BLACKROCK COMPREHENSIVE EXAM
STUDY GUIDE WITH COMPLETE
SOLUTIONS
●● What are BlackRock's three reinforcing businesses?
Answer: 1) The scale index and ETF business, led by iShares, which
provides client relationships; 2) Aladdin, the technology and investment-
infrastructure business; 3) alternatives and private markets, which are
smaller in assets but disproportionately important for revenue and
strategy.
●● What is the clearest framing of BlackRock's current strategy?
Answer: BlackRock is using the distribution and technology built by its
index business to become a top-tier private-markets manager. The GIP,
HPS, Preqin and ElmTree transactions fit that strategy.
●● What are the five BlackRock Principles?
Answer: We are a fiduciary to our clients; We are One BlackRock; We
are passionate about performance; We take emotional ownership; We are
committed to a better future.
●● BlackRock Principle: We are a fiduciary to our clients
Answer: Clients' interests come first. The fiduciary mindset reflects
integrity and unbiased advice.
,●● BlackRock Principle: We are One BlackRock (1BLK)
Answer: A connected and inclusive culture that draws expertise from
across the firm. Aladdin acts as a common language for interpreting
markets and client needs.
●● BlackRock Principle: We are passionate about performance
Answer: Relentlessly find better ways to serve clients, with innovation
central to delivering performance.
●● BlackRock Principle: We take emotional ownership
Answer: Be personally invested in clients' futures and in the success of
the firm and colleagues, while holding one another to high standards.
●● BlackRock Principle: We are committed to a better future
Answer: Think long term across clients, employees, shareholders and
communities, and run the business sustainably.
●● What are BlackRock's main revenue streams?
Answer: Recurring base fees charged on AUM; performance fees from
alternatives and some active strategies when returns exceed a hurdle;
and technology-services revenue from Aladdin licensing.
●● Why does BlackRock's AUM mix matter more than the total?
, Answer: Different products earn different fee rates. Equity is about 58%
of AUM and roughly 50% of base fees; ETFs about 41% of AUM and
45% of fees; alternatives about 3% of AUM but roughly 15% of base
fees.
●● Why are alternatives strategically important to BlackRock?
Answer: Alternatives represent only about 3% of AUM but roughly 15%
of base fees, so shifting toward private markets can raise the average fee
rate and revenue mix.
●● What is BlackRock's geographic AUM and base-fee mix?
Answer: Americas: about 68% of AUM and 66% of base fees. EMEA:
about 26% and 28%. Asia-Pacific: around 6% of both.
●● How much did BlackRock spend building its private-markets
platform?
Answer: Approximately $28 billion combined on GIP, HPS and Preqin
over roughly two years, allowing the firm to build scale faster than it
could organically.
●● What did Global Infrastructure Partners (GIP) add to BlackRock?
Answer: Transformative infrastructure scale. Infrastructure client assets
rose from about $42 billion to $212 billion year on year.
●● Why is infrastructure attractive to BlackRock's institutional clients?
STUDY GUIDE WITH COMPLETE
SOLUTIONS
●● What are BlackRock's three reinforcing businesses?
Answer: 1) The scale index and ETF business, led by iShares, which
provides client relationships; 2) Aladdin, the technology and investment-
infrastructure business; 3) alternatives and private markets, which are
smaller in assets but disproportionately important for revenue and
strategy.
●● What is the clearest framing of BlackRock's current strategy?
Answer: BlackRock is using the distribution and technology built by its
index business to become a top-tier private-markets manager. The GIP,
HPS, Preqin and ElmTree transactions fit that strategy.
●● What are the five BlackRock Principles?
Answer: We are a fiduciary to our clients; We are One BlackRock; We
are passionate about performance; We take emotional ownership; We are
committed to a better future.
●● BlackRock Principle: We are a fiduciary to our clients
Answer: Clients' interests come first. The fiduciary mindset reflects
integrity and unbiased advice.
,●● BlackRock Principle: We are One BlackRock (1BLK)
Answer: A connected and inclusive culture that draws expertise from
across the firm. Aladdin acts as a common language for interpreting
markets and client needs.
●● BlackRock Principle: We are passionate about performance
Answer: Relentlessly find better ways to serve clients, with innovation
central to delivering performance.
●● BlackRock Principle: We take emotional ownership
Answer: Be personally invested in clients' futures and in the success of
the firm and colleagues, while holding one another to high standards.
●● BlackRock Principle: We are committed to a better future
Answer: Think long term across clients, employees, shareholders and
communities, and run the business sustainably.
●● What are BlackRock's main revenue streams?
Answer: Recurring base fees charged on AUM; performance fees from
alternatives and some active strategies when returns exceed a hurdle;
and technology-services revenue from Aladdin licensing.
●● Why does BlackRock's AUM mix matter more than the total?
, Answer: Different products earn different fee rates. Equity is about 58%
of AUM and roughly 50% of base fees; ETFs about 41% of AUM and
45% of fees; alternatives about 3% of AUM but roughly 15% of base
fees.
●● Why are alternatives strategically important to BlackRock?
Answer: Alternatives represent only about 3% of AUM but roughly 15%
of base fees, so shifting toward private markets can raise the average fee
rate and revenue mix.
●● What is BlackRock's geographic AUM and base-fee mix?
Answer: Americas: about 68% of AUM and 66% of base fees. EMEA:
about 26% and 28%. Asia-Pacific: around 6% of both.
●● How much did BlackRock spend building its private-markets
platform?
Answer: Approximately $28 billion combined on GIP, HPS and Preqin
over roughly two years, allowing the firm to build scale faster than it
could organically.
●● What did Global Infrastructure Partners (GIP) add to BlackRock?
Answer: Transformative infrastructure scale. Infrastructure client assets
rose from about $42 billion to $212 billion year on year.
●● Why is infrastructure attractive to BlackRock's institutional clients?
