CNBC Interview Transcript with BlackRock CEO Larry Fink

Introduction

• BlackRock CEO Larry Fink interviewed on CNBC by Andrew
• Discussing a major upcoming transaction for BlackRock

Speculation on Private Equity

• There's been speculation that BlackRock might buy a private equity firm
• Instead, they're focusing on a different type of deal

Focus on Infrastructure

• BlackRock aims to become one of the largest infrastructure investors in the world
• Over 65% of BlackRock's clients are retirement assets
• Infrastructure provides long-duration, high-coupon, inflation-protected assets
• Many governments and companies are moving towards public-private partnerships for infrastructure
• Emphasis on the need for upgrading power grids and energy independence

Importance of Private Capital

• Increasing reliance on private capital and retirement assets for infrastructure investments
• BlackRock's longstanding relationship with GP (company or individual not defined clearly)

Partnership and Governance

• Dinner in September, key partners meeting in October, rapid movement
• BG Lacy to step down as lead director at Goldman Sachs and join BlackRock's board

Transformational Change for BlackRock

• Comparison to previous transformational deal with BGI and iShares
• Belief in global capital markets becoming larger components of economic activity

Growth in Infrastructure

• Infrastructure as an asset class is expected to grow rapidly
• Current and future investments in infrastructure expected to be significant

Investor Reactions

• Investors have been notified and are excited about the transaction
• Post-transaction, BlackRock and GP will have over $150 billion in infrastructure
• Ongoing discussions with major companies and governments for large infrastructure deals

Financial Impact on BlackRock

• Doubles BlackRock's fee-related revenues in private markets to over $1.5 billion
• Still a relatively small portion of BlackRock's $18+ billion revenue platform
• Strengthens BlackRock's position in investment ideas, technology, and infrastructure private markets

Conclusion

• BlackRock is making significant moves to expand in infrastructure investment
• The future growth of infrastructure investments is anticipated to outpace other sectors
• The overall strategy positions BlackRock as a leader in integrating various investment ideas and technologies.