BLK · Earnings call · 2026Q3T · Full report

Private Credit Expansion

BlackRock, Inc. · 2026-10-14 · Importance 29 · Surprise 30 · In source text

Management expects private-markets fundraising to strengthen in the fourth quarter after the seasonally soft third quarter, including growth in fee-paying day-one strategies. BlackRock has approximately $20 billion in evergreen assets and generated about $1.2 billion of quarterly flows, including $800 million of gross subscriptions, which management said suggests the category is turning a corner. Higher base rates are expected to support allocations to private credit and retail BDCs in direct lending, while resilient performance and higher cash-on-cash yields are improving distributor discussions. Redemptions remain in the queue, but management expects a more constructive environment for evergreen structures in the fourth quarter and the first half of next year.

Key facts

• BlackRock raised $68 billion in private markets over the last 12 months in private credit and expects private credit momentum to accelerate into year-end and into 2027.
• BlackRock reported that it raised $25 billion in private credit in its first full year with HPS and sees especially strong traction with insurance companies rotating or adding to high-grade solutions.
• BlackRock raised $25 billion in private credit in its first full year with HPS.
• BlackRock raised $68 billion in private markets over the last 12 months in private credit.
• An increase in base rates is expected to bring back constructive allocations to private credit and retail BDCs in the direct-lending space.
• BlackRock has substantial demand across private credit funds, insurance mandates, customized client accounts, pension funds, and OCIO mandates.
• BlackRock says private credit performance has been resilient.

Impact estimates