Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2023

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis


December 31, 2023 (in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Investments Measured at NAV(1)		Other(2)		December 31, 2023
Assets:
Investments
Debt securities:
Trading securities	$	—	$	1,829	$	42	$	—	$	—	$	1,871
Held-to-maturity investments		—		—		—		—		617		617
Total debt securities		—		1,829		42		—		617		2,488
Equity securities at FVTNI:
Equity securities/mutual funds		1,585		—		—		—		—		1,585
Equity method:
Equity, fixed income, and multi-asset mutual funds		246		—		—		—		—		246
Hedge funds/funds of hedge funds/other		—		—		—		588		—		588
Private equity funds		—		—		—		1,264		—		1,264
Real assets funds		—		—		—		417		—		417
Investments related to deferred cash compensation plans		—		—		—		241		—		241
Total equity method		246		—		—		2,510		—		2,756
Loans		—		30		175		—		—		205
Federal Reserve Bank Stock		—		—		—		—		92		92
Carried interest		—		—		—		—		1,975		1,975
Other investments		15		—		—		467		157		639
Total investments		1,846		1,859		217		2,977		2,841		9,740
Other assets(3)		117		19		120		—		—		256
Separate account assets		34,621		20,810		—		—		667		56,098
Separate account collateral held under securities lending agreements:
Equity securities		1,686		—		—		—		—		1,686
Debt securities		—		2,872		—		—		—		2,872
Total separate account collateral held under securities lending agreements		1,686		2,872		—		—		—		4,558
Total	$	38,270	$	25,560	$	337	$	2,977	$	3,508	$	70,652
Liabilities:
Separate account collateral liabilities under securities lending agreements	$	1,686	$	2,872	$	—	$	—	$	—	$	4,558
Other liabilities(4)		—		17		279		—		—		296
Total	$	1,686	$	2,889	$	279	$	—	$	—	$	4,854

(1)

Amounts are comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient.

(2)

Amounts are comprised of investments held at amortized cost and cost, adjusted for observable price changes, carried interest and certain equity method investments, which include sponsored investment funds and other assets, which are not accounted for under a fair value measure. In accordance with GAAP, certain equity method investees do not account for both their financial assets and liabilities under fair value measures; therefore, the Company’s investment in such equity method investees may not represent fair value.

(3)

Level 1 amount includes a minority investment in a publicly traded company. Level 3 amount includes a strategic private debt investment with changes in fair value recorded in AOCI, net of tax.

(4)

Level 2 amount primarily includes fair value of derivatives (See Note 8, Derivatives and Hedging, for more information). Level 3 amount primarily includes borrowings of a consolidated CLO classified based on the significance of unobservable inputs used for calculating the fair value of consolidated CLO assets, and contingent liabilities related to certain acquisitions.


December 31, 2022 (in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Investments Measured at NAV(1)		Other(2)		December 31, 2022
Assets:
Investments
Debt securities:
Trading securities	$	—	$	1,279	$	52	$	—	$	—	$	1,331
Held-to-maturity investments		—		—		—		—		544		544
Total debt securities		—		1,279		52		—		544		1,875
Equity securities at FVTNI:
Equity securities/mutual funds		1,211		—		—		—		—		1,211
Equity method:
Equity, fixed income, and multi-asset mutual funds		181		—		—		—		—		181
Hedge funds/funds of hedge funds/other		—		—		—		525		—		525
Private equity funds		—		—		—		885		—		885
Real assets funds		—		—		—		304		—		304
Total equity method		181		—		—		1,714		—		1,895
Loans		—		106		248		—		—		354
Federal Reserve Bank Stock		—		—		—		—		91		91
Carried interest		—		—		—		—		1,550		1,550
Other investments		28		—		—		316		146		490
Total investments		1,420		1,385		300		2,030		2,331		7,466
Other assets(3)		145		1		—		—		—		146
Separate account assets		34,823		18,544		—		—		699		54,066
Separate account collateral held under securities lending agreements:
Equity securities		2,163		—		—		—		—		2,163
Debt securities		—		3,602		—		—		—		3,602
Total separate account collateral held under securities lending agreements		2,163		3,602		—		—		—		5,765
Total	$	38,551	$	23,532	$	300	$	2,030	$	3,030	$	67,443
Liabilities:
Separate account collateral liabilities under securities lending agreements	$	2,163	$	3,602	$	—	$	—	$	—	$	5,765
Other liabilities(4)		—		31		280		—		—		311
Total	$	2,163	$	3,633	$	280	$	—	$	—	$	6,076

(1)

Amounts are comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient.

(2)

(3)

Level 1 amount includes a minority investment in a publicly traded company. Level 2 amount primarily includes fair value of derivatives (See Note 8, Derivatives and Hedging, for more information).

(4)

Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for 2023


(in millions)	December 31, 2022		Realized and Unrealized Gains (Losses)		Purchases		Sales and Maturities			Issuances and Other Settlements(1)			Transfers into Level 3		Transfers out of Level 3			December 31, 2023		Total Net Unrealized Gains (Losses) Included in Earnings(2)
Assets:
Investments:
Debt securities:
Trading	$	52	$	—	$	8	$	(18	)	$	—		$	—	$	—		$	42	$	—
Total debt securities		52		—		8		(18	)		—			—		—			42		—
Loans		248		13		76		(58	)		(122	)		38		(20	)		175		(1	)
Total investments		300		13		84		(76	)		(122	)		38		(20	)		217		(1	)
Other assets		—		7		113		—			—			—		—			120		7
Total assets	$	300	$	20	$	197	$	(76	)	$	(122	)	$	38	$	(20	)	$	337	$	6
Liabilities:
Other liabilities	$	280	$	1	$	—	$	—		$	—		$	—	$	—		$	279	$	1

(1)

Issuances and other settlements amount includes a deconsolidation related to a previously consolidated VRE. In addition, issuances and other settlements include a contingent liability in connection with the acquisition of Kreos Capital in August 2023 (the “Kreos Transaction”), offset by repayments of borrowings of a consolidated CLO.

(2)

Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for 2022


(in millions)	December 31, 2021		Realized and Unrealized Gains (Losses)			Purchases		Sales and Maturities			Issuances and Other Settlements(1)			Transfers into Level 3		Transfers out of Level 3			December 31, 2022		Total Net Unrealized Gains (Losses) Included in Earnings(2)
Assets:
Investments:
Debt securities:
Trading	$	17	$	(5	)	$	36	$	(18	)	$	—		$	26	$	(4	)	$	52	$	(5	)
Total debt securities		17		(5	)		36		(18	)		—			26		(4	)		52		(5	)
Private equity		5		(2	)		—		—			—			—		(3	)		—		—
Loans		270		(6	)		59		(61	)		—			9		(23	)		248		(6	)
Total investments	$	292	$	(13	)	$	95	$	(79	)	$	—		$	35	$	(30	)	$	300	$	(11	)
Liabilities:
Other liabilities	$	342	$	3		$	—	$	—		$	(59	)	$	—	$	—		$	280	$	3

(1)

Amounts include proceeds from borrowings of a consolidated CLO and a contingent liability payment related to a prior acquisition.

(2)

Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.

Fair Value of Financial Assets and Financial Liabilities

Disclosures of Fair Value for Financial Instruments Not Held at Fair Value. At December 31, 2023 and 2022, the fair value of the Company’s financial instruments not held at fair value are categorized in the table below.


	December 31, 2023				December 31, 2022
(in millions)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Fair Value Hierarchy
Financial Assets(1):
Cash and cash equivalents	$	8,736	$	8,736	$	7,416	$	7,416	Level 1	(2)(3)
Other assets		80		80		86		86	Level 1	(2)(4)

Financial Liabilities:
Long-term borrowings	$	7,918	$	7,413	$	6,654	$	5,949	Level 2	(5)

(1)

See Note 4, Investments, for further information on investments not held at fair value.

(2)

Cash and cash equivalents are carried at either cost or amortized cost, which approximates fair value due to their short-term maturities.

(3)

At December 31, 2023 and 2022, approximately $3.4 billion and $2.2 billion, respectively, of money market funds were recorded within cash and cash equivalents on the consolidated statements of financial condition. Money market funds are valued based on quoted market prices, or $1.00 per share, which generally is the NAV of the fund.

(4)

At December 31, 2023 and 2022, other assets included cash collateral of approximately $63 million and $69 million, respectively. See Note 8, Derivatives and Hedging for further information on derivatives held by the Company. In addition, other assets included $17 million of restricted cash at both December 31, 2023 and 2022.

(5)

Long-term borrowings are recorded at amortized cost, net of debt issuance costs. The fair value of the long-term borrowings, including the current portion of long-term borrowings, is determined using market prices and the EUR/USD foreign exchange rate at the end of December 2023 and 2022, respectively. See Note 14, Borrowings, for the fair value of each of the Company’s long-term borrowings.

Investments in Certain Entities that Calculate Net Asset Value per Share

The following tables list information regarding all investments that use a fair value measurement to account for both their financial assets and financial liabilities in their calculation of a NAV per share (or equivalent).

December 31, 2023

        (in millions)

        Ref

        Fair Value

        Total
Unfunded
Commitments

        Redemption
Frequency

        Redemption
Notice Period

        Equity method(1):

Hedge funds/funds of hedge funds/other

(a)

588

134

Daily/Monthly (4%)
Quarterly (8%)
N/R (88%)

1 – 90 days

Private equity funds

(b)

1,264

218

N/R

N/R

Real assets funds

(c)

417

210

Quarterly (10%)
N/R (90%)

60 days

Investments related to deferred cash  
   compensation plan

(e)

241

—

Monthly

1 – 90 days

        Consolidated sponsored investment products:

Real assets funds

(c)

154

62

N/R

N/R

Private equity funds

(d)

145

37

N/R

N/R

Hedge funds/other

(a)

168

64

Quarterly (83%)
N/R (17%)

90 days

Total

2,977

725

December 31, 2022

        (in millions)

        Ref

        Fair Value

        Total
Unfunded
Commitments

        Redemption
Frequency

        Redemption
Notice Period

        Equity method(1):

Hedge funds/funds of hedge funds/other

(a)

525

149

Daily/Monthly (23%)
Quarterly (13%)
N/R (64%)

1 – 90 days

Private equity funds

(b)

885

174

N/R

N/R

Real assets funds

(c)

304

304

Quarterly (17%)
N/R (83%)

60 days

        Consolidated sponsored investment products:

Real assets funds

(c)

116

94

N/R

N/R

Private equity funds

(d)

183

37

N/R

N/R

Other funds

17

31

Quarterly

90 days

Total

2,030

789

N/R – Not Redeemable

(1)

Comprised of equity method investments, which include investment companies that account for their financial assets and most financial liabilities under fair value measures; therefore, the Company’s investment in such equity method investees approximates fair value.

(a)

This category includes hedge funds, funds of hedge funds, and other funds that invest primarily in equities, fixed income securities, private credit, opportunistic and mortgage instruments and other third-party hedge funds. The fair values of the investments have been estimated using the NAV of the Company’s ownership interest in partners’ capital. The liquidation period for the investments in the funds that are not subject to redemption is unknown at both December 31, 2023 and 2022.

(b)

This category includes private equity funds that initially invest in nonmarketable securities of private companies, which ultimately may become public in the future. The fair values of these investments have been estimated using capital accounts representing the Company’s ownership interest in the funds and may also include other performance inputs. The Company’s investment in each fund is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying assets of the private equity funds. The liquidation period for the investments in these funds is unknown at both December 31, 2023 and 2022.

(c)

This category includes several real assets funds that invest directly and indirectly in real estate or infrastructure. The fair values of the investments have been estimated using capital accounts representing the Company’s ownership interest in the funds. The Company’s investments that are not subject to redemption or are not currently redeemable are normally returned through distributions and realizations of the underlying assets of the funds. The liquidation period for the investments in the funds that are not subject to redemptions is unknown at both December 31, 2023 and 2022. The total remaining unfunded commitments were $272 million and $398 million at December 31, 2023 and 2022, respectively. The Company’s portion of the total remaining unfunded commitments was $248 million and $364 million at December 31, 2023 and 2022, respectively.

(d)

This category includes the underlying third-party private equity funds within consolidated BlackRock sponsored private equity funds of funds. These investments are not subject to redemption or are not currently redeemable; however, for certain funds, the Company may sell or transfer its interest, which may need approval by the general partner of the underlying funds. Due to the nature of the investments in this category, the Company reduces its investment by distributions that are received through the realization of the underlying assets of the funds. The liquidation period for the underlying assets of these funds is unknown.

(e)

This category includes hedge funds and funds of hedge funds that invest primarily in equities, fixed income securities, mortgage instruments and other third-party hedge funds. The fair values of the investments have been estimated using the NAV of the Company's ownership interest in partners' capital. The investments in hedge funds will be redeemed upon settlement of certain deferred cash compensation liabilities.

Summary of Information Related to Bank Loans and Borrowings of Consolidated CLO Recorded within Investments and Borrowings of Consolidated VIEs Respectively for which Fair Value Option was Elected

In addition, the Company elected the fair value option for bank loans and borrowings of a consolidated CLO, recorded within investments and other liabilities, respectively. The following table summarizes the information related to these bank loans and borrowings at December 31, 2023 and 2022:


	December 31,		December 31,
(in millions)	2023		2022
CLO Bank loans:
Aggregate principal amounts outstanding	$	203	$	238
Fair value		194		234
Aggregate unpaid principal balance in excess of (less than) fair value	$	9	$	4

CLO Borrowings:
Aggregate principal amounts outstanding	$	190	$	245
Fair value	$	180	$	245