BlackRock vs. Blackstone: 7 Key Differences, Definition

Both BlackRock and Blackstone are the biggest firms in New York that manage assets. These businesses offer a wide range of services, such as master limited partnerships, real estate, bonds, stock purchases, and more. But these companies are very different from each other.

The main difference between BlackRock and Blackstone is how they choose to invest their money.

The Blackrock Company

BlackRock, Inc. is an American company that manages international investments. It is based in New York.

In 1988, the group started out as a risk management and institutional fixed income fund. As of January 2022, it was in charge of assets worth $10 trillion, making it the biggest asset manager in the world. BlackRock has 70 offices in 30 countries and clients in 100 different countries.

BlackRock was made by Larry Fink, Robert S. Kapito, Benjamin Golub, Ralph Schlostein, Susan Wagner, Hugh Frater, Keith Anderson, and Barbara Novick. From a risk management point of view, they focus on giving institutional clients asset management services.

BlackRock vs. Blackstone

BlackRock is one of the biggest investors in the business of trading. But it is mostly called “the biggest cause of climate disaster” because of how bad it is for the climate.

The Blackstone Group

Blackstone Inc. is a New York-based alternative investment firm.

It is a well-known investment firm that manages money for pension funds, large institutions, and individuals. In 2019, Blackstone switched from being a public partnership to being a C-type corporation.

Peter G. Peterson and Stephen A. Schwarzman started Blackstone in 1985. It is a firm that helps companies merge or buy other companies.

The names of the two founders were used to come up with the name Blackstone. “Schwarz” means “black” in Greek, just like it does in German. “Petros” or “Petras” means “stone” or “rock” in Greek.

Blackstone’s investments are meant to help businesses be successful and strong because stable businesses lead to higher profits, stronger communities, and economic growth for everyone.

But Blackstone has been called out for its links to companies that cut down trees in the Amazon rainforest.

Key Differences Between BlackRock and Blackstone

ComponentsBlackRockBlackstone
HistoryBlackRock began in 1988 when the financial management of Blackstone intended to provide asset management and institutional clients. The Blackstone CEO gave Flink and his team a five-million-dollar line of credit in exchange for a 50% stake in their company.In 1992, Blackstone and Blackstone was one financial management with 53 billion dollars in their assets. In 1994 Fink and Schwarzman agreed to part ways on an international disagreement Financial, and Schwarzman sold his share of BlackRock.
ServicesThe accessibility that BlackRock has today allows it to have so many funds in management that anyone can easily invest through their products, whether individuals or institutions, through their range of iShares ETFs.Blackstone, on the other hand, is a private equity fund, which means everyone cannot invest in them, reducing the number of potential clients. But this does not stop the success of the company.
More PowerfulIf we compare BlackRock versus Blackstone, BlackRock has more than ten times the funds in their management. Which gives them great power when it comes to exercising voting rights with their companies.Blackstone has fewer employees as compared to BlackRock, which makes it a smaller company due to its industry. But BlackRock does not beat it in capitalization, a primary criterion for the strength of a company.
InvestorsBlackRock allows all types of investors to invest: from pension funds to retail investors and many other institutions.It does not allow everyone to invest and only works with high-net-worthy people and financial companies.
Deals inBlackRock deals in mutual funds, fixed-income assets, ETFs, risk management, etc.Blackstone deals in private equity, Hedge Funds, and real estate.
Perks and BenefitsThe BlackRock employees rated their Perk and Benefits 73/100, with Engineering and IT, two departments that have the higher rates.Employees at The Blackstone Group rate their Perk and Benefits Score a 60/100, with IT as the department that rates their experience the highest.

Who came first? BlackRock or BlackStone?

BlackRock was started in 1988, three years after Blackstone. Blackstone was started in 1985, three years before BlackRock.

Both of these businesses used to be part of Blackstone Financials. Three years later, when Lary Fink decided to start his own business, he wanted the name to start with the word “black.”

So he called his company BlackRock. Today, it is one of the biggest asset management companies in the world, bigger than its parent company.

BlackRock vs. Blackstone Similarities

  • Whether it’s BlackRock or Blackstone, the history of both companies is the same.
  • In 1988, the company was called Blackstone. when they were both part of the same company and had the same way of handling money.

Are BlackRock and Blackstone related to each other?

Blackstone and BlackRock used to go together, but now they don’t.

There’s a reason why their names go together. They have a history together. In fact, BlackRock started out as a company called “Blackstone Financial Management.”

Larry Fink and the other co-founders of BlackRock had the idea to start a business that would offer asset management services with a focus on risk management. Fink went to Blackstone co-founder Pete Peterson to ask for money to get the business going.

It started doing business in 1988, and by the end of 1994, it had $50 billion in assets and Blackstone financials.

At this time, both Schwarzman and Lary Fink made the official decision to split the two groups. The name of the second group was BlackRock.

BlackRock vs. Blackstone

Who is a bigger company: Blackstone or BlackRock?

BlackRock is now better known than Blackstone, the company that owns it.

The firm that owns BlackRock is called Blackstone. In 1988, a group called Blackrock was formed. The BlackRock company grew over and over again. Compared to its parent company, it has managed assets worth 9.5 trillion USD.

Conclusion

BlackRock and Blackstone are two of the largest asset management companies in the world. They do business all over the world. Both of these firms have been around for a long time and manage assets.

But if you compare BlackRock to Blackstone, you’ll find that each has a different way of investing and raising money.

BlackRock is a typical company that manages assets. It focuses on fixed-income investments, managing risks, and mutual funds. On the other hand, Blackstone focuses on real estate, hedge funds, and private equity.

Another big difference between these two companies is that BlackRock offers both open-ended and closed-ended investments, while Blackstone only offers closed-ended investments.

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