversification, income, and returns. We believe BlackRock's private markets capabilities are now positioned to deliver best-in-class outcomes for clients. We have leading capabilities in infrastructure, private credit, and private equity solutions. Our focus is delivering for clients. Imagine we are successful in helping existing insurance, wealth, and OCIO clients allocate even a modest portion, say 5% of their BlackRock relationships to private markets.
That represents a meaningful growth opportunity of over $150 billion in new private markets AUM and over $1 billion of estimated new base fees just within our walls. Beyond our existing business, we're building leading franchises in newer high-growth TAMs across the industry. We're building at least four new potential $500 million revenue businesses: private markets to insurance, private markets to wealth, digital assets, and active ETFs. We're building them from the ground up. All of these businesses barely existed at our 2023 Investor Day. As we power towards our 5%+ organic growth target, it's innovative and fast-scaling businesses like these that should help deliver higher and more consistent organic growth. In the nine months since closing the GIP combination, we've made major progress across the capital raise and return lifecycle.
We've expanded our offerings for clients and announced landmark transactions in digital infrastructure, utilities, and transport and logistics markets, and we'll mark another significant milestone towards our 2030 goals with the closing of the HPS transaction. We expect to close on July 1st. We're excited to bring a group of talented new colleagues from HPS to BlackRock and deliver a leading private credit platform to clients. With GIP and soon HPS, BlackRock's a top five private markets platform with leading cornerstones in the double-digit growth segments of infrastructure and private credit. We're aiming to raise $400 billion in private markets through 2030. It's powered by exceptional origination reach, strong investment performance, and depth of our client relationships. First, origination. As a large active and index investor for clients in public stock and bond markets globally, BlackRock's recognized as a long-term, highly aligned capital partner, not a short-term transactional counterparty.
This valuable position of long-term alignment with corporates and sovereigns puts BlackRock in a privileged position to see everything. It powers strong deal flow, the ability to customize income and growth solutions, and create long-term value for our clients and our partners. Second, wealth and insurance. Wealth managers and insurance companies across the globe are aiming to fuse public and private markets. That's insurers involving core fixed income general accounts into public and private credit. That's financial advisors transforming 60/40 model portfolios into something that looks more like 50/30/20. BlackRock's expert in deeply serving whole portfolio relationships. We're expert in delivering specialist capabilities across private markets and technology right alongside public fixed income, index ETFs, or systematic investing. This expertise should power fundraising synergies with GIP and HPS capabilities. Third, powering capital formation through new extended roadmaps and to serve clients.
Investment performance is the license to scale and grow successor vintages. We will build on the strong track records of the combined businesses to do just that. We also see big opportunities to expand our product roadmap based on client demand. Examples range from extending infrastructure investing across mega- cap in the middle market and from emerging markets to new energy and digital technologies. Our AI partnership with hyperscalers and asset owners is a good example of this product extension. In technology, we are expanding our opportunity set in the fast-flowing river of private markets data. Aladdin's technology has been the backbone of our own growth, and it is enabling other investment firms to support larger-scale growth and increased customization.
With Preqin, we're bringing that ethos to the private markets, supporting the growth of our clients and the growth of the industry itself, strengthening the connection between GPs and LPs and increasing private markets allocations. Think about the data, the benchmarks, the risk models, and analytics that transform public markets. They created a language. They made markets more accessible from developed to emerging, from stocks to bonds. They made the drivers of risk and return more understandable, which supports growth in the capital markets. Our aim is to do all of that in the far less mature data analytics and index business for private markets with Preqin. We've rooted our BlackRock strategy to 2030 in client needs, investment capabilities, technology, and scale. We're well positioned to deliver strong investment performance, win client trust, and deepen those relationships through a One BlackRock platform.
When we do well for our clients, we do well for our employees, and we do well for our shareholders. Our Investor Day presentations detail the building blocks to 2030: Aladdin, iShares, active investing, private markets, and expanding in new client segments all around the world. My partners will take you through the capabilities and actions that we believe will take us to over $35 billion in revenue by 2030 at north of 45% margins. With that, I'll turn it over to my friend and partner, Rob Goldstein, to build on how we're executing our platform strategy to power the BlackRock of 2030.
Thank you, Martin. Good morning, everyone. Thank you all for joining. I can't tell you how exciting it is to be here in front of you in this fantastic space to share the vision for BlackRock.
I'm Rob Goldstein, BlackRock's Chief Operating Officer, and over the next 15 minutes, I'm going to put more context around Rob's remarks and around Martin's remarks. I will share the vision for how we're powering scale for our clients' whole portfolio across both the public and the private markets. Scale is a tool to build solutions for clients. Scale is a tool for managing costs, and importantly, scale is a distinct competitive advantage for BlackRock, such that the sum of our capabilities allows clients to grow and expand across the ecosystem that we operate within. It's not that the big are getting bigger. It's that the best are getting bigger. Big is an output. It's becoming increasingly less about a client simply buying a fund and more about helping clients achieve specific objectives, from model portfolios to technology to co-investments. Clients are seeking more from their providers.
The best can meet this demand, but it's client behavior that's driving the consolidation. The top five asset managers have gone from 21% to 25% of industry AUM in five years, and we think that's only going to continue. Our clients want the scale benefits of doing more with fewer, and they're also organizing themselves around this trend. They think of their top asset managers as partners, not simply product providers. This means that One BlackRock is the key requirement. There are benefits to expanding with BlackRock. Clients should want to stay in and do more within that network. One BlackRock is more than a core cultural principle. It's a key commercial enabler. It's a commercial catalyst in this new environment. BlackRock has been designed, as Rob said, with one simple goal: to meet our clients' needs.
These needs have always centered on investment performance, and we view it as our mission to provide that via exceptional access, expertise, and service. That access starts with that whole portfolio mindset and client choice. Building portfolios is hard. We want to make it easy. Asset owners throughout the world have their own opinions on how to build their own unique portfolio. We want to enable them. We want to help them to simply combine our puzzle pieces, our investment products and strategies into solutions that solve unique client problems. That is how we deliver choice. Our expertise is built through the close to 23,000 employees we have in 30+ countries, 80+ offices who speak 100+ languages. Attracting and retaining the best talent in our industry globally is core to our ability to deliver. Connecting them together in an integrated firm as One BlackRock, that is the key ingredient.
This enables us to bring global insights and global investment strategies locally and bring local insights and strategies globally. From a service perspective, it is the foundation of One BlackRock. We are not an organization that operates in silos. Our greatest value proposition, our One BlackRock value proposition, is the benefits we create for clients by bringing together the various pieces of the puzzles of BlackRock to develop investment insights, to design unique client solutions, and to create scale across our platform, all while delivering excellent investment performance. Since the last Investor Day, we have been a little bit busy, in case you have not noticed, but importantly, so have our clients. Our client needs are continually changing. The markets are continually changing, and it is our job to stay ahead, to continuously reinvent BlackRock.
There are two primary axes that we want to ensure we highlight when we think about the past two years. First, we have been investing in the building blocks to serve clients across that whole portfolio. GIP, Preqin, HPS, those are great examples. Each of those decisions is a step function game changer. We have always set out to define a new standard for our industry and for our clients, but these acquisitions are absolutely core to that. At the same time, there's been a lot of other things also going on. We've implemented our digital asset strategy. LifePath Paycheck is live and helping hundreds of thousands, hundreds of thousands of U.S. workers invest for retirement. We've built an accounting capability within Aladdin, and we've been doing a tremendous amount with respect to AI, including launching Aladdin Copilot.
You could actually watch Jensen Huang at NVIDIA's conference in March of this year go online where he talks about and highlights Aladdin Copilot as a great case study of implemented AI. As personalized portfolios at scale have become more important to our clients, we've brought in overlay capabilities like SpiderRock and our SMA solutions through Aperio. Now, when you look at how our presence has evolved since we last convened, capital is also concentrating and growing. The big are getting bigger with regard to asset owners. The world has changed, and we've invested in our footprint accordingly, reflecting the increased importance of local presence in an increasingly complex world. If you look at a place like the U.A.E., at this point, we have 60 employees across a whole spectrum of functions. Why? Because that's what our clients are requiring.
We believe that the notion of being able to walk to your clients anywhere in the world will be a critical competitive advantage in a world where globalization is being rewired. We are on a continuous quest across four key themes: ensuring that clients benefit by growing within the BlackRock network. This is One BlackRock as a commercial principle: establishing ourselves across the ecosystem. Our capabilities add value well beyond asset owners and wealth managers. Building something once and monetizing it multiple ways, and importantly, continuously driving marginal costs down. All of this and the license to do everything that we do as a firm starts with excellence, serving our clients with excellence across investments, technology, operations, and across any solution that they may need. Now, I wanted to share a real-life case study of each of these four themes.
First, making sure that clients expand within the network. This is how they gain more and more benefits of working with BlackRock. I like to think of this as a value proposition that does not grow linearly. It grows exponentially. Here is an example of a relationship that started within the past five years. In fact, I distinctly remember it because it was Thanksgiving 2020 that the initial opportunity really started to come together. It was literally as I was picking up my turkey, so I really remember it. Think of this client as a roughly $100 billion general account for a global insurance company. Their portfolio, as you would expect, includes public fixed income, public equity, cash, private equity, private credit. The first step in the relationship was BlackRock delivering a holistic strategic asset allocation. We modeled their whole portfolio on Aladdin.
We analyzed the risk, and we provided a series of optimizations. The relationship expanded to BlackRock being the core fixed income manager. We were entrusted with the majority of their fixed income assets, tens of billions of dollars. Next, we began working with them on private credit. From there, we started implementing Aladdin. We also started to provide investment accounting and operational outsourcing. Finally, we began managing their private equity portfolio, helping them understand how they could optimize and grow their portfolio to achieve better investment outcomes. What does this make us? This makes us a strategic partner across the whole portfolio. I wanted to show this example specifically because a lot of times when we talk about the whole portfolio, people immediately default to OCIO, Outsourced Chief Investment Officer, when the client mandate effectively starts with outsourcing the whole portfolio.
Whole portfolio also means starting, then expanding, then expanding more within the BlackRock network. It's the story that I just told. It's about a leveraged value proposition where the more you do with BlackRock, the greater the scale benefits are that you can achieve. We now manage over 2/3 of this client's portfolio, and we know there's room to grow even further. That is powering scale for the whole portfolio. Now let's talk about ecosystems, and I'm going to use digital assets as an example, but it could have been bond ETFs. It could have been model portfolios. It could have been ETFs in the Kingdom of Saudi Arabia. At its core, our digital asset strategy is about how do we connect, how do we bridge the traditional capital markets with this developing digital assets ecosystem in a bidirectional way.
There are four elements to BlackRock's digital asset strategy. The first is connecting networks. Aladdin is among the leading networks in the traditional capital markets. Coinbase, which is actually right across there, is among the leading networks in the digital assets ecosystem. Connecting these networks, linking Aladdin with Coinbase's platform, positions Aladdin at the center of this continually evolving whole portfolio, publics, privates, and crypto. The second is stablecoins. We recognize the important role that stablecoins would play in digital assets and ultimately in the capital markets. This led to our relationship with Circle. We are the preferred asset manager for the underlying reserves of Circle's USDC stablecoin. Today we manage over $50 billion for that, and we see tremendous opportunity for growth there. The third is access.
Our ambition continues to be to provide institutional quality access to Bitcoin, Ethereum, and ultimately other digital assets with the convenience and efficiency of the ETP wrapper. IBIT, our Bitcoin ETP, we think of as the bridge enabling Bitcoin exposure through the traditional old boring capital markets with BlackRock's quality. IBIT has been anything but boring. It is the fastest growing ETP in history to get to $30 billion, $40 billion, $50 billion, $60 billion, and this week $70 billion. Today, IBIT is the only one of the world's largest 25 ETPs to be less than 12 years old. It is a year and a half old. Finally, we are focused on tokenized funds. We think over the long term, the technology of tokenizing funds can be very transformational, but right now it is still very early days.
We're focused in particular on our tokenized liquidity fund, BUIDL, which is the largest tokenized fund in the industry at over $3 billion. Imagine a world where iShares are tokenized and can actually sit and live within digital wallets. Overall, our digital asset solutions are at a premium offering. We've built a quarter of a billion dollar revenue business through this strategy in a reasonably short time. Importantly, BUIDL, IBIT, and USDC, they all have something in common. All of them are effectively utilities that have become cornerstones of the digital assets ecosystem. Each of them has brought and will continue to bring new clients to BlackRock, to that BlackRock network outside of traditional finance. We also see great opportunity for them to ultimately become utilities within the traditional capital markets ecosystem. This is the story of BlackRock bridging ecosystems, the capital markets, and digital assets.
Shifting gears, the next case study. We wanted to provide some examples of build once and monetize in multiple ways. To me, this is the ultimate definition of scale. First, Alpha Signals. Our systematic investing business has over 1,000 individual Alpha Signals. What we've been able to do is combine and optimize subsets of these relevant signals to effectively, quickly enable and launch local investment products in places like India, Saudi Arabia, and Japan. It enables us to instantly scale in local markets by bringing our world-class capabilities. Second, our global trading and markets capabilities. We are internalizing roughly a quarter of our equity trades per year. To put that in perspective, that quarter is roughly the same size as the DAX in terms of notional traded volume last year. Through liquidity offset like this, we're saving clients approximately $600 million a year in transaction costs.
Finally, for something that is still in the lab, we've built an agentic AI research platform. We call it Asimov, and it's used today across our fundamental equity business. This is a virtual investment analyst. While everyone else is sleeping at night, we have these virtual AI agents. They're scanning research notes, company filings, emails to generate portfolio insights. I expect that by the next BlackRock Investor Day, Asimov is being used all over the firm, helping scale our people to drive better investment outcomes. Our final case study is about operational excellence. This is effectively the starting point for everything we do at BlackRock. What's changed since our last Investor Day? A lot. We've had a busy couple of years. We've been awarded approximately $1 trillion in assets by clients. These are units of trust that we need to re-earn every day.
We've onboarded 3,000 new employees, but over 2,000 of these were through acquisition. We've only grown our employee base by less than 5% total organically since 2023. At the same time, our as-adjusted operating margin has increased by almost 300 basis points. Martin just walked you through the 2030 plan. There is a lot of financial metrics as part of that vision in terms of growth and aspiration. Another lens for the 2030 plan is the lens of operating scale that is required. We look at this bottoms up based on what our clients are requiring of us, what will BlackRock require in terms of scale as we look to 2030. We are actually building our technology in anticipation of these new scale vectors. Our objective is that the marginal cost of this growth, it be as low as possible.
Our objective is, and will continue to be, as we enhance, as we invest in our technology to meet these requirements, we'll provide these capabilities to the Aladdin community so they do even more with us. Importantly, it'll enable us to sell more Aladdins. Finally, I want to close with what you need to remember about BlackRock. One BlackRock is a commercial model just as much as it is a cultural principle. This is scale in action. First, it's about excellence in everything that we do for our clients across investments, services, technology, you name it. Second, we want to be our clients' first call for all things investments. Third, we want to create the surround sound effect to working with BlackRock. Our aspiration is that clients gain tremendous benefits by growing and expanding within the BlackRock network.
Lastly, we are on a long-term journey for Aladdin to be the language of portfolios and for eFront, now Preqin, to be the language of the private markets. One BlackRock is and has always been that key requirement. As we look ahead to the rest of the day, you'll hear more from my colleagues about the concepts of clients staying and expanding within the network, the power of doing more with BlackRock. Our next session is actually on technology, and there are no two better leaders to share our strategy than my partners and friends, Tarek Chouman and Sudhir Nair. Thank you.
Great. Thank you, Rob. Good morning, everyone. My name is Sudhir Nair, and I'm the Global Head of Aladdin here at BlackRock. As you've heard from my colleagues, our Aladdin technology is and always has been at the center of the firm.
In fact, we often say BlackRock is Aladdin and Aladdin is BlackRock. Together, we grow stronger, more innovative, and better positioned to serve our clients. The fact that BlackRock is both the largest user of Aladdin, while at the same time providing its capabilities through our Aladdin business, allows us to stay uniquely attuned to the changes in the marketplace and our adapting client needs. This user-provider model in many ways continues to be our special sauce. Through one lens, Aladdin is an investment system that helps people manage portfolios from risk to trading to operations to accounting. Through a different lens, Aladdin is more than just a technology. It's actually an important part of our identity. It's the operating backbone, as you've heard, that helps BlackRock achieve the unparalleled breadth and scale that Rob and Martin spoke about. It's a pillar of our culture.
It's an ethos of disruption and challenging the status quo. Aladdin's spirit is all about this relentless pursuit of process improvement, better, faster, cheaper. It's part of the fuel that powers this perpetual reinvention machine while at the same time helping us drive down marginal cost. Lastly, it's a high-growth global SaaS technology business that's an increasingly important engine within BlackRock's overall growth strategy. Over the next 20 minutes or so, Tarek and I are going to double-click into this third pillar with a focus on Aladdin as a commercial business, where we are, where we're headed, and why we're so excited for what the future holds. Okay, let me start with a little bit of a snapshot of the business today. In 2024, BlackRock generated technology services revenues of $1.6 billion.
Annual contract value, or ACV, grew 14% year- over- year in Q1 2025, and we remain committed to our guidance of long-term organic ACV growth rates in the low to mid-teens. What began as a risk management system supporting fixed income at BlackRock has grown to cover the end-to-end investment lifecycle across an increasingly interconnected financial services landscape. Our goal is to have Aladdin be the common language across all portfolios, making it easier and more efficient for investors everywhere to serve their clients and help them achieve their financial goals.
Whether you're an asset manager onboarding a new OCIO mandate or a pension fund managing against a liability target, or a financial advisor building a new investment proposal for a high-net-worth client, we believe there's an opportunity for Aladdin to help make your process better by creating an even tighter connection between your teams, your partners, and ultimately your clients. Now with Preqin, our most recent acquisition, which closed in March, we're expanding our business model. We're shifting one lane over from our core into the high-growth area of private markets data. Preqin brings over 4,000 clients, new segments for Aladdin, including law firms, consultants, and tax advisors on and across over an additional 200,000 user desktops. Preqin creates several new exciting growth opportunities, and Tarek's going to talk about those in more detail later in the presentation.
Aladdin's revenue is not only growing, but like many enterprise technology businesses, is also long-term and durable. Our technology revenue is 98% recurring, contracted over multi-year periods. We've built long-term client relationships by focusing on client satisfaction and delivery, with client retention averaging 97% over the last three years. The recipe for serving our clients is actually quite simple. First, we focus on innovation, continually investing in the technology to anticipate the needs of our users. Of the roughly 7,500 BlackRock employees who support Aladdin, nearly 5,000 of them are technologists, data professionals, and engineers. Second, we're maniacal about execution. We've never thought of what we do as simply implementing a new technology at our clients. Instead, we're partnering with them, helping them on their transformation journey to achieve new heights and new levels of scale.
This is both as fun and as hard as it sounds, but we've built a world-class capability to manage these large-scale tech transformations. To us, it's really important that you start the process to transform, but it's even more important that you successfully finish. Lastly, we've invested in building a community. By offering Aladdin as a service, true SaaS across so many segments, geographies, and users, including BlackRock, it allows us to bring people together to tap into their collective intelligence, all of the feedback, all of the ideas so we can create a shared view of where Aladdin needs to go. This allows us to make Aladdin better, innovate faster, and create deeper partnerships with our clients. These guiding principles continue to serve us well.
In fact, if you look at the nearly 5,000 global software businesses today, and then you filter for those with over $1.5 billion of annual revenue growing at 10% or greater, Aladdin ranks in the top 1.5%. From this strong position of trust with our clients, we see even more opportunity for growth. The macro trends impacting our industry are a tailwind for Aladdin. Individually, each of these is a fast-moving river, but collectively, they're a tidal wave of change. Change that is prompting each and every one of the clients that we speak to to ask a very simple question: Is the operating model and the tech stack that I'm using today going to support my future growth? Yes, everybody wants to increase their portfolio allocations to private markets, but in order to do so, they need access to better data, more transparency, and industry-standard workflows.
Wealth managers want to offer their clients even more personalized portfolios that go beyond the traditional 60/40 with a collection of stocks, bonds, model portfolios, ETFs, SMAs, insurance wrappers, and now private markets. They need new tools, better analytics, and technology to build, manage, and distribute this new customized portfolio at scale. Of course, the world is excited about AI, the potential that it brings to revolutionize the investment process. As firms work with these new technologies, LLMs, and other generative models, they're quickly learning that their success will be less about the models that they choose and more about their own ability to collect, curate, and maintain what is a rapidly expanding set of data.
With all of this complexity increasing across the board, new asset classes, new technologies, new ways of doing business, clients are looking for ways to scale and unlock efficiency, and we believe that technology is that unlock. Against all of this change, we're going to capture the opportunity by leaning into Aladdin's growth and innovation flywheel. We're going to focus on three things. One, by expanding the suite of Aladdin's capabilities, helping our clients to do more, sorry, to solve more. By opening the platform, attracting new partners from across the industry, allowing them to connect more. Finally, by continuing to drive more efficiencies, changing the way work is done, including by leveraging AI, allowing our clients to do more. When it comes to expanding the suite of capabilities, our roadmap has actually never been more robust. The more we do, the more there is to do.
The next chapter of the whole portfolio will be all about how we bring it together. From more capabilities that integrate public and private, including eFront and now Preqin, to building new tools to support wealth management's transition from advisory to discretionary, to completing the build-out of Aladdin's native accounting capabilities, to pioneering innovations across digital assets and tokenization, to enabling new ways of managing data in an AI-first world, including continuing to open Aladdin for more integrations and interoperability. We've never been busier, but also more excited about all of the ways that we're expanding Aladdin's footprint and ultimately its value proposition for our clients. This concept of interoperability is actually an important part of the strategy. Clients, they want the best of both worlds. They want to benefit from Aladdin's many capabilities, but they also want choice.
They want Aladdin to make it easier for them to integrate with the preferred partners that they want to work with. By opening Aladdin, having a world-class suite of APIs and connection points for third parties, we continue to build out Aladdin as a platform. I mentioned the thousands of BlackRock engineers that we have working on Aladdin, but if you look today, there's actually many more non-BlackRock engineers who are working on top of and alongside Aladdin. Clients integrate their proprietary tools with Aladdin's data and underlying technology services, truly making Aladdin a perfect fit within their organization and an extension of their technology.
We've expanded our partner integrations with third-party providers supporting every step of the investment process, from client onboarding and account setup to trading with over 15 broker dealers, market makers, and liquidity providers, to custody and settlement working directly with the leading asset servicers, as well as a collaboration with various technology partners, including Microsoft, Snowflake, NVIDIA, and ServiceNow. We want to make it easy for clients to use Aladdin as the common language to make their operations smoother and more efficient from front to middle to back. Okay, before I hand it over to Tarek, let me spend a minute on what we're doing with AI. It's worth noting, as you've heard, BlackRock is not new to AI, but with the explosion of possibility provided and unlocked through generative AI, we're building a whole suite of new capabilities across a variety of areas.
We're looking to embed AI into every aspect of Aladdin, which allows us to really reimagine the way portfolios are being managed today, but also how our users will spend their time. Today, if you look across BlackRock, we're starting to think about generative and implement generative AI agents working alongside portfolio managers, as Rob mentioned, helping with investment research and portfolio commentary, streamlining and collapsing operational tasks such as investment compliance, rule coding, and custody reconciliation, supporting our engineers as they write the next million lines of Aladdin's code, allowing them to work more efficiently, helping our relationship managers with every aspect of managing the client relationship from the most basic frontline service ticket to a nudge of a potential sales opportunity to a rep out in the field, to authoring the first draft of a global account plan that brings together this One BlackRock best of our capabilities.
The potential for AI is becoming increasingly clear, and with that, our level of enthusiasm, investment, and commitment is growing accordingly. Let me now hand it over to Tarek, who's going to bring all of this to life with a series of examples.
Thank you, Sudhir, and hello, everyone. I am Tarek Chouman, the Global Head of the Aladdin Client Business. You've heard from Sudhir today about our multiple growth areas, but we are also seeing significant opportunities to expand. Our journey in the public markets started with building tech to answer a foundational client question: What do I own today? Over time, that evolved into a more forward-looking question, which is, now that I know what I own today, how can I decide what to own tomorrow? This shift has shaped how we think about clients' needs for transparency, insight, and support in decision-making across the platform.
We then saw our client portfolios changing and increasingly include private market assets. From there, we expanded our capabilities into technology that supports these assets. Initially, we accomplished this via our acquisition of eFront, and we continued to build upon the offering. Now, with the acquisition of Preqin, we are further expanding our total addressable market into an entirely new segment, which is private markets data. The TAM for data includes opportunities to expand through workflows as well as through data distribution partnerships. Overall, the core factors influencing and driving our growth are largely tied to what you have just heard from Sudhir: whole portfolio, data, opening our platform, accounting, and wealth are all key to our success. Today, we have captured roughly 10% of the +$20 billion of our addressable market. Our ability to add to our platform solutions is fundamental to expanding our TAM.
This allows us to solve more and more client needs. As you can see, we started our private markets journey with the acquisition of eFront. This enabled us to deliver a technology solution that services private investments. We then integrated it into our public markets technology to build a blended investment book of record. This established a unified way of managing what we call the whole portfolio. Next, we realized that clients need better access to trusted data. With our acquisition of Preqin, we added private markets data, strengthening our pre-investment capabilities. Further, we also needed to enhance our platform with specialized asset classes with GIP and soon to be HPS. As part of BlackRock, we are enhancing Aladdin to support more nuanced asset types like infrastructure as well as private debt.
Throughout every step, we have been in deep conversations with our clients to not only understand their needs, but to anticipate them. They are helping us to improve, and in turn, they are doing more with us as a result. Across the technology landscape, most providers focus on individual point solutions. Aladdin's strategy differentiates itself by integrating workflow and data to deliver more seamless client experience. Let me show you how we are growing our business and expanding our footprint. First, and as I just mentioned, as more clients join Aladdin, the entire client community benefits from the asset class nuances we are building. Our whole portfolio offering continues to expand to cover more and more asset classes with more and more sophisticated analytics that are fundamental for all investment activities.
Second, with data at our foundation, we can provide new clients with a wide range of possibilities for how they choose to interact with Aladdin. Our API-driven workflows allow clients to connect to Aladdin in a flexible way that works for their operating model. Third, we can configure the platform in ways that optimize for many different client needs. As Sudhir just mentioned, we have a wide variety of client segments. Within these segments, there are many flavors. Openness, flexibility, and connectivity of our platform are key to our ability to integrate into the investment lifecycle. Finally, we are entering into new geographies. This includes new countries in the Middle East, new countries in APAC, South Korea, Taiwan, Philippines, etc. As we expand into those new regions, we are operating locally with client nuance and regional complexity integrated into our approach.
To bring this to life, I'm going to take you through a case study that touches on all four of these points with the insurance client segment. In the grand scheme of all client types that Aladdin services, you might think that insurance is a dormant or slowly moving market segment. Not at all. I would like to show you how within this segment, Aladdin needs to adapt and integrate differently to serve evolving insurance client needs. Let me share with you some trends that are impacting the insurance industry. Unsurprisingly, we are seeing a rise in allocations to private markets within insurers' portfolios. We are also seeing the emergence of private equity-backed insurers, which is a new operating model shift that has technology implications. What used to be distinct lines between insurance and asset management is becoming more and more blurred over time.
To keep up with growing end investor demand, we are seeing insurers develop new and innovative reinsurance investment vehicles, which provide a new set of complexities for technology. All of this exists in the macro landscape of evolving regulatory framework that vary regionally, despite these insurers often operating on a global scale. In light of these trends, we are seeing insurance clients fall into three different client profiles. The first one is what we call the whole business outsourcing. These clients are looking for a mega partner. They are often global organizations that have multi-asset strategies. In some cases, BlackRock is the asset manager. Aladdin serves as the technology backbone, and operations have been outsourced to Aladdin, including accounting. We have another profile of insurance clients that are focused on business expansion and tech transformation.
These clients often come to us to partner in building solutions as they look to expand and grow rapidly. We have enhanced Aladdin over time with insurance-specific capabilities like SAA, strategic asset allocation, RBC, risk-based capital to help scale for these clients' bespoke needs. Lastly, the third profile ties into the trend of private equity entering the insurance domain, which is increasingly reshaping the industry. As PE firms continue to enter the space through the acquisition of insurers, we observe the rise of public debt as well as private debt. This creates opportunities for Aladdin to play a role as the technology platform to manage their whole portfolio. As you can see, we have built end-to-end solutions for our insurance clients by responding to their distinct needs, industry trends, and evolving challenges.
These capabilities, in turn, benefit the whole entire community today, from the front office to the back office, including both standardized and customizable workflows, plus accounting, plus data, and this is the combination that makes Aladdin the solution of choice for the insurance segment. I will leave you with these four things. Number one, we have a resilient technology business with strong recurring revenue. Number two, we have continued the trend of both growing within and expanding our addressable market, all under the overarching purpose of solving more and more client needs. Number three, Aladdin has never been more well-positioned to combine both public and private markets across data, across workflows, to provide a unified experience for all clients. Number four, this is all underpinned by our commitment to achieve low to mid-teen ACV growth over the long term. Thank you, and now I will pass it to Stephen Cohen.
Okay, thank you, Tarek. Good morning, everyone. I'm Stephen Cohen. I'm our Chief Product Officer, and I lead our global iShares business. You have heard throughout this morning how BlackRock's platform serving clients across the whole portfolio, delivering scale through technology, will power our business towards 2030. iShares is going to lead that charge. The ETF industry is evolving, expanding into new asset classes, investment styles, and regions, and at iShares, we are uniquely positioned to drive the next wave of growth and adoption. With over $4 trillion in assets and generating $6.7 billion in annual revenue, iShares is an all-weather platform built to deliver for clients in every single market environment.
Together with Jessica Tan and Jane Sloan, US and EMEA businesses, we're going to share why we're so energized about what's next and the three big levers that will unlock our next chapter: building new product categories, creating millions of new iShares users, and expanding our global reach. Now, the world of investing is changing. It is shifting towards greater transparency, efficiency, and choice. People increasingly demand the same convenience in investing that they experience in all other aspects of their lives. Some of these traditional silos are dissolving: convergence of index and active, convergence of public and private, convergence across product wrappers. As Rob said earlier on, scale is increasingly critical to all aspects of this business: the ability to leverage technology, to leverage AI that can power investment platforms, power innovation, and ultimately drive great performance.
ETFs are increasingly at the heart of all of these trends. Now, to put the ETF industry in some context, I'll draw a parallel to another industry transformation we've been through, which is e-commerce. If you think back to 2010, you didn't expect to do your grocery shopping on your phone. Technology changed habits, and e-commerce went from 6% of US retail sales to over 18% today. It was powered by this relentless innovation touching every product category. Today, ETFs are 6% of global capital markets. We are at our tipping point, and we believe the ETF industry will nearly double, from $15 trillion to $27 trillion in the next five years, and that's before accounting for any sort of market beta. It's not just about more ETFs. It's about a fundamental shift in how the world invests. What's driving this? Two things.
One, indexing is still early. Penetration remains low in regions like Europe, asset classes like fixed income. We're not just indexing more. We're continually rethinking what index can be for markets as they change. If you go back to 2000, the entire U.S. stock market was worth $15 trillion. Today, the top seven companies are worth around that much. Investors are going to always need new tools to navigate this ever-changing landscape that we live in. Two, ETFs have moved beyond indexing. Newer segments are just at the beginning of their journey. These new use cases for the ETF wrapper have emerged like Active ETFs and digital assets, which we're going to talk about. It is now that adoption is really accelerating, driven by new technology, driven by evolving regulation. This is a very special year.
There's a second 25th anniversary, and that is the 25th anniversary of the iShares brand. In 2000, with just 40 ETFs, iShares set out on a very bold mission to revolutionize investing. Over those 25 years, we have done just that. iShares has led the way in expanding choice access for investors around the world. We set the standards, we shaped the industry, and we continuously evolved our offering. We brought U.S. investors access to international markets, we introduced ETFs to Europe, and we launched the world's first bond ETF. Today, iShares serves clients in over 25 countries, offering the broadest range of ETFs in the market, more than 1,600 in total. That includes over 400 iShares, each with over $1 billion in assets. Our billionaire ETFs, as we call them, more than triple our next closest competitor.
Our reach across asset classes, across regions, across client segments is what sets the iShares platform apart. Core ETFs remain a foundational part of our growth story, but a new wave of opportunity and revenue is coming from higher growth, more premium segments, fixed income, active strategies, digital assets. In fact, last year, active and digital assets accounted for almost half of our net new base fees. Together, this positions iShares as a broader, more diversified platform than ever before, one that's built to deliver 6%+ organic growth through the cycle. Now, I know pricing dynamics are top of mind for many of you. As you've heard from Martin and Caroline throughout the year, we have a clear overall pricing approach where we consider investing up to 1.5%-2.5% of iShares revenues annually into growth opportunities.
In fact, as our platform has expanded into some of these higher value proposition categories where we are uniquely positioned, our actual investment in pricing has been meaningfully below that range in recent years, and that includes the current year during which we've made a few targeted investments. The power of BlackRock's platform is the bedrock of iShares leadership. It's becoming even more critical as we expand the ETF industry into these new areas. Wrapping new innovative strategies in iShares while maintaining our gold quality standard is absolutely essential, and it requires the best technology, and that is our ETF engine. It is the secret sauce to delivering performance, delivering innovation, and maintaining product integrity at scale. For clients, it means better liquidity, closer tracking, tighter spreads, ultimately a lower total cost of ownership.
In Europe and the U.S., iShares ETFs trade with bid-offer spreads nearly two times tighter than the industry average. With the most liquid options offering in the market, iShares is the go-to ETF provider for banks, for hedge funds, and other large-scale investors. Let's look to 2030. The next era of iShares is going to be powered by three strategic levers. The first will be building new categories. We have done this repeatedly throughout iShares history, bringing differentiated capabilities to investors in a wrapper and a brand that they trust. We're continuing to do this in indexing, and now we're doing it in some of these newer investing areas, as you just heard, like digital assets. Jane's going to talk about how we're building the ETF market very much in its early stages in Europe.
There is beyond indexing, where we're combining our leading active investment teams with the power and the brand of iShares. You're going to hear more from Jessica and later from Rich, Rick, and Raffaele about the role that Active ETFs play, not just empowering iShares, but also empowering our liquid active platform's future. There is the recent acquisition of Preqin, which we're super excited about. It's going to bring even more ingredients into iShares. The second lever is expanding client adoption across things like models, digital wealth, and institutions. Demand for iShares from portfolio builders will continue to accelerate, with model portfolios going global as wealth distribution evolves, catalyzed by this business model change and this regulatory change.
The shift to digital in wealth management is a huge change, and it's going to see 10s of millions of people become first-time investors around the world through iShares, including widespread adoption of iShares ETF savings plans. Institutions will continue to look for more efficient ways, more efficient tools to navigate these changing markets, especially in areas like fixed income, where already 9/ 10 of the largest insurers and asset managers use iShares fixed income ETFs. We see regulatory unlocks unlocking even more and expanding the market even more over time. There is iShares to the world, bringing our two global platforms in the U.S. and Europe to clients everywhere: Asia, Latin America, the Middle East, exporting some of our best franchises around the world and expanding our local ETF ranges. Let's bring this strategy to life.
Before I hand over to Jess and Jane to talk a bit more about the opportunities in the U.S. and Europe, I thought I'd start with one of the most powerful global growth engines in our business today, fixed income. iShares launched the first fixed income ETF back in 2002. What began as a bold experiment is now a $2.7 trillion segment, with iShares managing 40% of the market. Fixed income ETFs have gone from product that we had to defend from skeptics over and over again to having proven their worth over and over again with clients through multiple periods of market volatility over the last few years. Just in April, record iShares trading volumes during that historic bond market moves once again proved the value of fixed income ETFs in helping investors manage risk and stay invested. We haven't just built products.
We've actually reshaped the underlying market itself. Through sustained investment in the ETF ecosystem, iShares has brought more price discovery, more transparency, and greater connectivity to fixed income. Today, fixed income ETFs are used by pretty much every type of investor, and adoption is accelerating: 20% organic growth last year among the fastest of any asset class or any vehicle. Yet, they still represent just 2% of the underlying $140 trillion global bond market. That's the opportunity ahead of us. We are ETFing more and more of that bond market, whether it's through indexing, whether it's through active strategies, from iBonds to CLOs to cash management to outcome-oriented exposures. We're unlocking new use cases. We're reaching new investors. The industry is on track to reach the $6 trillion target that we set by 2030.
One of the biggest growth drivers towards that target will be the shift from individual bonds to ETFs. That is where iBonds come in. Whether it is an attractive alternative to cash, whether it is constructing bond ladders or gaining targeted yield curve exposure for liability matching, clients of all types are rapidly adopting iBonds. We believe that iBonds will become a core building block in the future of fixed income portfolios. There are $119 trillion held in individual bonds today. There are trillions of dollars of savings in cash. The potential is absolutely enormous, and iShares is leading the way. Let us now turn to the U.S. and Jessica.
Thanks, Steve. Hi, everyone. My name is Jessica Tan, and I oversee our U.S. iShares business. As Steve said, the ETF industry is evolving fast, and U.S. iShares is positioned to lead in that change.
Today, I'll focus on how we're building new categories and reaching new clients. As you've just heard, the ETF market has a lot of runway. Steve mentioned ETFs are 6% of the global capital markets. In the U.S., that number is 10%. If ETFs are to capital markets what e-commerce was to retail, then the U.S. ETF industry is just in the year 2019, so past the tipping point, but with plenty of growth ahead. In 2024, the U.S. ETF industry saw a record year. In just the last five years, assets doubled to over $11 trillion, flows tripled to over $1 trillion, and net new revenue quadrupled to nearly $2 billion. We expect that acceleration to continue across both index and active strategies, with more of the revenue coming from newer, fast-growing segments. iShares is at the forefront of the changing U.S. industry.
We offer clients the most comprehensive suite across the board, from core portfolio offerings to precise exposures like international or commodities to newer segments like Active ETFs and digital assets. Our scale and brand allow us to be a leader across all of these segments, and our capital markets expertise allows us to innovate alongside clients to best meet their investment needs and deliver the quality that they have come to expect from iShares. U.S. iShares assets surpassed $3 trillion in 2024. A quick reminder of how we got here. Our initial climb to $1 trillion took 17 years, and this was largely fueled by traditional index strategies spanning core equities and fixed income. Just four years later, we doubled that, driven by investors seeking core plus exposures.
Last year, we surpassed $3 trillion, powered by our expansion to new strategies, including more granular fixed income exposure, digital assets, and active. We do not measure ourselves solely by asset growth. As you can see on the right-hand side, over the last five years, our NNBF nearly tripled to over $250 million in 2024. That is 40% more than the next competitor. Very notably, that growth has been powered by all major product segments. Our diversified platform now has over 190 U.S. iShares billionaire funds spanning every major category. This gives our clients better solutions through all market cycles, and it makes iShares a true all-weather platform. Now, our ambition is to continue to build on this leadership and deliver 5%+ organic revenue growth through the cycle with upside in favorable markets.
Now, Steve talked about how we're unlocking growth by building new products and product categories and establishing new iShares clients. He spoke about two of our key areas: core fixed income, I'm sorry, core equity and fixed income. Now, I'll spotlight two of our newer categories: digital assets and Active ETFs, which we expect to drive outsized growth through 2030. Now, when it comes to building new product categories, there's no better example than the launch of our spot Bitcoin ETP, IBIT. Despite several competitors entering the market at once, IBIT was the early winner due to the strength of the iShares brand and platform. As Rob mentioned earlier, today, IBIT is the number one spot Bitcoin ETP in the market, with nearly $70 billion in AUM and 4x the flows at the next largest fund. It hit those levels in record time. The bigger story?
Of IBIT's nearly 1 million investors, 75% were new to iShares. Of those new investors, 27%, or 185,000 investors, now hold other iShares ETFs. That is not just category growth; that is platform expansion. We are not just attracting new investors to IBIT; we are also helping them discover the full iShares toolkit and opening the door to this emerging client segment. IBIT is just one example where we are leading in the digital asset space. Whether it is Ethereum ETPs or tokenized treasury funds, we are innovating high-quality, trusted solutions. Now, while the initial expansion of this category was driven by individual investors, we see continued demand as more institutional investors turn to digital assets to diversify risk over the long term and build resilient portfolios. Now, turning to another example of a new build: Active ETFs. Active ETFs have seen tremendous growth in adoption in the last five years.
In 2019, Active ETFs made up 2% of the market. Today, they make up 9%, and we do not anticipate this trend to slow down. As Martin mentioned earlier, we have aspirations for our iShares active suite to become a $500 million business by 2030. Over the last three years, we have launched 40 Active ETFs spanning core portfolio categories as well as innovative strategies, including our first liquid alternatives ETF, money markets ETFs, and a suite of outcome ETFs. We are delivering top performance. In fact, over 70% of our Active ETFs have Morningstar bronze, silver, or gold ratings. Our differentiator is combining BlackRock's best active management IP with iShares' quality and convenience with our distribution reach across both wealth and institutional clients. I will walk through two examples: our equity factor rotation ETF, DYNF, and our flexible income ETF, BINC.
Now, these tickers were two of the top five Active ETFs by flows in 2024. DYNF, which has grown to $18 billion in assets, up from even the $15 billion at quarter end, as you see on the slide, was the top Active ETF by flows across the industry last year. Why are clients choosing DYNF? The IP run by our systematic team leverages over 1,000 investment signals and enables investors to dynamically capture unique alpha opportunities. Not to mention, it has delivered top decile performance. Now, we're using that same IP that powers DYNF to expand our Active ETF suite, for example, through our thematic rotation ETF, THRO. You'll hear more about our systematic suite later on from Raffaele Savi. As Steve mentioned, we're also increasingly able to ETF more parts of the bond market. BINC, at $9 billion in assets, debuted two years ago.
Now, BINC builds on decades of strong results from flagship BlackRock strategies and has delivered attractive levels of yield with less volatility than the core fixed income market. Because of this trust, we've seen early success for model portfolio builders and wealth platforms onboarding BINC even ahead of generating a three-year track record. You'll hear more on those capabilities later from Rick Rieder. Now, even with these strategies, we are still in early innings. We've already brought both products to Europe, and we'll continue to bring the best-in-class portfolio managers to the global ETF market. Establishing new iShares clients is a major growth driver for our business globally and in the U.S. The shift in wealth management is accelerating from individual stock and fund selection to a portfolio-based approach. Specifically, the demand for models is growing, and this presents a critical opportunity to further scale iShares.
As you'll hear from Rich Kushel, US model portfolios comprise $4 trillion today but have a total market opportunity of over $11 trillion as large, fast-growing advisors are increasingly outsourcing portfolio construction to inject scale into their business. The rapid growth of models is fueled by four big trends: more custom models, more tax-aware investing, the evolution of the 60/40 portfolio to now include outcomes and alternatives, and the increase of hybrid mutual fund and ETF models. In fact, ETFs now comprise over half of US model assets. iShares ETFs continue to serve as building blocks for model constructors. Strategic partnerships such as with Envestnet, Schwab, LPL, and other third-party providers are helping to deliver iShares as investment solutions to advisors and their clients. Now, models used to all be about core, low-cost index building blocks.
While core is still a key driver, we're also seeing increased adoption of custom models. Our diverse range provides model portfolio managers the broadest choice. As you can see in the chart on the right, nearly half of iShares model flows in 2024 came from these growth areas. It is because of that breadth that in 2024, model-driven assets for iShares exceeded $600 billion in assets. In summary, the scale of our platform in the U.S. enables consistent 5%+ organic revenue growth through the cycle. Our diversified platform offers our clients the tools to build modern portfolios, from core to precise exposures to next-gen solutions like Active ETFs and digital assets. We are growing our client base across model builders, institutions, and first-time investors, bringing millions of new clients into the iShares ecosystem. Many of these trends are also starting to take hold in Europe.
I'm going to pass the mic over to Jane to speak about the exciting opportunity we have for iShares in that region.
Good morning, everyone. I'm Jane Sloan, and I lead our European iShares business. I'm thrilled to be here with you today to share three key messages. One, the European ETF industry, it's at a pivotal moment. Two, iShares is far and away the leader in this market. Three, the best days for European iShares are still ahead. The European ETF industry, it's really a coming-of-age tale. Assets have more than doubled in the last five years to over $2 trillion. It's a $5 billion revenue pool, growing 9% annually. What's really interesting is how Europe's growth is tracking the US. The chart to the right, it's got Europe in yellow, the US in red. It tells two stories.
One, first at $2 trillion, Europe is at an inflection point. If it continues to track the U.S. path, hockey stick growth lies ahead. Second, there is significant room to grow. Take index penetration in wealth portfolios. That sits at just 20% in Europe, 20%. In the U.S., 50%. Yes, Europe is a much more fragmented market, but the same growth forces are at play. Rising indexation in wealth portfolios, the shift from underperforming funds, and the expanding adoption of ETFs in new use cases across more client segments. We believe the industry is poised to accelerate, nearly doubling to $4 trillion. The question is not if this market will expand; it is how fast. iShares, we have been a driving force in Europe's ETF expansion, shaping the market, benefiting from lessons in our U.S. business. Today, iShares is number one by a distance.
With over 40% market share, we lead in nearly every product category and serve a diverse client base across Europe, Asia-Pacific, Latin America, the Middle East, and Africa. In February, actually on Valentine's Day, European iShares crossed $1 trillion in AUM. The velocity of growth has been remarkable. It took 20 years to gather the first $500 billion and only four years to gather the second. At the same time, we have extended our lead versus the rest of the market. Five years ago, we were $255 billion ahead of the next issuer. Today, that lead has nearly tripled to over $730 billion. This leadership has not just been about scale; it has also translated to financial strength. Over the same period, we have delivered base fee growth of over 9% per annum, generating almost four times the NNBF of the next issuer.
As we look ahead, European iShares is poised to enter a new phase of expansion. By 2030, we expect assets to hit over $1.6 trillion. Winning will come down to driving client adoption and unlocking new distribution channels. The big ETF growth story in Europe is the continued revolution in wealth. Today, wealth drives over two-thirds of our assets and will drive 70% of our flows to 2030. Two structural trends will accelerate ETF adoption in this segment, both areas where iShares is uniquely positioned to capitalize. The first is the shift towards centralized portfolio propositions. Roughly $5 trillion sits in fee-based centralized propositions today, and we expect a further $3 trillion of assets to shift over the next five years. Portfolio-building behaviors favor ETFs, and European iShares differentiates by providing the breadth, scale, and quality needed by portfolio managers.
We have over 160 billionaire funds, two and a half times more than the next issuer. The second trend accelerating ETF adoption is the rise of the self-directed investors across digital channels. It's a key growth driver for our business. In fact, digital is the fastest-growing wealth channel in Europe, growing over 15% per annum, with tens of millions of first-time investors all across Europe choosing ETFs as the simple, affordable way to invest. iShares has been a first mover in this space, pioneering ETF savings plans and affordable set-it-and-forget-it offering that enables monthly contributions for retail clients. For us, it's annuity-like flow, adding resilience to the market-driven parts of our book. iShares MSCI World, that's the darling ETF of savings plans. It's been the number one NNB and NNBF gatherer over the last five years and is now over $100 billion in assets.
It is not just a wealth story. We are unlocking new use cases and users across asset managers and asset owners. Today, 15 European central banks use iShares to manage strategic and tactical asset allocations, a testament to the quality of iShares and the trust placed in us. Pension funds are using short-duration ETFs to manage near-term liabilities. Asset managers are using our ETFs to manage tactical allocation with agility. The list of use cases continues to grow. As you heard from Jess, innovation is our growth engine. European iShares has a long-standing legacy of building new categories of investing, developing entire suites at scale. Think fixed income, sustainable, thematic ETFs. Our track record really does set us apart. Over the last three years, iShares product launches have generated double the NNBF of the next closest issuer. At the same time, innovation velocity remains high.
Nearly 20% of our overall NNBF last year came from products launched since 2023. Still, we're upping the pace of innovation. We launched twice as many products last year versus prior, and of that, twice as many were in premium fee categories. We estimate that 15% of iShares' base fee growth will come from entirely new categories such as Active ETFs, digital assets, or option-based ETFs. In Europe, the majority of innovation-led growth will come from extending existing building blocks. Steve talked about fixed income. In Europe, we lead this category with over 50% market share, offering the broadest and most granular set of exposures. Our ambition is to double our fixed income ETF AUM by expanding access to more parts of the bond market. iBonds are a prime example. Launched in 2023, we were first to market.
iBonds is our fastest-growing suite ever in Europe, gathering over $8 billion in under 18 months. Today, we've nearly 90% of the fixed maturity ETF market in Europe. Across equities, we're broadening our offering, building suites tailored to meet the needs of different clients. For sophisticated index investors such as portfolio builders, we're launching precise slices of beta, offering more choice than any other issuer. Take U.S. equities. Investors can now dial up or dial down concentration to the largest U.S. companies with our S&P 500 top 20, or our equal weight, or our 3% cap. For the self-directed client on digital platforms, we're delivering simple, broad market ETFs and also themes that resonate from AI to Bitcoin, both recent launches. For institutional clients who want differentiated performance, we're extending our swap platform with the best-in-class operating model, raising the bar on quality and efficiency.
Also, we're finding even more ways to be local, building products tailored to local requirements that enable broader adoption of ETFs. Examples range from ETFs eligible for tax-advantaged investment accounts for French retail clients to European defense ETFs for European portfolio builders. To power future growth, we're also building entirely new categories of investing, including Active ETFs. Jess talked a lot about them in the US. In Europe, it's still early innings, but the category will grow. We're delivering more strategies in the Active ETF wrapper and commercializing areas of BlackRock's strength with a focus on, one, systematic active building blocks for the core of portfolios, taking our top-performing systematic franchise mainstream. Two, bringing our best fundamental strategies to more clients, including a European version of BINC that Jess mentioned. Our European iShares momentum, it's stronger than ever.
With a diversified investor base across markets, an unmatched product platform, and a faster-than-ever pace of innovation, we are positioned to lead this next chapter of growth. The best days for European iShares are still ahead.
Thanks, Jane. Bringing all of this together is all about how we take iShares to the world. We are exporting and scaling some of the franchises we just talked about. We are creating truly global franchises, and we are doing it in whatever way works for the local market. Whether it is Bitcoin, factor rotation, flexible fixed income, unconstrained equities. Jane highlighted how we are thinking about taking the scale and the power of our usage platforms, developing custom solutions for local markets. She gave one example. Another example is Peso-Hedge Strategies for Mexican pension reform. We are continuing to expand our local ETF ranges, which we have in Australia, Japan, Canada, and Latin America.
We can give clients even greater access both to domestic and global markets. In fact, this year, we'll be launching a new iShares platform in Taiwan, which is one of the fastest-growing ETF markets in the world. We look back over the last 25 years, iShares has powered the growth of the ETF industry. As you heard, we're just getting started. Just as e-commerce redefined how people access goods and services, ETFs are redefining how the world will access markets, bringing transparency, speed, and simplicity to investing. We look out to 2030, we believe ETFs will be ubiquitous and indispensable across pretty much every asset class and every investment style. As we have before, iShares will lead this next era.
With the unmatched scale we have with the BlackRock platform, the global reach, and the power of innovation, we will empower tens of millions of new investors around the world to build better portfolios with iShares. Thank you. Now we invite you to take a short break.
Please take your seats. Our program will begin in five minutes. Please take your seats. Our program will begin in two minutes. Please take your seats. Our program will begin momentarily. Please welcome back to the stage, Caroline Rodda.
All right. Thanks, everyone. We'll have another break around 11:15. At this point, I'm going to turn it over to Rich.
Good morning. Great to be with you all this morning. I'm Rich Kushel. I'm the head of the Portfolio Management Group.
Today, I'll be speaking about our Liquid Active platform, the growing importance of active management in today's environment, and how BlackRock is positioned to win in active. We're meeting the changing needs of our clients by offering a spectrum of solutions across asset classes and geographies in both public and private markets. Since our founding as a fixed income shop, we've always been committed to bringing our active expertise to our clients. Over the years, market cycles have passed, client needs have evolved, and our offerings have diversified, but we consistently have grown our active footprint. Today, BlackRock's Liquid Active assets total $3.6 trillion. This base is largely made up of our fixed income platform with AUM over $1.1 trillion and our multi-asset business at about $1 trillion.
Over the last 12 months through the first quarter, we have achieved $215 billion in net new business, resulting in 7% organic growth over the period. That's in an industry that's seen flat or negative asset growth. We brought in $120 million of net new base fees, continuing our track record of organic growth. Year-over-year revenue growth against base and performance fees was 15%, reflecting our growth, investment performance, and the trust that clients have placed in us. Beneath these top-line figures, I want to highlight a few of our thriving businesses. As my colleague Raffaele Savi will discuss in greater detail, our systematic strategies across equities and fixed income grew base fees organically at double-digit growth rates last year and have further accelerated this year, driven by outstanding performance across the platform.
In fixed income, as Rick Rieder will talk about, we continue to see investor appetite for things such as our unconstrained solutions, such as our $40 billion flagship Strategic Income Opportunities Fund, or more recently launched iShares Flexible Income Active ETF, known as BINC, which was referred to earlier, which has grown to $9 billion in AUM in just two years. Our active muni suite has delivered strong long-term performance with multiple funds in the top decile for five-year performance, while we've innovated our wrapper strategy there by packaging muni funds into Active ETFs. As we'll talk about, our insurance AUM has nearly doubled over the last five years, fueled by continued demand for outsourced solutions. Let me put the growth in our active platform in perspective for a second.
Over the last five years, BlackRock has averaged over 6% annual organic AUM growth in our liquid active businesses. The broader industry average is sub 2%. While our active market share has increased each year since 2020, we have significant runway to grow beyond our current 4% level in what remains a highly fragmented industry. Our clients continue to trust us to manage their active portfolios because we've delivered strong long-term performance. Through March, 78% of our active assets are above benchmark or peer medians for the last five years. Strong investment performance, in addition to supporting growth, contributes directly to the firm's earning power. 2024 was among our top years for performance fees at over $900 million, excluding our private markets business.
Importantly, our performance fee generation in liquid active is highly diversified, with over 90 portfolios each generating more than $1 million in performance fees in 2024. In total, we generated performance fees on over $150 billion of AUM in 2024, up more than 10% from 2020. That base continues to climb this year with strategic additions to our product lineup. Now, before I dive deeper into our capabilities, I want to touch on why active is so crucial today. We believe that structural factors play to active management strengths and give us an opportunity to drive revenue growth. The 2010s, as you know, were defined by a regime of low rates and asset price inflation that enabled investors to enjoy the overall beta of the market to achieve their investment objectives.
Over the last few years, of course, we've seen a shift towards a high volatility, high dispersion regime that requires active management to protect capital and alpha generation to deliver target returns. Uncertainty has become the watchword of 2025, but we see this trend lasting longer. Geopolitical variability, technological change, and the energy transition will continue to drive volatility uncertainty, but this creates opportunities for active management. Against this backdrop, key trends like index concentration, structural inflation, and the blurring of public and private markets are making markets more complex to navigate, causing investors to look for professional help. The upshot of these trends is greater dispersion across managers. The best ones are rising to the challenges of today's market and outperforming their peers. These are the strategies that are winning new flows. Increasingly, alpha generation is a scale game. This is an important change.
Whereas size used to be thought of as the enemy of alpha, it's clearly become an advantage in our ability to generate differentiated insights, attract and retain talent, deliver consistent risk management, and produce implementation alpha through trading and liquidity advantages. Data and technology have been key accelerants across each of these dimensions, and AI will only turbocharge these scaled bias trends further. Look, in this environment, both the demand for and the availability of diverse ways to access active investing are evolving. The existing scaled liquid active platforms with large revenue bases and asset bases persist. We see this and enjoy this across our businesses with fundamental equity, with fixed income, multi-asset, systematic hedge funds, and cash. Clients are also increasingly turning to newer approaches: outsourcing, models, Active ETFs, and the blending of public and private markets. This evolution is spawning new fast-growing market segments.
The outsourced CIO opportunity is growing as asset owners and wealth managers are increasingly looking to focus on their core competencies and outsource more of their investment processes. We expect OCIO AUM to grow to $5.8 trillion by 2028. The models portfolio business has also become a true standout for BlackRock. Financial advisors want to spend more time building their book and engaging with clients and less time constructing portfolios. This is where they turn to BlackRock. The client demand is strong. We estimate the total opportunity in models to be $11.5 trillion, driven by accelerating demand from wealth clients globally. Active ETFs are increasingly becoming an important part of investor toolkits, with the industry growing over 40% organically in the last three years, as you heard.
Investors are choosing to access actively managed strategies through ETFs due to the wrapper's benefits, including tax efficiency, transparency, and very importantly, their compatibility with model portfolios. Now, through the outsourcing platform in our multi-asset strategies and solutions business, we're well positioned to address the complex investment challenges for our OCIO clients, and that's driving strong growth globally. In the past two years, for example, our OCIO business landed a $35 billion mandate from the Teamsters Central State Pension Funds here in the U.S., a $30 billion mandate from Shell Pensions in the Netherlands, and a $10 billion mandate from the Royal Mail Pension Plan in the U.K. Our insurance business also has very strong momentum. Combined, in the last five years, we have doubled the outsourcing assets we manage across both institutional and wealth clients to over $840 billion.
These mandates prove very sticky, and once we begin managing them, we've consistently found ways to broaden our relationship and the services we provide, driving incremental revenue growth and value for clients. Now, through models, we've expanded the way clients access our platform and insights, moving from products to portfolios. That expansion means both broadening the range of models and the vehicle used, all the while differentiating ourselves through great performance and unmatched client experience and a flexible infrastructure platform powered by Aladdin. While a decade ago, our model portfolio business was exclusively comprised of index iShares, today the vehicle mix has evolved to include active ETFs, mutual funds, and liquid alternatives. This has boosted our average models fee from 12 basis points in 2020 to 19 basis points today.
We are now beginning to incorporate separately managed accounts and private markets, opening opportunities for growth and capturing more wallet and revenue share for BlackRock. We are building an innovative custom models business to meet the needs of the largest and fastest growing RIAs. We deliver mass customization at scale so investors can leverage BlackRock's asset allocation and tech stack to facilitate their own investment processes. Since launching in 2020, our custom models business has grown to $55 billion in AUM and more than 150 different client partnerships. The business manages about 4,000 models for clients, and our platform can scale with minimal increase to overhead. This is industry-leading tech-enabled automation.
We are transforming both the business that our clients are operating, driving real enterprise value for financial advisors, while at the same time increasing the value to the end investor through the use of a broader set of vehicles and investment IP that drives better returns. This kind of innovation is how we win in whole portfolio solutions. I want to emphasize that our success and scale do not mean that there is not a lot of room to run here. We see large growth opportunities in front of us in areas like integrating active products and private assets into things like our target date fund regime. Now, as you already heard from my colleague Jess on Active ETFs, and you will hear more about them from both Rob and Rick, active ETFs are going to be really important.
I just want to note very briefly that our Active ETF platform has quadrupled in the last five years, with 2024 driving most of that growth. This is an area that we're really incredibly excited about. Let me just say that innovation has been fundamental to BlackRock's success. We continually reinvent ourselves to capitalize on opportunities in markets and deliver for our clients. We're positioned to win in active because of our long track record of performance, with over $100 billion of alpha generated for our clients since 2012, and our ability to deliver traditional active strategies in new and innovative ways. That's why I'm confident that active will always be at the heart of the BlackRock success story. I'm very pleased now to turn it over to Raffaele Savi, who will speak to our systematic platform.
This is a prime example of how we're innovating to drive performance for clients and revenue growth for our shareholders. Thank you very much.
Thank you. Thank you, Rich. Raffaele Savi, I run systematic investing at BlackRock. Actually, it's quite great to be here with all of you this morning and talk a little bit about the business. I think it's the first time we present the business in some details, and I'm excited to have the honor to do so. Before we talk about that and why we think this business can play an important role in achieving our collective 2030 ambition, I want to talk about a broader story. The broader story I want to talk about this morning is how investing is changing. We live in a world, many of us have been doing this for quite a while.
I've been reading a lot of research notes of colleagues here for more than 20 years. The way we've been talking about investing so far, for example, this morning, or Sudhir and Goldie, they talk about data. We didn't really used to talk about data 20 or 25 years ago. It was really more about information was the concept. Investors were sort of trying to find information about assets. If you think about how things have changed there, we went in 20 years from a world of information scarcity. It was very hard to find high-quality insight into companies, markets, products to a world of information abundance. Some might say overload. There's so much that we can know about everything.
There's sort of millions of documents, trillions of search queries, millions and billions of videos and speech and posts and live data feeds in every geography and every language available. Now, the way that the industry is talking about this is tokens. And there's 10s of trillions of tokens about the world that keeps streaming in every day. When we think about research, what do we do with this information? As investors, we're trying to put it together, collect dots, connect dots sometimes in ways that are new and different and insightful. Now, I was reading the founder of one of the preeminent AI labs in the world today that was talking about having a country of geniuses in a data center. I don't know if any of you ran across this quote, right?
Now, I'm not making the claim this big, but it is true that today you can do research deep and broad helped by AI agents. And Goldie was showing some of the work with Daniel BlackRock, with Asimov. The reality of sort of research in the age of large language models is very different from the way research was even five years ago. Now you have the ability to have a team of virtual analysts that are working alongside your experts in trying to understand where there could be an edge that can be played in the market. Something that we do not talk about often, I think, in this new AI revolution is what is happening on the portfolio construction and risk management side.
I think that this is as profound, even if it's a little bit less visible than what is happening at the research and information side. It is powered by speed. It's powered by this concept that sort of things that used to take hours, real-life simulation, changing parameters, trying to understand how you would crunch all these ideas you had in a portfolio that had the chance to deliver on a particular investment objective. Now, this is a real-time, millions of simulations a day happening in the background, developing situational awareness that is making sure that the portfolio reflects the intentions of the portfolio manager. The world has changed tremendously. I think if you run a systematic investment team, you are at the tip of the spear who really feel this change happening fast. I think that there's something broader.
I think there's something that is sort of happening across asset classes and investing. A lot of the forward-looking statement I will make in are based in this belief that the world of investing is really being significantly impacted by this technological innovation. There are some numbers at the bottom of this slide on how the business has been doing. I want to go into some further details here. If you want to take something out of this first slide, it's that sort of the concept that many of us have mentioned this morning of technology and scale, not only as drivers of business success, but as drivers of alpha inactive. That trend is really important and accelerating. Now, the business of systematic investing at BlackRock, it's about $320 billion in assets. 2/3 are in equities.
We have about $20 billion in hedge funds, and a third of the assets are fixed income and multi-assets. Last year, in 2024, we came in a little shy of $1 billion in revenues. As Rich was mentioning, the business has enjoyed substantial growth in recent times. The 12-month trailing to the end of Q1 this year, $134 million of an NNBF and about $25 billion in that new business. I think that what this says is that in an industry that sometimes has sort of been questioning whether you can grow in liquid active, I think that what this is saying is that if you deliver consistent performance and if you're able to package it in a way that is interesting and exciting and helpful to the end investor, you can grow a lot in this industry.
One thing that I think is also interesting about the way that we've been driving the business forward is how diversified revenue growth has been. This goes back to what I was just saying, that maybe you have good performance, but the vehicle isn't the vehicle that investors are using today. For example, the way that you have to deliver performance and alpha to a model manager is very different from a traditional financial advisor. The way that you work with a sovereign wealth fund these days is very different from the way that you work with sort of a corporate pension fund. The platform of BlackRock is incredible in sort of understanding how to connect investment ideas and portfolios to client objectives. The big driver of growth has not been in the last five years products that we necessarily had five years ago.
A lot of product innovation, the combination of product innovation and strong performance powered by scale has been where a lot of the growth has happened. A few of us already mentioned Active ETFs. It's an incredibly exciting category, opened the door to a lot of new end-use and investor bases. Proud to have DYNF, the factor rotation ETF, has been sort of leading industry flows in 2024. We are doing a lot of work with Jess and Jane and Stephen and a lot of other colleagues in understanding how to deliver even more of our investment platform through this channel. The second area that has been really interesting, and I think it does tie into Rich's comments on market environment, hedge funds in the 2010s has not been the fastest growth category.
It is still where you display your purest ability to generate alpha, the strength of your investment process. In terms of sort of investor allocation, it hasn't been as strong as we've seen it in the 2000s. We've seen in the last 18 months a renewed interest, probably due to higher rates, probably due to increased volatility and dispersion. This has been a very strong area of growth. Another thing that I'd like to highlight is this concept of diversification of the platform. One of the challenges of growing active businesses is that sometimes you grow with one product. If something happens to that product, then a lot of your growth objectives sort of get put on the shelf. We have 25 products in BlackRock systematic that are at scale that generate more than $10 million in revenues.
The growth has been nicely diversified across hedge fund, long-haul Active ETFs, mutual funds, institutional wealth, and importantly, products that are pure alpha delivery, products that are exposure products, and products that are outcome products. I think that that is key in having consistent growth going forward. The last part I want to sort of quickly spend a minute on is if you're thinking about all this movement of systematic investing, big data, machine learning, and AI, it really started in equities. It really started in short-term forecast in equities. That's where you have a lot of examples. That's where you have a lot of data. That's where sort of it's natural to become an AI ML investor in those asset classes.
What I think is really interesting, and when I'm looking at the horizon of our strategy to 2030, I think we're already seeing that this style of thinking is expanding to other asset classes. We had incredible success in systematic credit. We had very interesting early launches alongside our private equity colleagues in growth equity space. I think this concept of sort of systematic investing going from institutional equities, mostly short-term, to institutional and wealth, to equities and fixed income, to public and private, it's a very powerful trend that we'll see play out over the next five years. Finally, there's no better place to run the business I run than BlackRock. You heard it from all of us. We can't go to a presentation without talking about our belief in the transformational power of technology and our obsession with delivering scale advantages to our end clients.
Systematic, it's a business of technology, and it's a business of scale. Here are some ideas on what we've been doing over the last few years. Some of them are obvious. Of course, we're pretty uniquely positioned in terms of leveraging the Aladdin platform and our data acquisition capabilities. I think we have an incredible ability to deliver advantages to clients on our training platform. Rich was mentioning some of them, and Goldie was going through them as well. I think one thing that this new generation of AI models is creating is proximity between different types of investors. The conversational nature of generative AI is making it much easier to collaborate across different asset classes and investment styles. If you think about it, we all want to collaborate with our colleagues, but we're somewhat limited. The bandwidth is human interaction.
If you are collaborating through phone calls and through meetings, there are only so many people you can talk with while running your business. Everybody's busy. Now, generative AI and the conversational nature of these tools allow us to capture insights across the broad BlackRock investment platform and share and leverage each other's strength. The point of all this is sort of that's on the investor side, on the how we make it side, right? As I was saying earlier, I think that magic happens when you innovate on how you generate alpha, but also how you deliver alpha. I think that in terms of what clients are looking for, it's an ever-evolving set of needs.
You can have a wonderful product, but if you cannot put it in that client portfolio, that moment, the way they want to consume it, you're not going to be able to grow. This trend of sort of customization at scale, this trend of sort of targeted outcomes that we see in the end investor choices is something that, again, a systematic investment approach is very well positioned to deliver. Systematic has been a growth engine for BlackRock in recent times. We have confidence that this can be one of the growth engines for our strategy in liquid active and beyond to fire our collective ambitions in 2030. Thank you all very much. Rick, up to you.
Thanks, Raff. Good morning, everybody. I'm going to talk about leading the future of fixed income.
I did the math that I am actually approaching my fourth decade in fixed income. I had to do that math a couple of times, how horrifying that was. I have to say, I've been doing it almost four decades. This is the most exciting time. I want to talk about the evolution of fixed income and how much it's changing and how different today is and where we're going. First thing, let's start with the facts and we'll talk about BlackRock. $3 trillion in BlackRock fixed income, $1.9 trillion in what is ETF and non-ETF index, $1.1 trillion in the active platform, as Rich was talking about, $930 billion in cash management, $206 billion in private client assets, $4.1 trillion across fixed income, cash, and private credit, $160 billion LTM net new business at a 6% growth rate. I'm going to talk about this in a second.
$162 million LTM net new base fees, 5% organic growth rate, $3.7 billion 2024 base and performance fees, 7% revenue growth rate. Let's talk about one thing I've learned in this business, that it's all about performance. If you don't perform, the money doesn't come in. One thing I will say, I'm super proud of this slide. We've won a huge number of gold medals from Morningstar, others. One thing they tell me regularly, it's not a lifetime achievement award. You got to come in, you got to do it year in and year out. Super proud of that. You see this chart on the right side, long-term performance, 87% above benchmark or peer median. We've got to keep doing that. You got to keep performing.
I'll talk about you got to keep using, similar to what Raff was talking about, the new tools at your disposal to try and get there to keep that performance where it is. Let's talk about flows. I'm going to give you a couple of stats around this that I think are pretty incredible. This is the industry growth 2020, 2021 through 2024. One thing you've seen is BlackRock's organic growth rate has outpaced the industry. I just want to put some of that growth rate in perspective. Think about what fixed income has been. Since 2020, the return of the aggregate index, the benchmark, since 2020, the total return is -6.5%. The total, if you take the long Treasury index, the return since 2020 is -35%. You think about your growth. By the way, let's talk about the paradox.
The S&P is up 60%. Nasdaq's up 75%. Bitcoin's up 270%. Think about to try and generate that sort of growth rate. We've been in a negative performing fixed income market. Think about long Treasury index down 35%. You hold that asset for the last five years to grow and to grow fixed income. Think about to grow the back end of the curve, et cetera, pretty darn hard. One thing I must talk about, I do think the starting point for fixed income today is pretty attractive. I'm going to go through some of that. Let's talk about this idea of how fixed income is changing. When I came into the business, it was interest rates. What do you do in interest rates? Do you like the back end? Do you like the front end? What does the curve do?
Now, dispersion is 145% higher compared to 2018. The number of tools you have to drive alpha, different parts of the cap stack, different regions, dispersion is significant. So your ability to create alpha becomes more profound. Six times the growth rate in private credit. Scott Kapnick is going to talk about this. Private credit, bespoke financing, doing things innovative around origination, big driver of how you create alpha. Index and ETFs improve flexibility and liquidity. By the way, 10/ 10 largest asset managers use iShares and ETFs. 8/ 10 insurance companies use bond and ETFs. The change of this industry, when I came in, you used to trade cash bonds. Now we use ETFs. Now we use futures. We use options. We use derivatives. Pretty incredible evolution.
Liquidity management for near-term obligations, so many different tools you can use to try and think about what the Fed is doing. Since that changes, what the interpretation of the Fed's doing changes roughly daily. Your ability to actually transact in that, including today, is pretty extraordinary. Let me throw one thing. I know a couple of people have talked about BINC today. I'd put this in terms of how do you optimize fixed income? That's different than it used to be. We're super proud. In BINC today, we're throwing off 6.5% yield. By the way, in the last two decades, think about where rates were at zero or at negative in Europe. Now it's 6.5% with a volatility of 3.3%. So it's almost an organic sharp of 2%. You can clip 6.5%.
What we're trying to do is build portfolios for clients that are optimized, consistent, give them a lot of yield and income, but do not keep them up at night. You look at the drawdowns on the upper right. How do we create a better product than just traditional, whether it is high yield, universal index at a lower drawdown, so that you can compound return more effectively by optimizing all the tools? Big thing for us. Can you do this using the huge number of tools we have to create a better platform for clients? Let's talk about dispersion in the world. This is, to me, and I did this for a different presentation, but I just want to show you something.
By the way, I did this to talk about the debt in the United States and to talk about how big it is and how you have to be concerned about it because every asset, basically in the world, certainly every asset in the U.S., you start with the risk-free rate. If you look at where we are today, the U.S. high yield market is bigger than the entire Canadian market. By the way, that's a, sorry, that's a double B, is bigger than the entire Canadian market. U.S. IG single A, bigger, 50% bigger than the whole U.K. U.S. IG triple B, double the size of the whole German debt market. Point being, there are so many different opportunities. The big thing for us today is like, where do you take IG risk? Where do you take high yield?
We're taking rate risk in the rest of the world. Dispersion, different regional opportunities, pretty powerful today. The buildout of the fixed income market globally has given you so many ways to take advantage of this. Pretty different point in time. Let's talk about, like I said, when I started in this business, rates came persistently down. Much more fun. The dynamic where you think about inflation was on a persistent deceleration. Now we're going the other way. New global, new regime, deglobalization, higher levels of inflation. The correlation of returns is different. The way you used to run 60/40 is people, you think about, gosh, I got to get long duration. It protects my equity return. It offsets my beta. Look at the data. By the way, that's the correlation today. If inflation's higher, bonds and equities correlate, correlate positively. Look at what happened in April.
Same time the stock market went down, the back end of the curve went down. Very different framework from what we used to run fixed income. I'll talk about, so what do you do with that? I think fixed income used to be an interest rate tool. Now it's about how much income can you create and how can you do it efficiently? Scott's going to talk about in the private markets. How do you do that efficiently? I think it's all about fixed income is income. You talk about today, so when you run, this was BINC or Strategic Income , which Rich mentioned, optimizing fixed income, you can run a model portfolio where you can create way more yield than cash. Look at this chart on the top right.
I've said in the media a bunch, this is the golden age of fixed income, not because I think rates are coming down. You can buy one to three year European investment grade, swap it back to dollars. Your break even in one year is 10%. We are in a global depression if that stuff is trading at 10%, meaning the yields you get today in the break- evens are so attractive. You do not have to go out the yield curve and you can stay in good quality. We could build these portfolios even with inflation. I show this on the bottom left. Even with inflation moving higher, even if you sit in the front end, you think about the two-year. If you can add securitized, if you can add high yield, you can add privates, you can eclipse the rate of inflation.
You can actually double the rate of inflation even if inflation picks up moderately. Pretty incredible dynamic. By the way, I always have to remind myself, nine years in Europe of negative interest rates, nine years, the craziest strategy of all time, nine years of negative interest rates. Today we're building portfolios using Europe, where we're the biggest, I think Europe's the best opportunity where you're getting, you look at those numbers, if you swap back to dollars, you're getting 6%-7%. Pretty amazing point in time. What generally drives return is your forward starting point. Your forward starting point today is pretty attractive. Let me finish on one last thing on this. This chart on the upper left gives you a pretty good perspective of where we are today. That star is where we are today using the two-year note.
Again, put securitized on it, put yield on top of it. The red part of that bar is 50%, almost 50% of the last 20 years. The two-year was under 1%. Two-year was under 1%. 20% of the time, the two-year was 1%-2%. So two-thirds of the last two decades, you had to sit, you had to buy high yield to get four. Now you could sit in the front end. By the way, same thing in the five-year, 10-year, exciting, but I would argue the curve's going to steepen. Very different paradigm in terms of where valuations are in equities. I still think equities are fine. Boy, that is super attractive.
The net conclusion, if you take a portfolio, this looks a bit like some of the optimized BINC, CASIO, you could build a portfolio of 6.6% with a duration under three years and a vol of 2.6%. Rich talked about models. If you're buying equities, you're buying beta, you're buying real estate, you're buying venture. If you can create almost 7% pension fund endowment with a vol of 2.6%, it fits incredibly well into a portfolio. To summarize, more tools, more things to do, more ways to create alpha, different fixed income environment than we've seen in the past. You need global expertise. We've got over 500 people within our franchise looking at, should we own rates in Indonesia? Should we own them in Europe? Where on the cap stack do you want to do it? Differentiated sourcing. I'm sure Scott's going to talk about this.
The ability to originate real estate, bilateral credit, to put it together in a portfolio. And then like Raff was saying, can you put these tools together efficiently so it's not a mess? Correlation, dispersion, beta, and then flexibility. How do you use which of these tools do you want to use? When do you want to use ETF? When do you want to use a mutual fund, et cetera? So in four decades, I'm still pretty excited. I think fixed income is going to a very different place. I'm going to pass it to my friend Scott.
All right. You guys have built an incredible business, and we look forward to working together. And lots of activity here to talk about. Good morning, everybody. It's great to see you all here today.
Before I start, I just want to take a minute to thank Larry and Martin and really the whole BlackRock team for believing in our business and giving us the opportunity to join them in shaping the capital markets and the alternatives industry. Rick touched on what's going on, but I truly believe we're in the midst of a once-in-generation reconfiguration of Western Capital Markets. Now we're right in the middle of it together with BlackRock. BlackRock has also entrusted us really to run a large business. You see here, $280 billion, a large combined business, and we're going to work hard every day to earn that trust. BlackRock and HPS each have entrepreneurial cultures. You've heard it this morning. Really, one of the things that really drew us to BlackRock was the caliber of the team and BlackRock's track record of innovation.
We are very excited to form that partnership. The firms both have founder-led cultures, and we both like to get stuff done. I have been amazed that we have worked tirelessly together with Martin and his team over the last six months since we announced this deal to ensure a smooth integration. We are ready to hit the ground running on July 1. The combination of BlackRock and HPS creates an asset manager with breadth and scale to compete with anyone in the industry, banks or non-banks. Today, I want to talk a little bit about how the market forces are driving this. Rick highlighted a bunch of them going on, but really preview the platform we have created and also give you a window on how we plan to grow this business in the future.
This slide, some of you may have seen this if you had discussions with us in the past about how we see the private credit industry. Post-close, this platform will manage approximately $280 billion in assets. Bringing together our combined businesses will create a really fully integrated private credit and fund sponsor business. Combined, we'll also be a top-tier public and private CLO business. As one, we'll be able to provide investors with a holistic credit solution that they demand. Really from non-investment grade, high-grade, liquid, and private, including starting from the left, $122 billion of direct lending, $39 billion across junior capital. That is together really our private direct lending business, $30 billion in asset-based finance, $49 billion in liquid credit and CLOs, and $6 billion across multi-strategy debt solutions.
Really, that last column then on the chart shows $34 billion in GP/LP assets, which are a wide range of capabilities. We'll also be very well positioned to be a full lifecycle partner for the fund sponsors that we deal with, which sort of takes us to the next slide. When I talk about private credit, I think it's important to put it, Rick, put the sort of fixed income market in context. I want to put the industry's growth and size into context. This chart starts in 2014, but in 2007, we started HPS. Really, private debt was sub $300 billion asset class. Today, it's over $1.6 trillion and on track to grow to $4.5 trillion. Just tremendous secular tailwinds really pushed from the financial crisis when the regulators, by design, wanted to push risk assets off of banks and into private enterprises like ours.
It's interesting to note that the data shows that the bulk of flows, and I think Martin, someone highlighted this this morning, the bulk of the flows are going to the largest managers. Nearly half of those flows go to those large managers. With BlackRock, we're as well positioned as anyone to capture this opportunity. I'm going to come back to these orange boxes here and go into a little more detail, but really wanted to highlight a few of the growth drivers. First, capturing the growth in private high-grade. That's a massive total addressable market and an area where we have really actionable strategy and very exciting opportunity. Asset-backed, which is the second box, is also related to number one and together a very large opportunity. The opportunity across private wealth, I'll go into detail. We have very exciting opportunities there.
When we bring the combined capabilities of HPS and BlackRock together, it's very exciting what we're going to do there. Fourth, it's really the larger deals. Not everybody knows that it's really the larger deals that are driving growth. HPS is already a leader in the larger deals. Big picture, we're very well positioned to capture those secular tailwinds here on growth. Really, the opportunity is as big as I've seen in my 40-year career. It's why we're very excited to be doing it together. Next four slides, I thought I'd just touch a little bit on who HPS is to the extent you don't know that. These numbers go back to sort of just the HPS numbers.
From the beginning, again, we've been at it 17 years, purpose-built to capture the opportunity in private credit and really in a unique and purposeful way. We're credit specialists. Just like Rick talked about, 40 years we've been at it trying to provide solutions to our borrowers and to our LPs. When we started the firm, it was our mission to deliver quality, both absolute and relative terms, returns to the world's most sophisticated investors. While we're really focused on being a reliable and trusted capital partner to our borrowers, and we have been that, and we continue to be that. I think together with BlackRock, that's even more powerful. To do this, when we started, we knew we needed to be a global business. We really wanted to create differentiated sourcing channels and the scale to execute those deals with any size and shape.
Today, we're a leader in that alternative credit ecosystem. We manage over $150 billion of AUM. $130 billion of that is in private credit. We operate at scale across the capital structure, really from the most senior to junior and around the world. The importance of Europe, I agree with Rick, Europe seems very attractive right now. We have 800 people around the world, about 100 in Europe, more than 250 investment professionals. At our size, we really provide a certainty of capital and flexibility that you can't find in the public markets or often can't find. We also can often execute on a transaction faster and with more discretion, which is why borrowers come to us. For investors, we offer products spanning the capital structure, and we pride ourselves on creating bespoke solutions for our clients, really customized portfolios very similar to what you've heard this morning.
For our portfolio companies, we aim to be a true partner. We want to be somebody that can facilitate today's transaction, the next transaction, and the transaction after that. No matter what the complexity or size, we want to be their partner for the future to grow their business. I mentioned the capital markets are changing. There is not enough bank capital in the world to keep the world growing. Private pools of capital coming together is critical to help fund the company's growth. In credit, origination is and will continue to be the dominant capacity constraint. Let me say it again. It is about origination and figuring out how to create that origination from the beginning. We really prioritize differentiated sourcing with a relentless global focus on both sponsor and non-sponsor transactions. Historically, over 60% of what we have done has been sourced outside the sponsor channel.
That is actually a very important point, not very often known. The non-sponsor market is huge and can often generate more attractive returns. You see, it is really that premium in the orange shown in this chart. It is sometimes very hard to find and generate these returns. Oftentimes, the deal requires more diligence and more time to negotiate. You have to build a kind of credit team that will do it well. That is what we are bringing here together with BlackRock. You have to have the relationships across the industries. We have been at it 17 years now. The depth of the industry relationships across geographies, and you have to be really a reliable partner for borrowers. It is paramount to our future success that we continue widening the top of the funnel. The combination with BlackRock does just that.
The wider the funnel, the more selective we can be, the faster we can scale, and the better we can deliver risk-adjusted returns that our investors expect. At the same time, origination is not worth much if you do not have that scaled, flexible capital needed to execute. Historically, most of the large deals were done in the broadly syndicated market and more traded fixed income. Over the last four years, you can see in this chart on the left, private credit has proven it can be a viable alternative at scale. North of $1 billion deals. We have seen borrower adoption continue to grow. We are certainly seeing a pipeline of opportunities be very large for us with several more than $1 billion deals coming to the market. It is really our pipeline that is continuing to show this growth.
The majority of the growth in the non-investment-grade market is also being driven by these mega deals. There are only a handful of players, ourselves included, that really have the scale to lead these transactions. Our ability to do so across the capital structure, both senior, junior, investment-grade, non-investment-grade, is particularly differentiating. Leadership in these transactions is really particularly important because it allows you to control the documents, puts us in the driver's seat in the event that things do go wrong. Importantly, over the last six years, HPS has led or co-led more than 25% of these billion-dollar large-cap transactions. We are very excited to work with the team at BlackRock to continue to look at those opportunities. A big, big driver. The true north in investing, Rick said it, is performance. We're completely aligned on that.
I like to say that performance, it's performance that creates scale, not the other way around. We're very proud of our track record. You can see it here. Just a few highlights since inception. Relative to the public market benchmarks, our direct lending strategy has generated 3.2% compared to a public benchmark. Premium, that's on the left. Then 7.9% premium in the junior capital. Capturing that for our investors has really led to the success in fundraising and sustained success, really allowing us to raise over $10 billion in each of our latest flagship vehicles. You can see the direct lending, we break into core. HLEND is our non-traded BDC, which is $10 billion-$20 billion of assets. On the right, the junior capital strategy, which we're now out with our sixth fund. Again, very exciting feedback from investors.
I've been humbled by the investor support and understanding of the industrial logic of this transaction. We very much appreciate that support in the fundraising. Rob Kapito said he really wanted us to make sure we left you with one message on growth. I have one message, but it has three parts. Part one, part one really is growth in private investment grade. Again, one of the largest and most immediate areas for growth. It's a multi-trillion dollar opportunity that's going to span everything from asset-backed lending, real estate, NAV financing, and secondaries. A recent research report has suggested private credit markets could reach $40 trillion, so way bigger than the TAM I showed growing to $4.5 trillion in 10 years. We're only going to do that if we get there through the proliferation of private IG.
That is when I said we are remaking capital markets, a 40-year, 50-year generational shift here. That is what is going on. The shift is starting with insurance companies, but quickly going to pensions and sovereign wealth funds as well. If you look at the balance sheets of the world's largest insurance companies, they still are overwhelmingly invested in public fixed income. These firms are under competitive pressure to enhance their returns. It is really the place where insurance companies are looking for more yield and higher returns. Insurance companies have always been a huge part of the history of HPS. You heard earlier the history of BlackRock. We are an early move. HPS is an early mover in establishing a dedicated insurance solutions team to work with clients on product design, rated note structures, and regulatory reporting.
Unlike many of our peers, we're not a vertically integrated insurance company, meaning we don't control the insurance assets. We don't compete with our clients in any way. Today, we manage $60 billion of assets for over 125 insurance companies. BlackRock, you heard earlier, is the world's largest OCIO for insurers, managing over $700 billion across more than 450 insurance relationships. If we can convert just 10% of that $700 billion and provide 100-200 basis points premium over publics, that is hugely impactful for our investors and a very big tailwind for our business. Pretty straightforward. Post-closing, our platform will be better positioned than ever to be a high-grade solutions provider of choice. Really, the other two boxes on this chart, which I won't go into detail, but are almost equally important, the opportunities to be a partner and a sidecar provider for insurance companies.
We have a number of dialogues ongoing there. Also, the recent regulatory changes in Japan have provided a significant opportunity for that market as well. We are very excited about that. One message, second part, growth in the wealth channel. Our transaction brings together, you can see here, the existing HPS capabilities, as well as the existing BlackRock and planned activities in the wealth channel. These highly complementary capabilities really position us to be a leading player in wealth. On the investment side, together, we have a broad-based suite of scaled and proven strategies. From an investor perspective, our strong connectivity to the private banks, high net worth, and high net worth segments really supplement BlackRock's extensive distribution network and strength across wirehouses, independents, and RIAs.
With our capabilities under one roof, we believe we're going to grow fee-paying AUM in this segment from approximately $14 billion to more than $60 billion. These are already ready to launch or in existence. I think we're going to exceed what we've got here. That is what's in, I believe, Martin's model. As you can see across this page, growth is going to come through scaling existing vehicles, as I said, and then launching new vehicles, which are in the pipeline. Okay, one message, part three, GIP solutions. This is very exciting. I am excited to grow this business as anything we're doing. We want to be a solutions provider of choice for the world's leading private market firms.
The evolution of those private markets, driven by private equity, has led managers to consider alternative ways to raise capital and grow their firms and their portfolios. As well as managed liquidity and, importantly, returning capital to their LPs, which is a lot of a big need now in the world. HPS has already been doing this. We have fund financing, NAV financing, prep facilities, GP financing, and continuation vehicles. BlackRock is bringing its private equity and secondaries business together. Combined, we will have almost $200 billion of capital in this space and really just getting going to pull that together as a solutions provider, private credit and private equity capabilities, both primary and secondary into a single business, which is very exciting. As I mentioned upfront, all of this origination is predicated on all of this is predicated on origination. Origination is the key to growth.
You've got to find the deals. There's simply too much capital in the world chasing too few assets. Together, we need a comprehensive and proactive coverage of the banks, sponsors, corporates, asset origination platform. It's, to me, remarkable that we've built HPS with almost no wallet to the street. Now, with BlackRock, we're part of one of Wall Street's biggest counterparties and one of the world's largest equity owners. That is going to supercharge the origination engine and lead to better outcomes and is going to allow this leadership team here to have a lot of fun, both providing service to our clients and our investors. This slide is a great way just to reiterate our key message of the day. Growth, market backdrop, and alternatives is rapidly growing and evolving.
When it comes to delivering holistic solutions, scale, origination, breadth, together with the technology platform you heard today, Aladdin, and the amount of technology focus here, that is really going to be more important than ever to help us deliver. Together with BlackRock and GIP, I believe we have a differentiated sourcing, really differentiated level of understanding of what's growing businesses around the world and what those businesses need. I've long admired Bayo and Raj, and it's very exciting to me personally and to our whole team to be working with the best in the industry and the GIP team. As one team, we're going to be well positioned to serve the world's most sophisticated investors, borrowers, and sponsors. With that, let me hand it over to Raj, who's going to tell you more about the opportunities ahead in infrastructure. Thank you.
Thank you, Scott, from private credit to private infrastructure. Hello, everyone. It's a privilege to be here today, my first BlackRock Investor Day. For those of you who don't know me, I'm Raj Rao. I'm a founding partner of GIP and currently serve as its President and Chief Operating Officer. I'm based here in New York. For the first 17 of the 19 years of GIP's history, I was based in London. GIP is now a part of BlackRock, a combination that we are incredibly excited about as we are entering the golden age of private infrastructure. When we started GIP 19 years ago, infrastructure as an asset class did not exist. We were trying to raise capital for our first fund.
We'd go to an institution, and they'd sometimes send us to the private equity team, sometimes to the real estate team, sometimes to the fixed income team, and sometimes even to the Agri and Timber team. It's like, go and talk to these guys. Infrastructure has come a very, very long way. It's an asset class that is here to stay, and it is an asset class that is going to continue to grow. We are pioneers of the space. As of today, we absolutely define the asset class. Our AUM has grown from pretty much nothing in 2006 when we started to $183 billion today. I want to cover three things today. One, the scale and the breadth of our platform. Second, the multi-decade opportunity of infrastructure ahead of us. Third, the power of the BlackRock GIP combination. Scott, you mentioned this.
Rob, you said I had to deliver one message. I am going to give only one message, no parts to that, just one message. The message is very simple. Our aim and our goal is to be the premier infrastructure investing platform globally. We at BlackRock have the opportunity, and we are extremely well positioned to capture that. Let me begin by giving you a quick overview of the GIP infra platform. $183 billion under management, 19-year track record, started in 2006, actually July 1. In a couple of weeks, we will be exactly 19 years. The founders started the business, and then we were backed by Credit Suisse and GE as our founding investors back in 2006. 683 professionals today in more than 20 countries. We have more than 900 LP relationships.
As a part of the transaction, BlackRock transferred around $50 billion of AUM and 200 professionals into the platform, to the combined platform. The combined platform is now called GIP, a part of BlackRock. We have a wide range of products, as you can see on the slide here. They are all differentiated. They are differentiated by scale, by geography, by risk and return. They are all catering to the needs of our clients. The biggest piece of our AUM is our global equity business. That is about $111 billion. That is where the flagship fund sits. We have three strategies there: the GIP flagship strategy, the mid-market strategy, and the core strategy. GIP's flagship strategy is now in its fifth vintage. We had a target of $25 billion to achieve. I am pleased to say that we have managed to get to $25 billion for our fifth vintage.
Mid-market fund is already fourth vintage, and will soon be into its fifth vintage. We also have a few specialized and thematic by sector and by geography funds: the AI partnership, which I will touch upon later on, energy transition, renewables, a decarbonization joint venture with Temasek that invests in early-stage energy transition companies. We have a few single asset continuation funds. These are for some of our best assets. 50% of Gatwick that we own, 50% of Edinburgh are in separate continuation funds. We also have two other funds. One is TiL, which is our partnership with MSC, a ports platform that we have, and also Italo, a high-speed rail business in Italy. Geographic focus. We have a few sub. We have a few geographic sector funds: Australia, emerging markets, and the Middle East. Our credit business is around $28 billion, both investment-grade credit and non-investment-grade credit.
A substantial portion of this credit business came from BlackRock. We have a solutions business that does multi-manager portfolios, secondaries, and primaries. That is about $9 billion. Now, the solutions business were investors in GIP's first fund way back in 2006. They have been investors in GIP's subsequent vintages all along the way. I am sure a part of the performance of GIP has helped the solutions business to raise the $9 billion they have. What is the beauty of the combination? Very limited overlap between what BlackRock had in infrastructure and what we had in GIP. We did not have a mid-market franchise. We did not have a solutions business. We did not have an investment-grade credit business. We did not have an energy transition business from a decarbonization, early-stage growth vehicle point of view. All of those enhance our platform tremendously.
When you look at the overlap of the LPs between what GIP had and BlackRock infra had, that was less than 5%, less than 5% overlap between our LP base. Today, we are fully integrated. We operate as one platform. We're all sitting together in one location, in this building in Hudson Yards in New York. We are sharing resources. We are sharing origination ideas. We're sharing our business improvement team. We're sharing our risk processes. Let me start by explaining what our definition, and there are many different definitions in the market, of infrastructure is. Our definition is very, very simple: large, real, difficult to replicate, critical infrastructure with extremely high barriers to entry. Think about big airports, big ports, big LNG facilities, big offshore wind farms. These are long-lived assets, 50+ years with fair regulation and fully contracted revenues.
Now, over the last 19 years, as the asset class has grown, people have stretched the definition of infrastructure, added risk onto it. We have not done that. Since the beginning, our sector focus has remained the same. Our target returns have remained the same. Our investment approach has remained the same. We have not had a sector drift. We only focus on four sectors, which are energy, transportation, digital, and water and waste. Even in those four sectors, we target few subsectors, not every subsector in all those. Let me touch upon each of those. Energy is our biggest business. It is our biggest sector. What do we do? We invest in midstream companies, LNG, power generation, renewables. We do not take direct commodity risk. We are a global top 10 player in the renewable business today.
Our portfolio of renewables, where we've invested more than $20 billion of equity, is about 18 GW in operation, operates all over the world. We have a platform and a development pipeline of more than 180 GW. You'll see some logos here. Atlas is our leading Latin American platform. Clearway is a leading US renewable platform. Vena Energy is a leading Pan-Asian renewable platform. RG LNG, very exciting. It's an 18 million ton facility that we are currently building in Brownsville and Texas and soon to be 30 million tons of capacity. Now, transportation is our second sector. We are only focused on three subsectors: airports, ports, and rail. Those are the three subsectors we focus on. There is no other manager out there who has got a better track record in airport space. We have, to date, invested in six different airports.
London City Airport, we made 4.5 times our money multiple. Gatwick, we made eight times money multiple. Edinburgh, we made six times money multiple. Now, we still own Edinburgh and Gatwick through the continuation fund that I talked about. We are the largest shareholder in Sydney Airport. Very recently, we took the entire Malaysian airport system private, working with two sovereign wealth funds. That is not only KL, which is the capital city, but there are 38 other airports in the Malaysian airport system. Ports, a big area that we have invested in. We have been owners of Port of Brisbane, large shareholder in Port of Melbourne, Peel Port. We have a joint venture with the largest container shipping business in the world called MSC, the ports business called TiL. That is the platform through which we have recently announced the Hutchinson transaction.
Digital, one of our newer sectors over the last seven or eight years, focused again on three subsectors: telecom towers, fiber, and data centers. In the tower space, we have a joint venture with Vodafone with more than 30,000 towers in Europe. Data center, we have a business called CyrusOne. That is the America's third largest data center company. And CyrusOne was pretty instrumental when I come on to the AI partnership. I'll refer to it back again. In fiber, we have a joint venture with AT&T called Gigapower. The fourth sector is water and waste, smallest of our sectors, but we have a few marquee assets: Suez, a global number two in water and waste. Then we have the Lanes Group and e360. The message you have on this slide from me is that we focus on very few sectors. We have deep industry knowledge.
We have phenomenal corporate relationships. We get proprietary origination, and we will add operational value add. I'll come on to that in a minute. Let me set the scene on the private infrastructure landscape. We're entering the golden age. Capital needs over the next two decades are going to be double of what was spent over the last two decades. That's the scale of the opportunities. That's driven by four key things: energy transition, what's happening in the digital space, rewiring of supply chains, and quite often neglected, but true, the creaking and the upgradation of old infrastructure that is absolutely essential. Energy transition, it is here to stay. It is irreversible. Now, we can debate whether the world's going to get to its 2050 net zero targets. Are they going to beat it, or are we going to get close to it?
The fact is, money is being spent in this space, and that is going to continue to be the case. The numbers thrown around here are big. $100 trillion of capital will be spent in energy transition. We think roughly about $40 trillion of that will be in infrastructure associated with the energy transition. Some of it will be repurposed infrastructure. Quite a lot of it will be new-build infrastructure. Now, digital, you all go through different places, and you want mobile phones. Even if you're hiking in the mountains, you want your cell phone to work. When you're outside somewhere, you want to stream football. You want to get it very fast. We talk about cloud computing. That is creating a tremendous amount of opportunity for new-build infrastructure. Just on the data center alone, the existing installed capacity of data centers globally is about 60 GW.
By 2030, that's going to be 220 GW. A large part of that is going to be driven by cloud computing. People think it's AI. AI is yet to come a big piece of that. A large piece of that is cloud computing. If you think about that, that's in the next five years. That's $1.5 trillion of capital that is needed just in the data center space. That does not include the chips and everything else that goes in. This is core and shell. Supply chain rewiring. Now, that started with COVID. It sort of exasperated. It sort of accelerated by Russia's invasion into Ukraine and that concerns that created with security of supply, geopolitical tensions, U.S.-China, and now with the tariffs. Factories are moving. You call it French shoring. You call it new shoring. Factories are moving from one place to another.
That requires a lot of capital to go in. And then upgradation of infrastructure. I'm sure many of you have been through airports and road systems in the U.S. They need a lot of work. They need a lot of upgradation. I just pulled up a chart here. And this is a chart at the bottom right from the American Society of Civil Engineers. They grade once every four years the state of American infrastructure. And look at the grades they've given the U.S. infrastructure: C+, D+, D+, C. Now, if you have children and they brought these grades at home, I know I'm sure what the conversation is going to be. The idea is the opportunity is huge. That's the point I want to make. Who's going to fund this? What's the traditional source of funding infrastructure? It's governments. It's multilateral agencies.
Now, if you're not a government in the Middle East, then you have very great difficulty in funding infrastructure today or big capital projects. The reason for that is simple. Pretty much every government around the world, OECD, take over the U.S., talk about the U.K., Eurozone, Japan, is either close to 100% or more than 100% debt to GDP ratio. They are not in a position to fund this. What's the second source? Corporates. Corporates will play a big part, definitely. Corporate balance sheets are stretched. As you heard, if you think interest rates are going to rise, that's going to create that funding constraint is going to grow more and more from a corporate perspective. Capital markets are definitely going to be part of the solution, but they're not going to fill the gap. The gap is about $15 trillion.
That could be $20 trillion. The only way place that gets filled is private capital. That's where we come in. That's where we fit. This is long-dated infrastructure needs to be funded in the long-dated market, long-dated private credit, long-dated private infrastructure. That's the gap that we're going to fill. Let me just talk a little bit about GIP and what differentiates us. What's our secret sauce? I think there are five things that differentiate us massively. The first is proprietary origination. We are control-oriented investors. We take control positions in the equity. I'm just going to use numbers which are flagship fund-oriented. Obviously, we have equity funds, specialized funds that I talked about. These numbers do not include that. Just by flagship fund, to date, we've done 53 equity transactions. Out of the 53 transactions, 30 of them are corporate joint ventures.
This is what's a corporate joint venture? We go to a company and say, look, you have this embedded piece of infrastructure that's sitting inside your company. That's a cost center today. All you need is access to that. We're going to come in. We're going to buy half of it. You retain 50% of the business. We will work with you. We'll get our business improvement team in. We'll improve the operations of the asset. By the way, we will get incremental growth by getting third party in. As we create value in the asset, you will get your pro rata share of the value. We have released a significant piece of capital to you. That mantra has worked very, very well for us.
The beauty of the BlackRock combination is our access now at the senior-most level to all corporates has stepped up massively. Just to give you a sense that this is working, we have done four different transactions with Total. We have done four different transactions with Orsted. We have done three different transactions with MSC. We have done two different transactions with ICE. That list goes on and on and on. The second is business improvement. Now, we are a pioneer in operating assets in the infrastructure space. I want to take you back to Fund I. The reason I want to take you back to Fund I is simple. When we were raising capital for Fund I, we were saying to investors, infrastructure assets are undermanaged. They have historically been owned by utilities or corporates or governments.
They have not been put through the rigor of an industrial company. If we can operate assets better, we will generate incremental return. Now, most others were saying infrastructure is boring. You buy it. It's a bond. You will get a yield. Forget it. Now, life's not turned out to be that way. With that mantra, we started a business improvement team. That's about 50 people today. We have a proven playbook. We use tools like Six Sigma, Kaizen, Lean. The business improvement team of GIP works with the deal team while we're doing due diligence. As soon as we acquire the asset, prepare the 100 day plan, continue to work with the asset as we grow the asset, and help us in thinking through the business plan when we sell the asset from as to how we're going to position the asset in the future.
Let me give you a couple of examples. What is an airport? An airport's a place where you move people, you move bags, and you turn around planes. Now, if I can move people faster and if I can move planes, turn around planes quicker, and if I can get you through your bags in time, my customers are happy. Who's a customer of an airport? People like you and the airlines. If you're happy, you're going to spend money. If airlines are happy, they're going to put routes. As soon as you do that, we get more revenue as an airport owner. That is the nature of what we've done in the business improvement team. The third is risk. We have an independent risk function completely dissociated with the deal. Look at every deal objectively. We focus on core and core plus. We hedge everything.
We think about downsides. We think a little bit like credit. What is the downside? How do we make sure we never lose equity? The proof of this is simple. When COVID happened, we had airports that had zero traffic. We had high-speed rail, which had zero traffic. We had oil and gas pipelines. Oil went down to zero. We did not put a single penny of equity in any of our deals. That is the risk approach that we have. Sustainability, we think about every asset from a sustainability point of view. We have an idea of giving every asset a net zero target. Sometimes it is 2030, sometimes 2040, sometimes 2050. The reason we do that is we track, we work with the management team, we report it to our LPs.
Most importantly, when we exit an asset, we want that asset to be very well positioned so that the new buyer can take that forward. The last is a proven track record and exit. This is a huge differentiator for us. Across the flagship deals, out of the 53 deals I talked about, we have exited 28 deals. We've invested $48 billion. We have returned $56 billion. There aren't that many investors in infrastructure who have invested $56 billion. We have returned $56 billion. As I go on the road, we consistently hear that private equity hasn't returned capital. Now, we at GIP, I don't think we got that memo. The reason we didn't get that memo is since COVID, we have returned $28 billion back to our LP. That's the big differentiator. Now, let me just talk about the BlackRock-GIP combination.
We got many approaches to partner up with GIP along the way. We turned all of them down. When BlackRock approached us, Larry and Martin came to talk to us, we took it seriously. We took it seriously for many reasons. One, the power of the BlackRock franchise. Second, the complementary fit of the organizations. The third, the potential and the tremendous growth opportunity for the platform under the BlackRock ownership. Most importantly, and Scott you touched on this, the culture, the founder-led culture. That is exactly how we think about it. From our ability to get things done, we thought about it the same way. We actually had a dinner. We had a dinner after we agreed commercial terms before we made the announcement. It was somewhere in the fourth floor of Hudson Yards. We were meant to be there for two hours.
We ended up spending three and a half hours at dinner. We have a WhatsApp group among the founder. As we all left back, there were messages flying around, and we all said, this was amazing. The cultural fit is phenomenal. We have not looked back since that day. Let me just give you three examples of areas where the combination adds tremendous and enhances our capabilities. Origination, this is what I talked about, proprietary origination with corporates. Now, BlackRock being the largest shareholder or the largest bondholder of many of the biggest corporations in the world, we now have access to the senior-most decision-makers in big companies. That enables proprietary origination. Institutional relationship, wealth channel, again, very limited overlap. There is a whole set of institutional relationship. We hardly had a wealth channel at GIP.
Our ability to tap into new investors from a capital-raising perspective is very, very powerful. Technology, Aladdin, eFront, Preqin, they will all be value-added to us. The insights we will get from BlackRock Institutional Investment Institute will make us better investors. That is the power of the combination. I want to give you a case study of how this combination is coming in practice. It is actually one of the most exciting things happening at BlackRock. That is the AI partnership. I think it is fair to say that this would not have happened if it was only BlackRock. I am pretty much sure that GIP probably may not even have been in the room when these conversations were going on. What are we trying to achieve? We are trying to capture a generational investment opportunity in artificial intelligence and digital infrastructure linked with AI.
Our goal is simple. We are trying to create a funding mechanism to tackle the significant needs that exist. I talked about the $1.5 trillion over the next five years. Think about what that number is going forward. The industry needs a solution. In that context, as we went around with BlackRock's connections and speaking to the biggest hyperscalers at the highest level of each organization, it became very, very clear that a combination of what GIP could bring to the table, what BlackRock could bring to the table, what the hyperscalers could bring to the table will create an industry-wide solution. You have seen the announcement we made in September. Since then, we have expanded the partnership. We now have eight partners in the partnership: BlackRock, GIP, MGX from Abu Dhabi, a long-term patient capital from the U.A.E., big investors in the technology space.
We know about Microsoft, NVIDIA, and xAI. Very recently, last week, the KIA, Kuwait Investment Authority, announced that they'll be a part of the partnership. I'm pleased to say, as of today, that Temasek has agreed to be a part of the partnership as well. KIA and Temasek were not part of the original group. They are going to be big investors in the fund going forward. In addition to the members of the partnership, we have a few technical collaborators on the power and the technology side. GE Vernova, NextEra, and Cisco will provide a lot of information to us and be collaborative partners on those. What are we trying to do? We're trying to raise a $30 billion pool of capital, equity capital, in an open-ended format.
We'll unlock about a $100 billion pool of capital because with the debt, that is the power of what we will have. Now, we are currently working on the structure and the terms of this. Stay tuned. More to come on this. Let's talk about the future. We are in a strong position to capitalize on all the demands that I talked about. Look at the chart on the bottom left. That is the fundraising track record of the flagship fund of GIP. We started at $5.6 billion for Fund I. Our target for GIP V was $25 billion. We've reached that target of $25 billion. Now, over the next 24 months, we have more opportunities: the AI partnership that I talked about, middle market, energy transition, emerging market, Decarb Partners, credit both on the investment-grade side and non-investment-grade side in infrastructure and solution. Our strategies are working.
Our strategies are performing. We have a phenomenal track record. The combination with BlackRock positions us really, really well for the future. Let me conclude. You have heard this several times today. Everything that we do at BlackRock is about clients. What we are trying to do is connect our clients with the best investment product that we have. I think Larry said it. Infrastructure is one of the most exciting investment opportunities ahead. Three key final messages or four key final messages from me. We have the absolute ambition to be the world's premier infrastructure investing platform today, tomorrow, day after tomorrow, and way beyond that as well. We will continue to play a significant role in funding, playing the funding gap that exists. We will continue to focus on performance, deliver operational value add, and we will solidify BlackRock's leadership position in the private markets.
Now, as we embark on the golden age of infrastructure, we will capitalize on these tailwinds both for our asset class and for private markets overall. I just want to end by saying a big thank you to all of you. It's been a great pleasure to be here. I believe it's now time for a break. Go ahead, stretch your legs, get a cup of coffee, and see you back in 15 minutes. Thank you.
Please take your seats. Our program will begin in two minutes. Please take your seats. Our program will begin momentarily. Please welcome back to the stage, Caroline Rodda.
All right, thanks, everyone. After this next session, or next few presentations, I should say, we're going to go straight into the Q&A. With that, I'd like to introduce Rachel Lord, our Head of International.
Morning, everyone. Thank you.
Thank you for being here. Thank you for staying here. I know we're running through a lot of material today. In this session, I'm going to discuss our international businesses outside of the U.S. I will walk through some examples of strategic initiatives that we're taking to drive outsized growth over the long term. Our business outside America has grown rapidly since our last Investor Day in 2023. Today, we manage roughly $4.4 trillion of assets for our clients based outside America, which makes us the largest international asset manager by quite some margin. It also marks significant growth since 2023, when we reported $3.3 trillion of international AUM. In revenues, this part of our business delivered $9.5 billion of revenues in 2024, recording 15% year-over-year growth.
For the 12 months to end Q1 2025, the average organic growth rate is 8%, and our average organic growth base fee growth rate is 5%. Now, given I'm going to talk you through how we build some of these businesses internationally over the long term, I actually went back and had a look at our 2014 Investor Day presentation, which was the first time we actually disclosed our non-U.S. revenues and AUM. For those of you who were covering us back then, you would, of course, remember that in 2014, we managed $1.7 trillion of non-U.S. client assets and generated $3.5 billion of revenues. You can probably all do the maths. That means in the last 11 years, we've added $2.7 trillion of AUM and $6 billion of revenues, which gives the non-U.S. businesses a 10% compound annual growth rate over the last 11 years.
We have done that by starting with our global strategy, what Martin took you through earlier today and previous iterations of this. We figure out how and where to deliver that global strategy hyper-locally, right the way to the end client in the countries in which we operate, in a way that responds to client needs in those countries, while always leveraging our global platform and scale. Today, we have offices in 50 countries around the world. These are led by a huge group of seasoned country managers with deep expertise in their local markets, backed by a series of product platforms, investors, sales teams, corporate relationships, policy experts, and thought leaders. This strength delivered locally puts us in a prime position in times like this to capture outsized flows in periods where capital reallocations occur across countries or investment segments.
One of the key drivers of growth in building this unparalleled global business has involved developing long-term strategic initiatives to play into what we see as emerging and persistent trends in our industry, in markets, in client segments, and in the people and places that we, as a team, believe will deliver those outsized returns that we're looking for. I joined the firm just over 11 years ago to do just that, with a mission to catalyze growth in the somewhat dormant ETF market in Europe at the time. You heard from Jane and the team earlier today how that ETF market in Europe has now grown by over 600% in that period, with much more room for growth in the future.
You'll also have heard that she's been much more successful at me at growing this because it took me ages to get to $500 million and hardly any time to get to $1 trillion. We consistently look to increase our presence in markets that are buoyed by positive long-term trends, such as changing demographics, emerging middle classes, evolving regulatory environments, changes in customer preferences, and new business model developments in wealth or pensions markets. We train and hire the most brilliant minds in the industry to help us develop products and solutions to meet those emerging client needs. We also use our technological prowess and strategic partnerships to improve the experience of investors, distributors, and other participants across the capital markets. To try and bring this to life, I'm going to share with you three of the most interesting strategic initiatives we're pursuing today around the world.
Firstly, I'm going to talk about India, where our business that we're growing will tap into the rapidly growing middle classes. Secondly, the Middle East, where we're investing into long-term structural changes within the GCC. Finally, across the developed markets in retirement, driven by aging populations and some really interesting regulatory changes that are creating whole new pension markets. We believe that each of these will deliver outsized growth for the firm over the next decade. I'll start with India, where actually Goldie and I are leading this together, which has been amazing fun for us both. We're partnering with Jio Financial Services to launch a three-part joint venture called Jio BlackRock. This joint venture is going to include an asset manager, a wealth manager, and a brokerage.
With 1.4 billion people, a median age of 30 years, an economy that is growing at 6.5% annually, and a national digital infrastructure that is ahead of nearly everywhere else in the world, India is a remarkable country which presents an incredible opportunity. Today, India remains a nation of savers and not investors. The asset management market is currently very small. There is only around $1.3 trillion AUM managed onshore. Of that, only about $800 billion is in mutual funds, which are invested in by only 54 million investors out of that population of 1.4 billion people. 90% of existing wealth today sits in unmanaged or physical assets. We believe both the asset management and the wealth management markets will grow materially over the next five years. Jio BlackRock was created to accelerate and participate in the growth of the domestic investment industry.
We agreed our JV in 2023. We received our mutual fund license a few weeks ago. We received our investment advisory license a few days ago. Together with JFS, we have designed a proposition which we believe will capture market share, will grow the asset management and the wealth management markets, and will expand the capital markets. Through Jio BlackRock, Indian investors will be able to use portfolios with personalized asset allocations. They will be able to invest in systematic strategies for the first time. They will be able to understand their portfolios through analytics that are calculated by Aladdin, which marks the first time we have deployed Aladdin into India. Our partner, JFS, and the broader Reliance Jio ecosystem bring unparalleled customer reach to this joint venture. Their existing businesses reach hundreds and hundreds of millions of Indians today.
By leveraging their deep expertise in understanding the consumer and in digital marketing, their embedded brand, and their understanding of local best practices, they're able to reduce our customer acquisition cost to less than half that of our competition. Our primary tool for acquiring and engaging with customers will be the Jio BlackRock app. This will live directly within the broader My Jio Super app, meaning that our clients will be able to review their investments in the same place where they manage every aspect of their personal lives. Our ambition is to reach 10s of millions of customers in the wealth space by 2030. Our direct-to-consumer digital-first approach will significantly reduce the overall cost of investing for Indian savers by removing many layers of friction costs that people are dealing with today.
In parallel to what we're doing onshore, outside India, we have focused on becoming the market leaders around the world in investing into the country. Over the last two years, we have more than doubled the AUM of Indian assets that we manage for global clients from $56 billion in 2023 to $115 billion today. By 2030, we expect that India will be a significant revenue driver for BlackRock across our Jio BlackRock businesses and for that to continue significantly in the years to come. If we turn to the Middle East, we've been serving institutional clients here for decades. Some of our oldest relationships with very large investors sit in the Middle East. We have done that by helping them to deploy capital into global markets.
Over the last two years, we have taken more ambitious steps to increase our local presence and to partner with local companies and regulators to support their own growth objectives for the region. The Middle East is benefiting from significant macro and geopolitical tailwinds today, as well as governments who have ambitious and long-term development plans for their nations. They are focused on driving long-term economic growth, building the businesses of the future, and creating dynamic and competitive economies with a highly productive human capital strategy. The attractiveness of the region for global talent is also changing rapidly, creating new opportunities in wealth segments as well as in investing. In Saudi Arabia, we signed an agreement with the PIF in 2024 to establish a Riyadh-based investment platform.
This is anchored by an initial investment from the PIF, but it aims to support global investment into the Kingdom and to enhance the local asset management industry. In addition, we're helping the local government develop a mortgage-backed securities market, aiming to improve interest rates offered to borrowers and boost homeownership across the 34 million people who live there. Up the road in the U.A.E., as you've heard, we partnered with MGX to launch the AI Infrastructure Partnership. This supports the U.A.E.'s ambitions to become one of the world's top AI leaders and will mobilize up to $100 billion in total investment for AI data centers and energy solutions to be deployed globally and also in the U.A.E. Across the Middle East, we're driving growth by launching bespoke products which meet local client needs and support the real economy.
Our BlackRock Middle East Infrastructure Fund surpassed its initial fundraising target with $1.2 billion for its final close in April of this year. This fund met both local and global demand for infrastructure investments in the region. In the wealth space, we formed a partnership with NBD, which we signed in March of this year, which will offer wealth clients in the U.A.E. opportunities to access alternative asset classes focused on private credit and multi-alternatives. All of this is supported by our deep and growing local presence. We have offices in Dubai, Abu Dhabi, Riyadh, and Doha, and we have plans to launch in Kuwait City later this year. We also benefit from outstanding Saudi, Emirati, and Kuwaiti client leadership talent. We have built out our Aladdin expertise, our investment teams, and our operations and corporate functions locally in the region.
Away from local clients, we're also now locating senior personnel in Abu Dhabi who have international responsibilities, taking advantage of the attractiveness of the destination for our people and its time zone sitting between east and west. Our ambition is that our continued investment into the region will drive upwards of 15% CAGR for BlackRock over the next five years and position us as the leading global asset manager operating locally across public and private markets there. The third and final strategic initiative I'll go through is retirement, which doesn't sound very new. However, retirement outside of America is undergoing some profound transformation, especially in Europe and especially in the DC, the defined contribution space. This is going to be increasingly important to everything you've heard about today because the changes underway are going to drive significant allocations into private markets.
Now, retirement is our core business, with more than half of the money that we manage today being retirement money. As demographic shifts and financial pressures drive governments and corporates to rethink their retirement plans and their retirement systems, those reforms and evolving client needs are putting significant money in motion. Europe is the second largest pension market outside of the U.S., with around $12 trillion in assets forecast to reach $20 trillion by 2030. Most of this growth is going to come in DC pension pots. DB is over in most places. This is going to represent $6 trillion of assets but will grow to $14 trillion by 2030. The ratio of DC to DB is finally accelerating. Traditionally, DC assets were very heavily skewed to index assets, with a focus on low-cost and immediate daily liquidity in almost every single DC scheme that existed.
The future of DC investing looks different. Private market allocations are going to grow significantly in this space. The U.K. is the largest DC market. It has grown rapidly since it adopted auto-enrollment in 2012. We expect this to continue to grow over the next five years. At the moment, having gone through the pensions review in the U.K., current reforms are now targeting consolidation, scale, and allocations to private markets. The U.K. government explicitly aims to increase private market allocations from an average around 3.5% today to 10% by 2030. We manage around 30% of all U.K. DC pension assets today. We are working now alongside our clients to help improve retirement outcomes as these reforms start to kick in over the next year.
Another big shift is happening in the Netherlands, where the Future of Pensions Act from 2023, which mandated the transition of almost $2 trillion of pension assets from defined benefit to a hybrid form of defined contribution, needs that to be completed by January of 2028. The transition requires rapid business model transformation, as a result of which captive assets previously managed in-house are increasingly being tendered as OCIO mandates, where larger external managers can leverage their scale to improve the outcomes for members. You have heard earlier that we were appointed to manage the Dutch, Shell's Dutch pension scheme last year. That is in this nature. Again, these new types of DC schemes are going to have to maintain and build a high allocation to private markets assets. They are not just going to be low-cost liquid equities and bonds.
In addition to government reforms, transformation in pensions is driven by companies themselves who are creating innovative solutions to meet the pensions conundrum. One example, we mentioned it briefly earlier today, is Royal Mail, who launched the first collective defined contribution pension plan in the U.K. and selected us to act as their OCIO provider. This new type of pension plan allows for DC contributions, but it introduces investment and longevity risk sharing across members. This also enables investing in high-risk assets to drive long-term growth. We expect these types of pension schemes, these collective DC pension schemes, to end up with between 20% and 30% allocation to private markets. Final example of changes in Australia, which has had for the longest time one of the most advanced superannuation schemes. Over the years, all of that money has been building up to save for retirement.
Now we have a generation beginning to enter retirement. What has not been built yet is a set of decumulation products and income products in retirement. We have seen this problem before in the U.S., where we launched LifePath Paycheck last year. We are working on a bunch of strategies right now to tap into decumulation income products in Australia. That includes a strategic alliance with Generation Life, a life insurer specializing in retirement, who are bringing us local expertise to help co-develop decumulation solutions. Retirement is a complex, heterogeneous market with dozens of regulatory regimes at different stages of evolution. The need for transformation is everywhere. BlackRock's abilities to bring learnings from one country and port them to another, to bring solutions from one market and take them to another market is unique.
It puts us in an incredible position to capture what we see as significant money in motion while also improving the outcomes for savers and retirees. To close, our approach to identifying trends and taking comprehensive action that will create new ways for us to grow markets and help clients is consistent, whatever those changes might be. The significant growth we've seen across our international business is intentional and repeatable, which is why we moved from $3.5 billion of revenues 11 years ago to $9.5 billion revenues today. There are many initiatives underway that I couldn't touch on today. I could have talked for the whole time, but Larry told me I was boring, so he gave me 15 minutes.
There is a lot going on in this space where we take everything that you've heard about from all of our partners earlier this morning around technology, investment strategies, private markets, ETFs, everything else you've heard of. We blend them together, and we deliver them for clients in all of the countries we operate in around the world. Okay, I'm going to pass over to Martin now. He's going to bring us home.
Okay. Thanks, Rachel. The picture that my colleagues paint of BlackRock in 2030, it's a remarkable one. I think you can see from today's sessions that we're just in execution mode, just taking lots of decisive action to progress our 2030 plan. I'm here to close you out with why invest in BlackRock and why invest now. We've built a premier investments and technology platform across public and private markets.
We're an earnings compounder with a portfolio of structural growth businesses, steady and recurring cash flows, a capital-light balance sheet, and low leverage. We're evolving our revenue mix to reach an over 30% contribution from private markets and technology platforms, commanding higher valuation multiples. Our 2030 strategy aims to double the operating income of the firm. Even at today's multiple, that implies more than a doubling of BlackRock's market cap. Let's examine how our strategy drives value for BlackRock shareholders, why BlackRock, and why now. Our shareholder value framework has been consistent. First launched in 2013, we've used it to guide thousands of institutions and individual owners of BlackRock stock as to how their investment builds in value. We focus on generating organic growth, driving operating leverage, and returning capital to our shareholders. Although our framework hasn't changed, I'll put our 2030 strategy in context.
We've built a platform that we believe enables us to achieve or exceed 5% organic base fee growth and 45% operating margin goals over a market cycle. Together with our consistent and predictable capital management policy, we believe we'll continue to deliver attractive returns to BlackRock shareholders. In the last five years, we've executed on each element of our shareholder framework. On average, we've generated 5% organic asset and 5% organic base fee growth, meeting our target across market cycles. In some markets, we'll exceed this target. Even during significant dislocation in 2022, we generated positive organic base fee growth. We reached our 5% growth target without significant M&A. We see our recent combinations with GIP, Preqin, and soon HPS as catalysts to outperform our historical organic growth trends. We continue to drive operating leverage enabled by our financial rubric and our scale.
Our scale enablement levers are vast, and they're growing. They benefit from our size, both in terms of AUM and the large number of client accounts. Some examples of our scale levers include technology and automation, the footprinting of our business, strategic partnerships across distribution and data, and order aggregation to reduce costs or secure better pricing. That said, the markets, or beta, beta is our highest margin item both in rising markets and in falling markets. Our results in 2023 reflect the impact of historic market declines from 2022. As markets rebounded from their lows, we expanded our adjusted margin by 280 basis points in 2024. Finally, we've delivered on a predictable capital management policy. We see dividends and share repurchases as twin engines of shareholder outperformance. Over the last five years, our dividend has grown at a compounded annual growth rate of 9%.
We also returned $7.7 billion to shareholders through open market repurchases of BlackRock stock at an average price of $661 per share. BlackRock's an earnings compounder. In a constructive beta environment, execution on our framework should result in consistent increases in operating cash flow and double-digit EPS growth. We know markets will fluctuate, but our focus is on delivering the BlackRock platform to clients. Delivering for clients has fueled consistent organic asset growth even in tough markets. Over the last 10 years, we've generated nearly $7 trillion of AUM growth. Every year, BlackRock won client share of mind and share of wallet. Over the last five years, we've seen historic highs. We've seen historic declines in markets and changes in client preferences all along the way. The diversification of our investment and technology platform is a distinct competitive advantage. We're not reliant on any one strategy or asset class.
As you can see, all of our businesses have delivered organic base fee growth over the last five years. That said, the BlackRock of the next five years to 2030 is different than the past. With the HPS close, BlackRock's private markets and alternatives platform is approximately $600 billion. We have even better and broader opportunities to serve clients. We have seen early proof points post the GIP close with 5% or higher organic base fee growth in each of the last three quarters. With a larger private markets franchise, we see the BlackRock of 2030 powering higher organic growth with positive leverage to base fee revenue and average fee rates. We have always said the average fee rate is an output driven by factors that we can and cannot control. We understand fee rates are important factors in modeling BlackRock's future performance.
We can influence organic growth by having the right capabilities and products, generating strong investment performance, and executing on our distribution. We can't control movements in the markets or broad changes in client preferences, like stocks over bonds or U.S. relative to non-U.S. markets. Our AUM base is global. It's not concentrated, for example, in U.S. stocks. In a period led by relative outperformance of U.S. stocks, beta has been a headwind to the fee rate. Non-U.S. equity markets, which carry relatively higher fee rates, have underperformed U.S. equity markets. Looking ahead, this dynamic can also be a tailwind to our fee rate if non-U.S. equity markets were to consistently outperform. More recently, we've seen client demand for newer and higher value-add capabilities, such as private markets, systematic active strategies, Active ETFs, as well as cryptocurrency ETPs. This growth has resulted in higher fee rates on new flows.
These fee rates have been on a steady upward trajectory in recent years and are seven times higher than they were in 2023. As we grow our private markets platform and these higher value-add capabilities to 2030, assuming neutral impact from beta, execution of our organic growth strategy should support higher effective fee rates. From 2015 until the end of 2022, we saw over $2.5 trillion of net inflows. Our 2022 margin reflects primarily historic market declines in both equities and bonds and foreign exchange headwinds. 2022's margin also reflected ongoing strategic investments in technology to generate long-term operating leverage. The learned experiences of 2022 helped evolve our business investments and our approach to managing operating expenses. In 2023, we systematized our budgeting approach into a simple three-part rubric, aligning controllable expenses with organic growth, variabilizing more expenses, and driving fixed cost scale. This approach has been successful.
In the last two years, we generated over $900 billion in net inflows with 14% revenue growth and 170 basis points in margin expansion. The last two years of margin expansion was powered by execution on each component of this rubric. We've continued to invest in growth and scale. We've paced our investments to match organic revenue growth. We endeavored to power more fixed cost scale through technology and by footprinting scale generation activities in our innovation hubs. In the last two years, our AUM grew by $3 trillion, and our headcount growth, excluding M&A, was under 5% entirely in our iH ubs. We'll look to find more opportunities to variabilize expenses. Variable expenses make up approximately one-third of our revenues. The growth of these expenses reflects an increase in revenues or sales. Variabilization embeds more natural resilience in our expense base, buffering margins in volatile downward markets.
Our rubric allows us to keep investing against organic growth and efficiency objectives. Organic growth rates are the throttle. Greater variabilization is the shock absorber in tough markets, and driving fixed cost scale through technology serves as a long-term value creation lever. We believe this approach should yield a better upside capture for growth of operating income and margin in good markets and a better downside defense of both through periodic market declines. Ultimately, with the long-term growth of markets as our structural tailwind, our approach should deliver more beta to the bottom line for operating income growth and the benefits of scale to our clients and shareholders. Our capital management strategy remains consistent. First, we invest in our business, either to scale important growth initiatives or to drive operational efficiency, and then return cash to our shareholders.
Our priority remains to invest organically, but we also use inorganic investments to expand our capabilities and growth opportunities. BlackRock's history is rooted in successful M&A and the ability to realize synergies through sound integrations of acquired firms. Many of the platforms you've heard about today, ETFs, systematic investments, private markets, trace back to our M&A history. Our main focus is to integrate and realize the synergies of our combinations with GIP, Preqin, and HPS and deliver a great integration experience for clients and employees. The GIP, Preqin, and HPS transactions, they round out our near to intermediate term priorities for larger scale M&A. Historically, we've also executed smaller acquisitions in order to bolt on capabilities. For a period, these types of transactions will be our main inorganic activity.
Our inorganic growth interests are to broaden our technology capabilities, expand our global distribution reach, and continue scaling our private markets franchise. In certain circumstances, we will also pursue strategic minority investments. The primary purpose of these minority investments is to drive incremental revenue for BlackRock products, to incubate future capabilities, or to otherwise create value or convenience for our clients. Our minority investments have added AUM and revenues from new ecosystems like stablecoins and tokenized funds. They've enabled distribution or creation of wealth portfolio products, including models. Through our recently announced investment in Viridium, we'll enhance our reach into insurance allocations to private markets. Over the last five years, after investing for future growth, we've returned an average of nearly 80% of our earnings to shareholders, including $4.7 billion last year. We recognize dividend income is an important part of many of your portfolios.
We continue to target a dividend payout ratio in the 40%-50% range. We've steadily increased our dividend since its start in 2003. Over this time, our dividend per share has grown at a compound annual growth rate of 15%. Over the last five years, we've paid on average 50% of our GAAP net income in dividends. Our dividend payout ratio target is intended to ensure that the growth in operating and net income under our 2030 strategy will translate into commensurate dividend growth at high single to low double-digit rates. To avoid payout ratio impact from the non-cash amortization of acquisition-related intangibles, we'll adjust this amortization when calibrating our dividend to the payout target. Share repurchases are another key element of our capital management strategy. After investing our cash to grow the business and satisfying our commitment to the dividend, we'll return capital to shareholders through share repurchases.
Share repurchases, therefore, are an output of rather than an input to our capital management policy. Since 2013, we've repurchased over $16 billion of shares at an average price of $467 per share. This has reduced our share count by 10%. Repurchases more than offset share issuances associated with acquisitions and deferred compensation plans. Importantly, we also generated an over 15% compounded annual return for our shareholders. I'll conclude where I started the whole day with our 2030 ambitions that I think answer why BlackRock and why now. We aim to grow our revenue to over $35 billion and to double both our operating income and market cap. We're building a platform that can achieve a combination of premium organic growth and premium operating margin.
We're creating a platform that's powered by structural growth businesses linked to the long-term growth of the capital markets and fast-growing client and product segments. We're shifting our business mix to meet client trends across whole portfolios, resulting in longer duration, recurring revenues at higher fee rates with less sensitivity to the ups and downs of the markets. We're building more resilient growth and financial outcomes for clients and for BlackRock, especially in market downturns and lower industry growth environments. We believe this strategy should result in multiple expansion on sustained higher growth and increase in longer duration asset and revenues and more predictable and resilient financial outcomes. BlackRock has a history of making bold moves. We decided to sell our proprietary Aladdin technology to third parties, even competitors. Now it earns over $1.6 billion as a revenue center.
As a fixed income manager, we added equities, multi-asset, and alternatives with MLIM. We birthed the industry's first whole portfolio firm when we combined active management and ETFs with BGI and iShares. These moves all led to clients doing more with BlackRock. Today, we're continuing the bold moves of our history. We're first. We're ushering in a new business model that integrates asset management and financial technology across public and private markets. There isn't another firm with the same breadth of ambition and combined capabilities within its four walls. We have the expertise. We have the client units of trust, and we have strong investment and technology track records of success. We have nearly 23,000 colleagues that represent the best of our capabilities and the valuable institutional memory of all our combined history, all our shared experiences.
We're all One BlackRock and all working together towards delivering excellence for our clients and growth for our shareholders. I want to thank you for joining our Investor Day, and it's really my pleasure to pass it to Larry to close us out. Cheers.
Hi, everyone. I'll pick that up later. It's a real pleasure to be here today. Thank you for taking your time. I know everybody has so many commitments, and it's a real honor that you're spending the day with us today. Martin, thank you. Everybody, team, thank you. I see in the audience some of the investors and analysts here have been with us since the IPO 25 years ago.
I'm not going to call out those who have been with us for 25 years, and I know a lot of you are new to the BlackRock story and are deciding whether and when to step into buying the stock. Hopefully, you see today and heard today what makes BlackRock a special place. Is this the right time to select BlackRock as a stock to own? Also making sure that you're selecting an organization that has the right partners and the right people and the right culture and the right for the time that we are going to be presented in each and every market. I know we have the right people today. When we started the company 37 years ago, I invited only a few colleagues who reported to me to my house. Those key people did the right thing every day.
Their whole motivation was to grow the firm, to build the firm. It was about we. It was not about I. When you do that each day and each quarter and each year, it becomes a habit. As more and more people believe in that model, that One BlackRock culture, it continues on and grows and builds and continues to grow and build. It is integrated throughout the organization. I could tell you today, working with all the teams throughout the organization, all the different businesses, the GIP, it feels already as a One BlackRock firm. I am very excited in a few weeks to have the incredible talent of HPS joining us and being part of that.
I could stand here today and tell you that strategic acquisitions have strengthened our firm, have built a better culture for that, bringing top talent, many new skills, different experiences, different heritages into our organization and made our organization more fluid, more adaptive, and more prepared to handle the needs of the world, the markets, and our clients. Our culture has evolved to welcome new teams, to embrace the new teams, and build colleagues and friends throughout BlackRock under a One BlackRock culture. Today, it represents a blending of the best parts of the cultures that have come together over the years. With GIP, HPS, and Preqin, we were again looking for the right partners. Ultimately, they were the only organizations in their respective industries that we were even interested in.
It's not that they're just all premier firms, but hopefully, you heard, especially from Scott and Raj, it was a strong cultural fit, a culture built around putting clients first, second, and third. For weeks, we had conversations with each and every organization, and we talked about culture and what drives us and what motivates us about what our combined organizations would look like. We talked about that a lot before we even talked about valuation. The price is a price. It's the integration, the fit that builds an organization. Our acquisition philosophy has always been about growth. It has never been about cost takeouts, never been about reducing footprints, but then rebuilding. It was about reaching new heights, taking on new opportunities. Importantly, and as you heard that from Raj earlier, neither BlackRock nor the merging partners could have reached those levels on their own.
That's what makes me very proud of watching it come together and reaching new opportunities, new conversations, and importantly, building deeper and broader friendships. What makes our acquisition so successful was a steadfast commitment to integrate the organizations into one organization, One BlackRock. We do that to totally connect our clients so our clients understand that there's one platform, there's one culture using only one technology. As a result of that, no firm has the breadth or the scale of what we can provide to each and every client, whether it's a small client, an individual who's putting money each month in their defined contribution plan, or a very large sovereign wealth fund. It is our job to bring one firm together. Importantly, we do not represent as a collection or a cooperative of different enterprises. We know you're looking to see if we could execute.
I told my team that if it feels a bit like it did after we acquired BGI, I was not happy with the stock price after we did that transaction. The team knows I have high tolerance for disruption, but I have pretty low tolerance, probably a zero tolerance for mediocrity. Once we proved that our whole was exponentially stronger than the parts, the stock broke out. I believe this is going to be the case here today. We are singularly focused on executing these integrations to bring the breadth of BlackRock to each and every client. With the execution, doubling of operating income and stock price, I believe is very achievable. Looking back, being self-critical of my leadership at times, we probably did not use M&A enough in the years since BGI. Maybe we became a little too wedded to our history.
Yet through strategic, thoughtful acquisitions, we have proven that we could spark outsized growth. It is just as importantly about refining the organization, reorienting the organization, using the change as a stimulus, as an opportunity to build the organization, to refit the organization, and importantly, to get each and every employee to accept change. That change is powerful. That ethos of change, that integration of firms and the best parts of each and every culture, that is what allows us to be more adaptive, to be more responsive, and to be a better listener to each and every client. It is one of our biggest differentiators in working with our clients. Our model is very different, and it sets us apart from any other public or private market firm in the industry.
You look around the markets and you see traditional and alternative managers forming various tie-ups. You hear optimism around the potential for using private markets to build better retirement solutions, how insurers are increasing allocations of private credit. That's a place where BlackRock can succeed in a balance sheet lightweight. You hear about growing investments in data, in technology, Active ETFs, digital assets. BlackRock is at the cutting edge of everything I just told you. Each different firm is talking about what they could do differently. We're doing them all. We're transforming like no other firm. We're building this together and realizing the potential of these transformations. It is all within the walls of BlackRock. Two years ago, at our last Investor Day, I spoke of our willingness to take large bets, to disrupt ourselves and the industry to better serve our clients.
Our moves since then and the emerging early success of our combinations are proof points that our strategy is truly working. We have built a firm that is integrated across public and private markets, in asset management and in technology. With GIP and HPS, we will be a top five alternative provider. BlackRock houses the number one ETF franchise. We house $3 trillion of fixed income, $700 billion in insurance asset management, and a leading retirement services. We have over $500 billion in target date AUM alone. As private markets make their way into retirement solutions and portfolios, we have glidepath technology, the private markets content, the 30+ years of relationships with plan managers, managers who are small or large. Our proven Aladdin technology is powering whole portfolios across public and private markets.
Now with the addition of eFront and Preqin, no firm can blend that in a whole portfolio setting, bringing together the best of public and private markets together. For clients, we believe that this all means better performance through alpha, through indexation, through origination, better advice, better services. For you, our shareholders, we believe that results in premium organic growth and operating margins. Across our entire business, we are executing against this ambitious 2030 targets. As you have heard from Martin, we are aiming to drive more than $35 billion in revenues, $15 billion in operating income, and doubling our market cap to $280 billion. It is achievable and realistic. We raised the bar in aiming for above 5% organic base fee growth. We plan to raise a cumulative $400 billion in private markets by 2030. We focused on our margins and driving profitable growth.
This should translate to share price appreciation through higher earnings, multiple expansion, but importantly, with more resilience through different and diverse market cycles. Our shareholders, our employees will be the biggest beneficiaries of that next chapter of the BlackRock growth story. I spend much of my time on the road meeting clients. I flew back last night from the Middle East. I believe that connection with our clients is becoming deeper and deeper and deeper. When I think back now, when we started the organization and Rich Kushel and I were traveling together and we raised our first closed-end fund together, I learned early on that Rich is not going to be responsible for picking hotels. What was it? Days Inn? Holiday Inn. Holiday Inn, excuse me. Okay, great place.
Now I'm traveling around the world with Raj and Bayo among the BlackRock team. Rick Rieder was with me in the Middle East yesterday. We're bringing everybody together. We're connecting together with our clients. We feel more ambitious, more optimistic about the things we could do in infrastructure more than ever before as we are traveling. Traveling around the world becomes very clear that BlackRock is a unique global firm. Importantly, especially in these times when nationalism is rising, populism is rising, we have to become hyper-local. The role of capital markets is going to be more important in each and every country. That's our wheelhouse. That's our opportunity. That's our differentiation, that we have that opportunity to build capital markets in each and every market where we operate.
As we have since our foundings, we have a central role to play in the transformation of markets in each and every market we operate around the world. BlackRock is a growth business. We grow markets, we grow companies, we grow data and technology. It's a virtuous cycle that delivers growth for both our clients and our shareholders. Rob and I are deeply proud of the leadership team at BlackRock. It reflects a breadth of experience and sustained excellence. When we got started, we were all about raising BlackRock citizens for life. As we've taken on more important roles in our industry, we've taken on a role of growing its future leaders at BlackRock. Importantly, a number of our alumni have gone to take on more senior roles across financial services, and we are very proud to see their success.
While some of our senior leaders have moved on, I could stand here today and tell you I've never been prouder and feeling more confident that our senior leadership team is stronger and more connected to our clients and to each other as a community of leaders driving BlackRock to higher and higher opportunities and success. I have no doubt that the colleagues we're welcoming from GIP, Preqin, and soon HPS will also be great leaders at BlackRock. Just look at today. Nearly half the leaders you saw on stage today at BlackRock through five different acquisitions, including Tarek, Rick, Raff, and of course, Raj and Scott came through acquisitions. Our clients, shareholders, employees have all benefited from that cross-pollination of people from other successful organizations with our homegrown talent. I'm not planning to leave BlackRock anytime soon, so you don't have to have those questions later on.
A top priority for Rob and I, working with the board, is making sure we're developing the next generation of leaders for BlackRock. I could stand here to tell you this is the best leadership team we've ever had, way beyond the group of men and women who presented today. The depth of the organization in each and every sleeve and business that you heard from today, the scale of the leadership and the opportunities for young leaders to grow and build has never been more powerful today. I'm very confident we are going to have the leadership of the future way beyond any imagination that everybody could have today. I'm confident we're moving forward on that. I said in many ways, this is just the beginning for BlackRock.
I remember the five years between 2005 and 2009 where we integrated several multi-jurisdictional, multicultural organizations in a short period of time. That was State Street Research, MLIM, R3, Helix, and of course, BGI, which brought iShares. The work during this time resulted in immense growth for BlackRock and laid the groundwork for what we are today. As we build towards our 2030 ambitions, we are embarking on another intense five-year period of accelerated growth. We are already operating from record strength. The opportunities to deliver the organization to more individuals, to more companies, to governments, to regions is greater now than it has ever been. I would argue it is greater than any company across the traditional or private market asset management industry by far. We are delivering BlackRock to our clients in a comprehensive, consistent, determined way. We continue to remain steadfast in our One BlackRock culture.
That culture now integrates GIP, Preqin, and soon HPS. We have one platform, shared goals, and a common Aladdin technology. As a result, BlackRock is greater than the sum of the parts. I hope that this information and ambition from today, that this model tells you the same thing. The concept goes beyond what you get in a valuation model. Valuation models really do not tell you the essence of what a culture can drive and what an organization can consistently build. I could stand here and say our leaders are all talented individuals, but they have and will accomplish more because of the culture and the organization and how they work each and every day as a team.
I've never been more excited about the breadth of the organization, the opportunities I have that we see as a firm, the opportunities for us to capture more share of wallet, to capture synergies, and to build more revenue growth through this integration. I see greater opportunities ahead for BlackRock. Importantly, more opportunities for our clients, which will lead to more opportunities for our shareholders than ever before. Yes, it is a new BlackRock. We're just getting started, even at 37 years old. We hope you'll join us for the ride. I want to thank you again for being part of us today and being part of the BlackRock past, the present, and the future. I'm going to ask the team to come up here and sit in these orange chairs. We are going to be opening up for questions.
I think we have 35 minutes because we said we're going to end at 1:00 P.M. So 35 minutes of questions. Let me get that.
Oh, I'm sitting here?
I think you are. Did you not come?
You're sitting with us.
I'm standing.
You're standing.
I thought you said it. Okay. Rieder, you're standing with us.
I'm standing over there. Okay. I guess I can—am I on now?
You're on. I think we're all on.
I think the plan is if anyone has a question in the room, please just raise your hand. We'll get a mic over to you. If you raise your hand, we'll get a mic over to you. If you don't mind, just say your name, the firm that you're with.
We also had a couple of questions on the webcast that I'll read out, but I thought we'll maybe start in the room. All right. I see Craig. Why don't we start with Craig in the front?
Larry, Rob, team, thank you for a great event. Craig Siegenthaler, Bank of America. My question is on the EPS algo. You gave us a few pieces: base fee, organic growth rate above 5%, margin above 45%. My question is, we are missing a few inputs. If you could give us any high-level color on tech solutions revenue, also performance fees, because you've just done big acquisitions in those spaces. What could that contribute? On the operating margin, if you exceed 45%, get into the 45%-46% zone, is there a natural ceiling somewhere above that, or can you keep moving up towards 50% and above?
You want me to do that one? Yeah, okay. Thanks, Craig. That's your job. I appreciate it. Good, good, good to know. That's right, Craig. The BlackRock in 2030 strategy aims to take revenues to $35 billion, to double operating income, to hit 30%+ in private markets and tech revenues. The first thing I'd tell you is I understand why you look at the math and say 5% organic growth, 10% revenue CAGR. How do you get to those numbers? The answer is the substantial majority of that revenue growth is organic, right? 5%+ organic base fee growth, basically a doubling of the enterprise tech business in Aladdin, plus product extensions, Preqin product extensions to continue to grow that business.
We would have the balance in performance revenues from what is a much bigger private markets business as you get out to 2030. What I would say is we are very bullish on the plus part of the 5%+. I think if you just run some of the math, if that is 6%, 7%, 8%, you can see how you get to a substantial majority or more towards that $35 billion number. At $35 billion and double operating income growth at 45% or better margins, we would expect double-digit EPS growth in that scenario. That is all ex beta. Obviously, there is significant room to run with modest assumptions about beta growth. On the margin, we are targeting 45% or better. I think some of the sensitivities about margin expansion apply to what your market assumptions are in terms of growth.
The financial rubric means if you put bigger beta assumptions in, you'll basically get more of that beta dropping to the bottom line and higher and faster expanding margins.
Let me just add one thing that I think is really important. We believe the global capital markets are going to grow substantially over the next 10 years. We are hearing from more and more governments the need to be more in control of their economies through the development of their own capital markets, both debt and equity. They want to see their local companies expand, build, and more importantly, the retirement system changes that we're going to be seeing in every country is about the development of their own capital markets. Rachel talked about what we're doing in Saudi, the opportunities we have in India.
The conversation we're having with more and more countries, more and more governments is, in our opinion, going to be one of the key characteristics. When you talk about and think about one of the foundational reasons of the great success of the U.S. economy post the Great Financial Recession was the power of the capital markets. If you overlay what Scott was talking about related to private credit and the expansion there too, we see the pie just growing dramatically and the opportunity for a scaled operator who is hyper-locally connected. We have a really unique opportunity to be expanding these revenues in multiple sources that are not present today. We talked about some of the potentials earlier.
Great. Thank you. I want to just turn to a few that were submitted online.
The first one is from Barclays asking, who are Aladdin's competitors and how do clients consider their independence versus Aladdin being part of BlackRock, another asset manager?
I'm happy to take that one. Thanks for the question. I guess first and foremost, it's important to note that the competitive environment for technology, it's a highly competitive environment, and the field is actually expanding, not shrinking. We compete against people, firms continuing to do it themselves, upgrading legacy technology platforms that they've built over time. We see less of that, but it's still a big part of what we're facing in the market. We compete against other enterprise technology platforms who are similarly pursuing an end-to-end solution strategy.
We compete against point solutions, so smaller firms who provide a piece of the workflow, oftentimes in an industry-leading way. In that field, we're seeing a whole host of new competitors enter the marketplace, particularly in the space of data and AI. I would say to the second part of the question, as I mentioned in my presentation, I think this user-provider concept has been our special sauce and continues to be a key competitive advantage. It's probably the reason why some of our largest client relationships are other global sophisticated asset managers who I'm sure very much view BlackRock through a competitive lens. The reason why they ultimately go with Aladdin and make that decision is when you move to a new technology, these are long-term decisions. These are decisions that you're going to live with for a really long period of time.
I think they take great comfort in the fact that in BlackRock, they view a long-term strategic partner who will be there through thick and thin, the ups and downs. I think they view a high degree of alignment in terms of the roadmap and requirements. Each of us has a seemingly endless to-do list, but at least 50% of that to-do list we have in common. If we can do it together, if we can invest together and focus on the core, that will allow each and every one of these firms to differentiate themselves and focus on their points of competition and how they set themselves apart from BlackRock and everyone else. Finally, they take comfort in a level of commitment in ongoing investment. Technology is only as good as the amount you invest in it.
You need to invest in it more every year, not less. Because we are the biggest user of Aladdin, because we rely on it as our operating backbone, they take comfort that our level of commitment will continue for years and decades and for the future to come.
That's great. Thanks, Sudhir. One more submitted by our friend Bill Katz at Cowen. How do you think about the opportunity for private markets in US retirement? What needs to happen? How do you see BlackRock in that opportunity?
Sure. I'll do that. A couple of things. I think you heard throughout the day that the role of private markets in retirement is critical. I think you heard from Rich about target date funds, model portfolios.
I think you heard from Rachel about real transitions in the retirement ecosystem in the Netherlands, across Europe, the global move from DB to DC. This is not just a U.S. phenomenon. This is very much a global phenomenon, a huge opportunity for BlackRock as a large retirement manager in the world. With respect to U.S. defined contribution plans in particular, there is a real sea change happening. I was in Washington three weeks ago and had 30 meetings on the Hill. I was asked about this in every single meeting, in every single meeting. One meeting that was particularly poignant was with an elected representative from California who was saying, "What is this all about? Is this going to be a big problem for 401(k) plans?" I just asked, "Do the California pension plans that serve employees and teachers invest in the private markets and alternatives?
Are they considered big investors?" He said, "Yeah, absolutely. That's a big part of what they do." I said, "So why is it that a corporate plan can't access those same markets? Why wouldn't that be true all over the United States for the millions of American workers that ultimately are trying to build better portfolios and outcomes for retirement? What if I told you that putting private markets into retirement accounts could add 50 basis points of additional returns a year and 15% more retirement assets at the end of life? Is that something you think we should pursue?" Obviously, the answer was a resounding yes. I do think the interesting thing is that there's starting to be a fair amount of press and questioning whether ultimately, quote-unquote, "retail investors" or retirees could get hurt.
I think a really important thing here to consider is we're talking about private markets exposures in professionally managed multi-asset accounts. That's what a target date fund is. I see a real pathway for private markets making their way into target date funds. Larry mentioned it. Target date funds are the predominant way as qualified default investment alternatives that U.S. retirees access investments in their 401(k) for growth. There should be private markets. It will take some advice reform. It will take some regulatory support. I think there's a real sea change starting to happen on that and a path forward. It'll start with smaller plans, advisor-sold plans. It'll make its way into the middle market and ultimately into mega DC plans with the support, I think, of providers, consultants, and regulators.
All right. We'll take it back in the room.
I think Mike Brown on the side here, please. Thank you.
Hi, Mike Brown from Wells Fargo. Thank you for the time. Given BlackRock's strength in the insurance channel and the new capabilities from HPS, it certainly makes sense to lean in even more there. Regarding the private IG opportunity, how do you plan to approach that? Is that going to be driven by partnerships, or will that require some bolt-on acquisitions to kind of add and diversify origination?
Scott, you want to give it a go?
Yeah. Sure. Thank you. Thanks for the question. Good to see you. I mentioned it in the talk. The OCIO opportunity with sort of $700 billion and the ability to convert that, again, over 400 accounts, but the bulk of a lot of that capital concentrated with accounts that are sort of 30-50 accounts.
We have 125 insurance accounts already where we've done non-investment-grade credit. Pretty clear opportunity to just have those are already set up, and we already have dialogues going with sort of 40 or 50 of those. I think the combined assets right now, combined with BlackRock and HPS in already an investment grade, is $25 billion. We're well underway. I'm not sure that includes real estate. We can give you that. We can come back and give you the exact combination number if that's important. There's really systematically across sort of five categories, I would say corporate, traditional 144A type financing, small and medium-sized enterprise. That piece of it is pretty straightforward. We mentioned with the network that BlackRock has really unparalleled network to access that together with the bank relationships that I mentioned.
GP/LP solutions I mentioned increasingly, GP financing. A lot of these GPs need financing. That's traditionally been provided by banks. That's a big opportunity to allow, whether that's NAV financing or fund financing, our own fund financing as well as a big opportunity there. Infrastructure, again, together with GIP, but it's really traditional infrastructure, solar, data centers, Raj mentioned, telecom transport, and then real estate lending, private mortgages, and then non-QM growth and non-QM mortgages is very significant as well. Lastly would be sort of structured solutions. We actually have what we believe is the largest non-bank lease platform, which we're bringing here. We think we can access some of that private capital for those accounts as well, together with aircraft leasing, other forms of traditional lease finance that will come to the private market.
That is sort of what we are going to do. I think we can rapidly move from 25 to 100 and just execute on that. You are really only capturing anywhere from 50-200 basis point premium over public comparably rated credit. That is what we are doing.
Mike, on the second part of your question, I think a real strategic rationale for the combinations with GIP and HPS was being able to deliver origination from these platforms into insurance accounts, especially in investment grade. We will look at minority investments that expand those capabilities that would be geared all around origination. I think from what you heard today, those capabilities are here to originate. It is not just insurance.
It's going to power the whole platform, whether it's our fixed income mutual fund accounts and building public-private credit and public in retail portfolios, but also insurance is a real opportunity. Insurance is a real opportunity. Origination platforms would be a place where we're looking at minority investments. Minority investment is a good example. Minority investment in Viridium and the closed book German insurer is also a way to continue to grow those franchises.
Okay, great. I'm going to move up and down. Can we go all the way to the back? Is it Ben?
Hi, Ben Budish from Barclays. And thank you all so much for the presentation today. Wondering if you could drill in a little bit more on the private markets fundraising outlook. You've given some of the pieces, $70 billion in insurance, $60 billion in wealth. Curious, what are the other building blocks?
What does the flagship cycle look like over the next several years? How much is going to come from sort of open-ended fundraising? Maybe along the same lines, how are you thinking about public and private together? You talked a lot about portfolio management, which makes a lot of sense. We've seen a lot of your competitors sort of partner up traditional and private. It seems like you can do a lot of that in-house. How are you thinking about sort of new product creation along the same lines? Thank you.
Great. I think that one's going to be with me too. Clients are doing more with BlackRock in private markets. We're really excited about a growing pipeline with HPS and with GIP and really moving into a higher gear.
Raj went through with you the successful last close of GIP flagship fund V at target $25 billion, took you through the ambitions to build $30 billion in the AI infrastructure fund. From 2025 to 2030, as Larry mentioned and I mentioned, we're targeting $400 billion of gross private markets fundraising led by infrastructure and the alternative credit platforms. We spent a lot of time thinking through the pass and fundraising and capital formation to get to this $400 billion number. I can tell you, I think there's a lot of slightly different shapes. I'll share just different three. I think some of those will be dictated by clients in the markets. We feel very good about that number. First would be just building successor and extension strategies on the normal timeline for building successor funds.
Once funds get through their normal investment period, 70%+ invested, you'd see them back in market for successor funds. Under that construct, we'd see the shape of future fundraising to be fairly proportionate to the shape of the assets in our business pro forma today. Let's call it roughly a third, a third, a third coming from infra, alternative credit, other solutions. With more success, I think, in extension strategies, higher level of insurance client shifts to IG private debt, there's no question to me that each of infra and private credit could be 40%+ of fundraising. A second shape, I think, is really that we'd expect faster growth with our wealth clients. If the growth clients go faster, you're going to see a higher fundraising contribution, I think, from some of the private credit retail vehicles.
Scott took you through a plan with over $45 billion of new fee-paying AUM in retail and wealth. I think a stronger breakout in things like GP/LP solutions, a secondaries fund that's semi-liquid through wealth platforms, that could lift this even higher. The last thing I'll say is when we sat down to build the fundraising pipeline and what the future looked like with Raj and Bayo on the GIP and BlackRock combination, we never modeled this AI Infrastructure Partnership. That was not even part of the plan. I think Raj set out really nicely the enormity of the digital infrastructure opportunity. I think it has the opportunity to grow both GIP flagship infrastructure funds. It has adjacent financing opportunities, no question, for alternative credit and HPS funds, as well as just a bigger AIP program. We will look forward to tracking that progress on fundraising with you.
Is it Peter in the middle?
A famous business maxim is that there's only two ways to make money, to bundle or to unbundle. Investment management is famously an open architectured, unbundled industry. After 25 years of incredible work and then the recent M&A, your investment product set and technology set allows you to deliver 50/30/20 bundles at 50 basis points rather than 10% market wallet share at 15 basis points. Do you agree with this framing and opportunity? How do you intend to pursue bundles? Will you pursue, for example, disruptive bundle pricing, which comes with bundles? If that's the case, why aren't the financial targets higher? Every single basis point of fee growth is 7% organic growth. Thank you.
Sometimes I think the example of kind of Coca-Cola is a great example.
I think about Coca-Cola started selling cans in order to meet consumer demands, skinnier cans, six-packs, bottles, fountain soda. This concept of kind of bundling and unbundling, I think, is one that you see from the outside and not so much from the inside. From the inside, we're always dealing with a client's whole portfolio. Even if you're just dealing with one particular wedge of the portfolio, you're always dealing with the whole portfolio. In that sense, the more we can grow with those clients, you heard that from Rob Goldstein. You heard it from Rich. Rich, I think a good example of this would be to talk about what's happened with fee rates and product constructions in the models business. The models business is both an open architecture and an all-BlackRock business.
Maybe you could give some of that as an example of what happens in terms of pricing on fee rates.
Sure. I mean, I think the models business is a particularly interesting one. We talked about the total size of it. Let's be clear, we participate in that in multiple ways. One, as a building block provider for our own models, of course, as well as other people's models. What I think is most interesting is how that industry is evolving and what people are looking for. What we've been able to do is to incorporate a broader suite of strategies, notably Active ETFs, notably liquid alternatives into these strategies. That's what you've seen. I referenced the average fee rate on that business going from 12 to 19. Additionally, we have different branded suites of models.
We have our target allocation models, which are the most well-known and largest across the entire market. We have some more specialized models. Rick and his team run a series of models that are based off the flagship global allocation franchise. In that franchise by itself, where people are accessing the specific skills of certain teams, the average fee on those models is over 34 basis points. We are seeing a lot of growth there. I think the last element is as we begin incorporating the separately managed accounts, like the Aperio concept, with the tax efficiency that goes along with it. In fact, true privates, not just liquid alternatives like Raj and Scott referenced, we have a lot of upside in terms of increasing the average fee rate and participating in the biggest part of that whole portfolio.
Rich, if I could just add, because I think the question assumes a very binary world. I think one of the really strong competitive advantages of BlackRock is that we do not view it at all as binary. We view it as one continuous spectrum. In many regards, we view it through the lens of everything being technology. Whether we are the bundler or someone else is, they could use our technology. The ETF is a technology.
Importantly, one of the things that I had mentioned that we think maybe less so in the next investor day, but in this two or three from now is going to be really important is if you think about what's happening in the world right now, particularly with regard to digital assets and particularly thinking of it as a technology and tokenization as a core element of that, that's just going to make the friction costs associated with bundling go down. It's going to make the technology requirements for people to be able to put the Legos together go up, which is something that not only we're very excited about, but we believe as a company we could be quite catalytic towards.
Brian, over here.
Thank you. Brian Bedell, Deutsche Bank. Thanks very much again for the presentations today.
Maybe just building on that theme, Rob, on tokenization, if you can maybe, and Larry, Martin, and whoever else, add some more perspective on what you see in the next four years through six years through 2030 in terms of what part of how much of the ecosystem do you think will be tokenized? And then your role in that process, is that accretive to the model if you're able to do that? Or are there offsets on pricing? Do you think you gain market share, more organic growth?
I'm eager to take it. Thank you. I think that at least through our lens, I think it's not an if at this point. It's a when. It's harder to tell if it's going to be exactly in four years versus in six years versus in three years versus in nine years.
I think there's certain things that are pretty clear at this point. As a starting point, I've easily gotten pitched a 100 times on people who have come to talk to us about how every stock in the world should be tokenized. The reality is the marginal cost of trading a stock at BlackRock rounds to zero at this point. That is an R&R top 1,000 to-do list in terms of at least through the lens of the COO. If you look at things that should be reasonably simple within our ecosystem and the friction costs associated with them, someone buying or selling a fund, cash moving around, cash as collateral, the friction costs for these activities is still very, very high. I think it's quite clear it's going to go down.
I think there's two primary dimensions that are exciting to us as we see the world going forward. One is that we see a world where the token as a fund technology will enable it to be easier for people to bundle the building blocks in traditional capital markets. There is a technology element to this that will innovate just how funds are bought today. I think if we had a day where we looked into the fund process, I think that the ecosystem is shockingly behind the current state of technology. The second element is there's a very large emerging alternate universe that I like to think of in the digital asset space. That emerging universe has a significant amount of capital that's being allocated to it. Ultimately, I believe, we believe that traditional investment products will make their way into that space.
One of the most interesting things, I think IBIT is an incredible example of this, really a remarkable industry example of this. People wanted access to Bitcoin, but they wanted it through the boring old capital markets. I think there is a great untapped opportunity where people are going to want access to traditional capital markets things, but through the technologies of digital assets. That has yet to even begin.
Let me just add to that. If you look at the success of Brazil and India and the digitization of its currency and how it transformed those economies, you are going to see other economies go directly towards tokenization faster. You are going to see this convergence in some parts of the world faster than maybe countries that have more traditional capital markets. There is one thing clear, and I think it is really important what Rob said.
What we are noticing, the age differential between a typical capital market investor in stock and bonds and a typical investor globally in crypto, you're talking about half the age. The marriage, as Rob was talking about, of these two avenues, and if we could be that nexus, and that's what we're trying to do in our position in crypto, if we could be at that nexus of helping those younger investors who are big believers in crypto, but at one time in their life, they're going to have to start focusing on things like retirement, boring things like retirement. We look at this as an incredible opportunity to be connective and helping them on that long journey. I believe this is going to be one of the real big opportunities. Once again, this is a scale thing.
Having our position in technology and our position in ETFs and iShares allows us to have that deeper, faster, more resounding connectivity on marrying those two avenues.
Great. I see Glenn in the back here, please.
Thank you. Glenn Schorr, Evercore. Maybe a crossover question on private credit that I might get a little from Scott and a lot from Rick, I think. A lot of data providers and consultants talk about the big growth in private credit. I agree. They talk about it more in like low double digits and a doubling by 2030, including one that is named Preqin. You guys have $4.5 trillion going by 2030, which is a lot more. I like triple better than double. My question is, is the private investment grade opportunity the big difference in that type of exponential growth?
For Rick, your part is, what I'm curious is, if we take a big, huge install base of fixed income, your clients that you've grown up with, can you convince them, hey, investment grade is investment grade, whether it's public or private, can we port over a big block of fixed income all at once? I'd love your opinion on that.
I think there's a couple of things happening that are pretty extraordinary. There's a demographic in the world, and there's a wealth creation in the world. There are, depending on how you measure it, I think three to six times the size of wealth relative to financial assets that could be purchased today. It's part of why you see the technicals in the credit market are extraordinary. Part of why the equity market, even though multiples may be stretched, just continue to elevate.
There's an extraordinary need for assets, as Larry says, into retirement and just straight assets simultaneously. You think about how entities of finance, like governments, governments have financed through you spend, you borrow, you tax. You have got assets on balance sheet. Quite frankly, they're stretched today. I think what's happened, what's going to happen is you're going to unlock amazing amounts of assets. I think the securitization market, you think about how we finance real estate, how we finance student loans, how we finance so much of modern finance today, I think what's going to happen, what I think is incredibly exciting.
You've got incredible amounts of wealth globally, a need for assets, and you've got assets locked on balance sheets or they're not financed effectively. I think where you're going to see amazing growth is the ability to do that. I think the benefit to clients is you're going to get to buy new assets, investment grade, below investment grade, where you can look at what is your attachment point, what is your collateral. I think you're going to see advancements in finance that are going to be pretty extraordinary, that I think are great, phenomenal for investors.
Yeah, the only thing I—there are two things. One, I think in Martin's slide, he had private credit growing at 17% for the last five or so years. The $4.5 trillion, I think, was an estimate for like five years out. And then the research, again, the expanding definition of private credit, some research, you know, if you talk to people, everything on a bank balance sheet could be private. And you're seeing those trends, partly based on what Rick's saying, is anything that you can secure, whether you structure it, securitize it, and try to lower the cost of capital, that's going to just proliferate in both private markets and public markets. I—yeah, go ahead.
No, I was going to say one more thing. I mean, think about, you know, how corporations—I am talking about governments, corporations, the efficiencies of their balance sheet, how they think about subsidiaries. Raj talked about this, how they think about subsidiaries, how they think about hard assets, how do you finance those effectively. I think you are going to see an explosion of that in terms of how does real modern finance work over the next number of years.
Yeah. And then you overlay the growth, what Raj talked about, the, you know, incredible biggest CapEx cycle in our generation by a lot, not including really the power and a lot of the other things that are ancillary to all that. That's all going to come through, and some of that's going to be private and public. I’d sort of do 10%-20% growth by sector, and you'll be somewhere around that.
I would just add too, if you think about the most recent reallocation into Europe, for Europe to succeed with its big promise, the private markets of Europe, especially where the banking system is smaller than here in the U.S., the need for private credit, private capital is even greater than ever. And so I would.
That's great. I spent 15 years of my career in Europe. There is no integrated European capital market without private pools of capital, whether they're traded or private. That is a huge opportunity for us as an organization as Europe gets into a much more spending mode.
If you take that and think about the needs of Asia, the GCC region, these are just incredible opportunities that were not part of the possibilities just five years ago. That is the opportunity for BlackRock.
Great. Maybe we'll do one more. Michael Cyprys, please.
Great. Thank you. Michael Cyprys, Morgan Stanley. You guys have done a number of acquisitions over the past two years. Question, as you look at the firm today, are there any areas that you'd like to bolster, enhance, whether geographic, asset class presence, technological capabilities, expertise there in order to best capture the opportunity set? How are you thinking about inorganic growth, M&A, but also partnerships as you look out over the next five years?
As I said, Michael, thanks for the question, Michael. As I said, I think HPS, Preqin, GIP round out the larger scale M&A, I think, on our sort of near to intermediate term agenda. As we look out, I think the bolt-ons are about things that can help us expand capabilities across the private markets franchise. I think about logical extensions into things like real estate credit.
I think about logical extensions into other financing and receivables platforms. In technology, we think there are some really interesting bolt-on things that could help with Preqin, that could help accelerate the Aladdin platform. We see also sort of strategic partnerships with distribution venues, particularly Europe, Asia, and even right here in the United States, some other opportunities there for strategic partnerships. We did minority investments there. We did some of those in turnkey asset management platforms to help build public-private models businesses like we've done with places like Envestnet, GOL, i Capital, et cetera. We think there's more of that to do as well.
Great. Should we get the people some lunch?
Let's get the people some lunch.
Thank you, everyone.
Thanks, everyone. Thank you for joining.