We are sure you have heard a lot about Blackrock and Blackstone, especially if you are interested in the world of economics and finance. Their name can lead to confusion, as they are very similar, but they are really different financial companies, with their particular structure, functions and the way they approach their business. Here you can see the difference between them: Blackrock vs Blackstone, but let’s learn more about them, so read on if you are interested!
Let’s start with Blackrock. Undoubtedly, this company is a global giant dedicated to asset management. It was founded by Larry Fink in New York in 1988, and in recent years it has had a mind-blowing exponential growth.
What is Blackrock’s main financial activity? It is mutual fund management and manages mutual funds, exchange-traded funds (ETFs) that encompass many asset classes, such as stocks, bonds and real estate, not to mention pension funds, insurance companies and investors.
But Blackrock is not only dedicated to asset management, but also offers financial advisory and risk management services, as the company is globally recognized for its great capacity for financial analysis and management of very important portfolios, with recommendations of vital importance for all those companies that rely on its services, such as Microsoft, Apple, Amazon, P&G, Johnson & Johnson, Pfizer, among others.
As mentioned above, although the name is very similar to Blackrock, Blackstone has a different approach. It was founded a few years earlier, in 1985 by Stephen A. Schwarzman and Peter G. Peterson, and is characterized as an alternative investment firm, focused on specialized investments and private equity investments.
What is Blackstone’s core business? Well, it is primarily engaged in investing in alternative assets, such as real estate, hedge funds, private equity and credit. On the other hand, it also has its focus on institutional investment, where they excel in the management of pension funds and foundations, offering them the possibility of investing in the areas mentioned above.
There is a larger area of action, as Blackstone also acquires companies that are struggling or in a growth phase and brings them to a higher level of performance. This part of its investment business results in the restructuring of companies as well as strategic decisions.
Let’s not forget about your part in terms of your investments in the real estate market. Another strength of Blackstone is investing in residential, commercial, and industrial properties around the world. Not only does it acquire these properties, it also sometimes manages their real estate portfolios.
In short, Blackstone is dedicated to and specialized in investing in alternative assets and non-traditional strategies.
We hope that after reading these lines it has become clearer to you what Blackrock and Blackastone do and that you can appreciate the difference and that you can better understand the world of economics and finance, whether you are interested in it as a hobby or if you are thinking of investing.
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