v3.24.2.u1
Fair Value Disclosures
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Disclosures

7. Fair Value Disclosures

Fair Value Hierarchy

Assets and liabilities measured at fair value on a recurring basis

June 30, 2024
(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)

 

 

June 30,
 2024

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading securities

$

—

 

 

$

1,869

 

 

$

82

 

 

$

—

 

 

$

—

 

 

$

1,951

 

Held-to-maturity investments

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

582

 

 

 

582

 

Total debt securities

 

—

 

 

 

1,869

 

 

 

82

 

 

 

—

 

 

 

582

 

 

 

2,533

 

Equity securities at FVTNI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities/mutual funds

 

2,310

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,310

 

Equity method:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity, fixed income, and multi-asset
   mutual funds

 

249

 

 

 

117

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

366

 

Hedge funds/funds of hedge
   funds/other

 

—

 

 

 

—

 

 

 

—

 

 

 

595

 

 

 

—

 

 

 

595

 

Private equity funds

 

—

 

 

 

—

 

 

 

—

 

 

 

1,096

 

 

 

—

 

 

 

1,096

 

Real assets funds

 

—

 

 

 

—

 

 

 

—

 

 

 

441

 

 

 

—

 

 

 

441

 

Investments related to deferred
   cash compensation plans

 

—

 

 

 

—

 

 

 

—

 

 

 

171

 

 

 

—

 

 

 

171

 

Total equity method

 

249

 

 

 

117

 

 

 

—

 

 

 

2,303

 

 

 

—

 

 

 

2,669

 

Loans held by CIPs

 

—

 

 

 

13

 

 

 

225

 

 

 

—

 

 

 

—

 

 

 

238

 

Federal Reserve Bank Stock

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

92

 

 

 

92

 

Carried interest

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,917

 

 

 

1,917

 

Other investments

 

29

 

 

 

—

 

 

 

—

 

 

 

250

 

 

 

178

 

 

 

457

 

Total investments

 

2,588

 

 

 

1,999

 

 

 

307

 

 

 

2,553

 

 

 

2,769

 

 

 

10,216

 

Other assets(3)

 

147

 

 

 

1

 

 

 

150

 

 

 

—

 

 

 

—

 

 

 

298

 

Separate account assets

 

33,898

 

 

 

20,146

 

 

 

—

 

 

 

—

 

 

 

379

 

 

 

54,423

 

Separate account collateral held under
 securities lending agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

1,523

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,523

 

Debt securities

 

—

 

 

 

3,507

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,507

 

Total separate account collateral held
   under securities lending agreements

 

1,523

 

 

 

3,507

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,030

 

Total

$

38,156

 

 

$

25,653

 

 

$

457

 

 

$

2,553

 

 

$

3,148

 

 

$

69,967

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separate account collateral
   liabilities under securities
   lending agreements

$

1,523

 

 

$

3,507

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

5,030

 

Other liabilities(4)

 

—

 

 

 

18

 

 

 

298

 

 

 

—

 

 

 

—

 

 

 

316

 

Total

$

1,523

 

 

$

3,525

 

 

$

298

 

 

$

—

 

 

$

—

 

 

$

5,346

 

 

(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, and carried interest.
(3)
Level 1 amount includes a minority investment in a publicly traded company. Level 3 amount includes corporate minority private debt investments 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, 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 held by CIPs

 

—

 

 

 

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, and carried interest.
(3)
Level 1 amount includes a minority investment in a publicly traded company. Level 3 amount includes a corporate minority 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 a contingent liability related to certain acquisitions.

Level 3 Assets. Level 3 assets predominantly include investments in nonconsolidated CLOs, loans of consolidated CIPs, and corporate minority private debt investments. Investments in CLOs and loans were valued based on single-broker nonbinding quotes or quotes from pricing services which use significant unobservable inputs. BlackRock's corporate minority private debt investments were primarily valued using the income approach by discounting the expected cash flows to a single present value. For investments utilizing a discounted cashflow valuation technique, an increase (decrease) in the discount rate or risk premium in isolation could have resulted in a significantly lower (higher) fair value measurement as of June 30, 2024 and December 31, 2023.

Level 3 Liabilities. Level 3 liabilities primarily include borrowings of a consolidated CLO, which were valued based on the fair value of the assets of the consolidated CLO less the fair value of the Company’s economic interest in the CLO, as well as contingent liabilities related to certain acquisitions, which were valued based upon discounted cash flow analyses using unobservable market data inputs, or other valuation techniques.

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended June 30, 2024

(in millions)

 

March 31,
 2024

 

 

Realized
and
Unrealized
Gains
(Losses)

 

 

Purchases

 

 

Sales and
Maturities

 

 

Issuances and
Other
Settlements(1)

 

 

Transfers
into
Level 3

 

 

Transfers
out of
Level 3

 

 

June 30,
 2024

 

 

Total Net
Unrealized
Gains (Losses)
Included in
Earnings(2)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading

 

$

48

 

 

$

5

 

 

$

29

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

82

 

 

$

5

 

Total debt securities

 

 

48

 

 

 

5

 

 

 

29

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

82

 

 

 

5

 

Loans

 

 

525

 

 

 

(2

)

 

 

33

 

 

 

(337

)

 

 

—

 

 

 

6

 

 

 

—

 

 

 

225

 

 

 

(2

)

Total investments

 

 

573

 

 

 

3

 

 

 

62

 

 

 

(337

)

 

 

—

 

 

 

6

 

 

 

—

 

 

 

307

 

 

 

3

 

Other assets

 

 

138

 

 

 

—

 

 

 

12

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

150

 

 

 

—

 

Total assets

 

$

711

 

 

$

3

 

 

$

74

 

 

$

(337

)

 

$

—

 

 

$

6

 

 

$

—

 

 

$

457

 

 

$

3

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

$

258

 

 

$

(3

)

 

$

—

 

 

$

—

 

 

$

37

 

 

$

—

 

 

$

—

 

 

$

298

 

 

$

(3

)

 

(1)
Issuances and other settlements amount includes a contingent liability in connection with the acquisition of the remaining equity interest in SpiderRock Advisors ("SRA") in May 2024 (the "SpiderRock Transaction"), partially 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 the Six Months Ended June 30, 2024

(in millions)

 

December 31,
2023

 

 

Realized
and
Unrealized
Gains
(Losses)

 

 

Purchases

 

 

Sales and
Maturities

 

 

Issuances and
Other
Settlements(1)

 

 

Transfers
into
Level 3

 

 

Transfers
out of
Level 3

 

 

June 30,
2024

 

 

Total Net
Unrealized
Gains (Losses)
Included in
Earnings(2)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading

 

$

42

 

 

$

4

 

 

$

36

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

82

 

 

$

4

 

Total debt securities

 

 

42

 

 

 

4

 

 

 

36

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

82

 

 

 

4

 

Loans

 

 

175

 

 

 

—

 

 

 

398

 

 

 

(354

)

 

 

—

 

 

 

9

 

 

 

(3

)

 

 

225

 

 

 

—

 

Total investments

 

 

217

 

 

 

4

 

 

 

434

 

 

 

(354

)

 

 

—

 

 

 

9

 

 

 

(3

)

 

 

307

 

 

 

4

 

Other assets

 

 

120

 

 

 

(7

)

 

 

37

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

150

 

 

 

(7

)

Total assets

 

$

337

 

 

$

(3

)

 

$

471

 

 

$

(354

)

 

$

—

 

 

$

9

 

 

$

(3

)

 

$

457

 

 

$

(3

)

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

$

279

 

 

$

3

 

 

$

—

 

 

$

—

 

 

$

22

 

 

$

—

 

 

$

—

 

 

$

298

 

 

$

3

 

 

(1)
Issuances and other settlements amount includes a contingent liability in connection with the SpiderRock Transaction partially 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 the Three Months Ended June 30, 2023

(in millions)

 

March 31,
2023

 

 

Realized
and
Unrealized
Gains
(Losses)

 

 

Purchases

 

 

Sales and
Maturities

 

 

Issuances and
Other
Settlements(1)

 

 

Transfers
into
Level 3

 

 

Transfers
out of
Level 3

 

 

June 30,
2023

 

 

Total Net
Unrealized
Gains (Losses)
Included in
Earnings(2)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading

 

$

55

 

 

$

(1

)

 

$

4

 

 

$

(17

)

 

$

—

 

 

$

—

 

 

$

—

 

 

$

41

 

 

$

(1

)

Total debt securities

 

 

55

 

 

 

(1

)

 

 

4

 

 

 

(17

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

41

 

 

 

(1

)

Loans

 

 

247

 

 

 

17

 

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

5

 

 

 

(2

)

 

 

266

 

 

 

17

 

Total investments

 

 

302

 

 

 

16

 

 

 

4

 

 

 

(18

)

 

 

—

 

 

 

5

 

 

 

(2

)

 

 

307

 

 

 

16

 

Other assets

 

 

—

 

 

 

—

 

 

 

109

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

109

 

 

 

—

 

Total assets

 

$

302

 

 

$

16

 

 

$

113

 

 

$

(18

)

 

$

—

 

 

$

5

 

 

$

(2

)

 

$

416

 

 

$

16

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

$

257

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(3

)

 

$

—

 

 

$

—

 

 

$

254

 

 

$

—

 

 

 

(1)
Amounts include 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 the Six Months Ended June 30, 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

 

 

June 30,
2023

 

 

Total Net
Unrealized
Gains (Losses)
Included in
Earnings(2)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading

 

$

52

 

 

$

—

 

 

$

6

 

 

$

(17

)

 

$

—

 

 

$

—

 

 

$

—

 

 

$

41

 

 

$

—

 

Total debt securities

 

 

52

 

 

 

—

 

 

 

6

 

 

 

(17

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

41

 

 

 

—

 

Loans

 

 

248

 

 

 

23

 

 

 

12

 

 

 

(21

)

 

 

—

 

 

 

10

 

 

 

(6

)

 

 

266

 

 

 

23

 

Total investments

 

 

300

 

 

 

23

 

 

 

18

 

 

 

(38

)

 

 

—

 

 

 

10

 

 

 

(6

)

 

 

307

 

 

 

23

 

Other assets

 

 

—

 

 

 

—

 

 

 

109

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

109

 

 

 

—

 

Total assets

 

$

300

 

 

$

23

 

 

$

127

 

 

$

(38

)

 

$

—

 

 

$

10

 

 

$

(6

)

 

$

416

 

 

$

23

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

$

280

 

 

$

4

 

 

$

—

 

 

$

—

 

 

$

(22

)

 

$

—

 

 

$

—

 

 

$

254

 

 

$

4

 

 

 

(1)
Amounts include 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.

Realized and Unrealized Gains (Losses) for Level 3 Assets and Liabilities. Realized and unrealized gains (losses) recorded for Level 3 assets and liabilities are reported in nonoperating income (expense) or AOCI for corporate minority private debt investments. A portion of net income (loss) related to securities held by CIPs is allocated to NCI to reflect net income (loss) not attributable to the Company.

Transfers in and/or out of Levels. Transfers in and/or out of levels are reflected when significant inputs, including market inputs or performance attributes, used for the fair value measurement become observable/unobservable.

Disclosures of Fair Value for Financial Instruments Not Held at Fair Value. At June 30, 2024 and December 31, 2023, the fair value of the Company’s financial instruments not held at fair value are categorized in the table below:

 

June 30, 2024

 

 

December 31, 2023

 

 

 

 

(in millions)

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Fair Value
Hierarchy

 

Financial Assets(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

10,228

 

 

$

10,228

 

 

$

8,736

 

 

$

8,736

 

 

Level 1

(2)(3)

Other assets

$

80

 

 

$

80

 

 

$

80

 

 

$

80

 

 

Level 1

(2)(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term borrowings

$

9,857

 

 

$

9,215

 

 

$

7,918

 

 

$

7,413

 

 

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 June 30, 2024 and December 31, 2023, approximately $5.2 billion and $3.4 billion, respectively, of money market funds were recorded within cash and cash equivalents on the condensed 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 both June 30, 2024 and December 31, 2023, other assets included cash collateral of approximately $63 million. 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 June 30, 2024 and December 31, 2023.
(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 June 2024 and December 2023, respectively. See Note 13, Borrowings, for the fair value of each of the Company’s long-term borrowings.

Investments in Certain Entities that Calculate NAV Per Share

As a practical expedient to value certain investments that do not have a readily determinable fair value and have attributes of an investment company, the Company uses NAV as the fair value. 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).

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

Ref

 

Fair Value

 

 

Total
Unfunded
Commitments

 

 

Redemption
Frequency

 

Redemption
Notice Period

Equity method(1):

 

 

 

 

 

 

 

 

 

 

 

 

Hedge funds/funds of hedge
  funds/other

 

(a)

 

$

595

 

 

$

133

 

 

Daily/Monthly (11%)
Quarterly (9%)
N/R (80%)

 

1 – 90 days

Private equity funds

 

(b)

 

 

1,096

 

 

 

233

 

 

N/R

 

N/R

Real assets funds

 

(c)

 

 

441

 

 

 

236

 

 

Quarterly (8%)
N/R (92%)

 

60 days

Investments related to deferred
   cash compensation plan

 

(d)

 

 

171

 

 

 

—

 

 

Monthly

 

1 – 90 days

Consolidated sponsored
   investment products:

 

 

 

 

 

 

 

 

 

 

 

 

Real assets funds

 

(c)

 

 

161

 

 

 

58

 

 

N/R

 

N/R

Private equity funds

 

(e)

 

 

6

 

 

 

19

 

 

N/R

 

N/R

Hedge funds/other

 

(a)

 

 

83

 

 

 

60

 

 

Quarterly (64%)
N/R (36%)

 

90 days

Total

 

 

 

$

2,553

 

 

$

739

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(d)

 

 

241

 

 

 

—

 

 

Monthly

 

1 – 90 days

Consolidated sponsored
   investment products:

 

 

 

 

 

 

 

 

 

 

 

 

Real assets funds

 

(c)

 

 

154

 

 

 

62

 

 

N/R

 

N/R

Private equity funds

 

(e)

 

 

145

 

 

 

37

 

 

N/R

 

N/R

Hedge funds/other

 

(a)

 

 

168

 

 

 

64

 

 

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

 

90 days

Total

 

 

 

$

2,977

 

 

$

725

 

 

 

 

 

 

 

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 June 30, 2024 and December 31, 2023.
(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 June 30, 2024 and December 31, 2023.
(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 June 30, 2024 and December 31, 2023. The total remaining unfunded commitments were $294 million and $272 million at June 30, 2024 and December 31, 2023, respectively. The Company’s portion of the total remaining unfunded commitments was $267 million and $248 million at June 30, 2024 and December 31, 2023, respectively.
(d)
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.
(e)
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.

Fair Value Option

At June 30, 2024 and December 31, 2023, the Company elected the fair value option for certain investments in CLOs of approximately $75 million and $42 million, respectively, reported within investments.

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 June 30, 2024 and December 31, 2023:

 

 

June 30,

 

 

December 31,

 

(in millions)

 

2024

 

 

2023

 

CLO loans:

 

 

 

 

 

 

Aggregate principal amounts outstanding

 

$

190

 

 

$

203

 

Fair value

 

 

176

 

 

 

194

 

Aggregate unpaid principal balance in excess of (less than) fair value

 

$

14

 

 

$

9

 

 

 

 

 

 

 

CLO Borrowings:

 

 

 

 

 

 

Aggregate principal amounts outstanding

 

$

175

 

 

$

190

 

Fair value

 

$

162

 

 

$

180

 

 

At June 30, 2024, the principal amounts outstanding of the borrowings issued by the consolidated CLO mature in 2030, and may be repaid prior to maturity at any time.

During the three and six months ended June 30, 2024 and 2023, the net gains (losses) from the change in fair value of the bank loans and borrowings held by the consolidated CLO were not material and were recorded in net gain (loss) on the condensed consolidated statements of income. The change in fair value of the assets and liabilities included interest income and expense, respectively.