BlackRock vs The Blackstone Group: Where Should You Invest? | HelpAdvisor.com (2024)

BlackRock vs The Blackstone Group: Where Should You Invest? | HelpAdvisor.com (1)

Christian Worstell | November 06, 2023

Choosing between investment firms can be a tough decision. After all, you want to be sure your retirement income is secure and provides the returns that you expect.

BlackRock and The Blackstone Group are two of the largest investment firms in the world, but how do they differ? Read on to learn more about each company and what they offer so you can determine if one might be right for your future investments.

What Products Do BlackRock and The Blackstone Group Offer?

BlackRock Products and Services

Blackrock is a traditional investment firm that offers both open- and closed-ended investments. Some of its products and services include:

  • an iShares ETF management tool
  • Stocks and bonds
  • Mutual funds
  • Alternative investments, such as private assets and hedge funds
  • Retirement planning

BlackRock caters to individuals and institutions with its mixture of investment services.

The Blackstone Group Products and Services

The Blackstone Group is a more exclusive firm offering alternative investments such as:

  • Private equity
  • Real estate
  • Hedge fund solutions
  • Credit and insurance

It has fewer managed assets globally than BlackRock, but it’s a niche firm. As such, it works only with high-net-worth individuals and financial institutions.

What Fees Does BlackRock charge?

The fees associated with investing vary depending on which products you use and how much you invest.

Equity funds, multi-asset funds, fixed income funds and cash investments all have their own fee schedules. Each may have an initial sales charge up to around 5% and an ongoing trail of around 0.25% that starts immediately after you make a purchase. As the investment amount increases, percentage fees decrease.

For example, invest less than $25,000 in equity funds for a 5.25% sales charge — invest more than $750,000, and the charge drops to 1.5%. Index and cash investments pose no sales charge.

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What Fees Does The Blackstone Groupcharge?

Although Blackstone doesn't make its fee structure clear on its website, it's understood that it charges management and performance fees.

BlackRock vs The Blackstone Group: Which Is the Bigger Company?

Technically speaking, BlackRock is the largest of the two companies, with more than 16,000 employees and over $10 trillion in assets under management (AUM), compared with Blackstone, which has just over 3,000 employees and $900 billion AUM in assets.

However, the two companies aren’t really comparable by numbers alone, as they provide services to different sectors of the market and are both strong investment firms in their own rights.

BlackRock is the world's largest asset manager and Blackstone Group is the world’s largest private equity firm.

Are BlackRock and The Blackstone Group Connected?

BlackRock and The Blackstone Group are often confused as they share similar names and origins. Founded in 1985, both companies fell under an umbrella company called Blackstone Financial Management, a mergers and acquisitions company. In 1988, BlackRock separated from the parent company and focused on risk management. Today, they're now completely separate companies with different offerings.

BlackRock and The Blackstone Group: Which Is Best For Investing?

BlackRock is a more accessible asset management company with virtually no barrier to entry. Services such as iShares lets even new investors invest in ETFs. The main website provides a comprehensive education section to help any individual learn more about investing. Its fee list is fairly transparent, too. You may want to consider BlackRock if you’re looking for a more traditional investment firm.

The Blackstone Group caters mostly to high-net-worth individuals and exclusively manages alternative assets. If you require a more exclusive approach to investing, this could be a good fit.

Have Medicare questions?

Talk to a licensed agent today to find a plan that fits your needs.

877-578-6039

BlackRock vs The Blackstone Group: Where Should You Invest? | HelpAdvisor.com (2024)

FAQs

BlackRock vs The Blackstone Group: Where Should You Invest? | HelpAdvisor.com? ›

You may want to consider BlackRock if you're looking for a more traditional investment firm. The Blackstone Group

The Blackstone Group
Blackstone Inc. is an American alternative investment management company based in New York City. Blackstone's private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate business has actively acquired commercial real estate.
https://en.wikipedia.org › wiki › Blackstone_Inc
caters mostly to high-net-worth individuals and exclusively manages alternative assets. If you require a more exclusive approach to investing, this could be a good fit.

Is BlackRock a good place to invest? ›

BlackRock's analyst rating consensus is a Strong Buy. This is based on the ratings of 13 Wall Streets Analysts. Open a brokerage account, see exclusive account opening deals on our Best Online Brokers page.

Where to invest in BlackRock? ›

You can buy and hold shares in BlackRock-managed investment trusts through most online brokers.

How much money do you need to invest with Blackstone? ›

BlackStone allows you to invest with a $2,500 minimum for their Class D, S, and T shares and a $1,000,000 minimum investment for their Class I shares.

What stock does BlackRock own the most? ›

How many companies does BlackRock own? As of November 2023, BlackRock's portfolio consisted of 5,349 holdings. The top five holdings included Apple (AAPL), Microsoft (MSFT), NVIDIA (NVDA), Amazon (AMSN), and Alphabet (GOOGL).

Why not to invest in BlackRock? ›

Global asset managers, like BlackRock, supply fossil fuel companies with a steady stream of capital. They also invest heavily in companies driving deforestation and back firms that undermine Indigenous rights.

Is BlackRock a safe stock? ›

Experts seem to have mixed opinions on BlackRock Inc. (BLK) with some highlighting its strong financial performance, diversified nature, and potential for growth, while others express concerns about stiff competition, slow stock growth, and a history of missing estimates.

What's the difference between Blackstone and BlackRock? ›

BlackRock works largely with traditional market vehicles like stocks, bonds and ETFs. Blackstone focuses on alternative investments that aren't widely available to the public but could generate huge profits in the future.

How to make money from BlackRock? ›

1. Dividends: BlackRock, like many other publicly traded companies, may pay dividends to its shareholders. Dividends are typically a portion of the company's profits that are distributed to shareholders on a regular basis. The amount of dividends paid can vary and is determined by the company's board of directors.

Who is the biggest investor in BlackRock? ›

Laurence D.

Fink is the CEO and co-founder of BlackRock. Along with seven colleagues, he started the company. As of 31 January 2023, he owned 520,126 making him the biggest individual shareholder.

Can anyone invest with Blackstone? ›

We serve institutional and individual investors by building strong businesses that deliver lasting value.

Why is Blackstone a good investment? ›

For income investors, Blackstone currently pays out a 2.8% dividend yield. While that is not groundbreaking, it is double the 1.4% average yield of the S&P 500. Depending on company operations, these distributions vary from quarter to quarter.

Why invest in Blackstone? ›

Blackstone is the world's largest alternative asset manager with investment businesses spanning private equity, real estate, credit and hedge fund solutions. We remain committed to delivering strong performance across market cycles on behalf of institutions and individual investors.

What is bigger than BlackRock? ›

Some examples of companies that are currently larger than BlackRock in terms of market capitalization include: - Apple Inc. - Facebook Inc. - Tesla Inc.

Does BlackRock own Amazon? ›

Blackrock

With 613.38 million shares valued at $90.18 billion, it ranks as the third-largest shareholder among Amazon's top ten and the second-biggest institutional shareholder. These holdings represent 5.94% of Amazon's total outstanding stock. As of September 30, 2023, Blackrock managed assets totaling $9.1 trillion.

Does BlackRock own Tesla? ›

Who is Tesla owned by? The largest individual Tesla shareholder is Elon Musk, who owns about 13% of the company's common stock. Vanguard and BlackRock are the two largest institutional investors, owning about 7.2% and 5.9% of outstanding shares, respectively.

Why do people invest in BlackRock? ›

We help millions of people build long-term financial freedom

We make it possible for our clients and the people they serve to save for retirement, pay for college, buy homes, and start new businesses.

Is BlackRock overpriced? ›

The intrinsic value of one BLK stock under the Base Case scenario is 714.29 USD. Compared to the current market price of 803.32 USD, BlackRock Inc is Overvalued by 11%.

Does BlackRock outperform the S&P 500? ›

Amid the current financial backdrop, BLK stock has witnessed gains of 10% from levels of $720 in early January 2021 to around $805 now, vs. an increase of about 40% for the S&P 500 over this roughly 3-year period.

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