BlackRock vs. Blackstone: What Is the Difference Between BlackRock and Blackstone?

What are the differences between BlackRock and Blackstone? Both are financial firms, but they have different strengths and focus. Read more to learn about the key differences between these two firms.
BlackRock vs. Blackstone: 6 Key Differences, Pros & Cons, Similarities

BlackRock vs. Blackstone: both are the biggest assets management companies in New York. These companies offer master limited partnerships, real estate, bonds, buying stocks, and many other facilities. But these companies are different from each other in many ways. The main difference between BlackRock and Blackstone is their investment strategy.

Let’s take a closer look at Blackstone versus BlackRock

Main ActivityBlackRock is fund management, while Blackstone is a private equity
Year FoundedBlackRock was founded in 1985, while Blackstone was in 1988
No. of EmployeesBlackRock has more employees
CEOBlackRock’s CEO is Larry Frink, while Stephen A. Schwarzman is Blackstone’s CEO

What is BlackRock?

What is BlackRock? If we talk about BlackRock meaning, it is a Multinational company in America that is well known as the world's largest asset manager due to its retail and fund management services. This company's headquarters is in New York, with over 10 trillion in assets under management at the time of writing. BlackRock was founded in 1988 by employees of First Boston and Lehman Brothers, Most famous Larry Fink, who is the CEO of this company today. BlackRock does not have a limitation on investing, as it allows everyone to invest and deals in mutual funds. This is due to the higher accessibility of this company, which allows it to deal in large amounts of funds.

If we talk about BlackRock meaning, it is a Multinational company in America that is well known as the world’s largest asset manager due to its retail and fund management services. This company’s headquarters is in New York, with over 10 trillion in assets under management at the time of writing. BlackRock was founded in 1988 by employees of First Boston and Lehman Brothers, Most famous Larry Fink, who is the CEO of this company today. BlackRock does not have a limitation on investing, as it allows everyone to invest and deals in mutual funds. This is due to the higher accessibility of this company, which allows it to deal in large amounts of funds.

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What is Blackstone?

What is Blackstone? If we talk about Blackstone meaning, it is also an American Multinational company founded in 1985 by two Lehman Brothers employees, Schwarzman and Peterson. Initially founded as an M&A firm, it expanded into other areas, such as distressed business advisory, private equity, and real estate. Now Blackstone has $881 billion in asset management and is known as the largest private equity firm in the world. Blackstone investment aims to build a successful business with stronger communities and economic growth. However, this company has been criticized due to its connections with firms regarding the deforestation of the Amazon forest. Moreover, this company also has fewer employees as compared to BlackRock, which makes it smaller than that. But BlackRock does not beat it in capitalization, the primary criterion for the strength of a company.

If we talk about Blackstone meaning, it is also an American Multinational company founded in 1985 by two Lehman Brothers employees, Schwarzman and Peterson. Initially founded as an M&A firm, it expanded into other areas, such as distressed business advisory, private equity, and real estate. Now Blackstone has $881 billion in asset management and is known as the largest private equity firm in the world. Blackstone investment aims to build a successful business with stronger communities and economic growth. However, this company has been criticized due to its connections with firms regarding the deforestation of the Amazon forest. Moreover, this company also has fewer employees as compared to BlackRock, which makes it smaller than that. But BlackRock does not beat it in capitalization, the primary criterion for the strength of a company.

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6 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.

BlackRock vs. Blackstone Similarities

  • Whether it is BlackRock or Blackstone, Both of these companies share the same history.
  • BlackRock was originally known as Blackstone in 1988. When both were one company with one financial management.
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BlackRock vs. Blackstone Pros and Cons

BlackRock Pros and Cons

BlackRock Pros and Cons

Pros of BlackRock

  • BlackRock allows everyone to invest, and the investors don’t have to worry about buying and selling securities as the management does all the work.
  • BlackRock also provides tax advantages to multiple states with added benefits for Ohio residents.

Cons of BlackRock

  • BlackRock company has faced various short-term challenges like relative overpopulation and earning revisions.
  • Mutual funds at BlackRock ask you to invest a lot of money; in some cases, you can not invest less than $1,000.

Blackstone Pros and Cons

Blackstone Pros and Cons

Pros of Blackstone

  • Blackstone works only with leaders and operators around the world to make the companies stronger and sustainable for the long term.
  • Blackstone company provides a lot of employee benefits like health insurance, maternity leave, and 401K insurance.

Cons of Blackstone

  • Blackstone has far fewer employees as compared to BlackRock, which makes it a smaller company as compared to that.
  • Blackstone only allows worthy people to invest in them, which means not everyone can invest in the company.

Comparison Chart

What are the differences between BlackRock and Blackstone? Both are financial firms, but they have different strengths and focus. Read more to learn about the key differences between these two firms.

Comparison Video

BlackRock vs. Blackstone: Private Equity Rivalry

Conclusion

BlackRock and Blackstone are both the world’s largest asset management companies which are working on the global level. These companies share the same history and deal with asset management. But if we look at BlackRock vs. Blackstone differences, both have different ways of investing and funding. BlackRock is a traditional asset management company that deals in fixed—income assets, risk management, and mutual funds. In contrast, Blackstone deals in Private Equity, Hedge Funds, and real estate. Another notable difference between these two companies is that BlackRock offers both open-ended and closed-ended investments, while in Blackstone, only close-ended investments are available.   

Alex Stantor

Alex Stantor is a Sorbonne University (Paris, France) graduate in Philosophy and Data Analysis. Currently, he is an Author and Researcher at Difference 101, he writes articles/blog posts on topics such as "thinking differently" and "the importance of difference". Alex is a passionate advocate of diversity in the workplace and in companies, and diversity and inclusion in corporate communications. He currently lives in Brooklyn.

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