December 31, 2021

(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,

2021

Assets:

Investments:

Debt securities:

Held-to-maturity investments

$

—

$

—

$

—

$

—

$

430

$

430

Trading securities

—

1,169

17

—

—

1,186

Total debt securities

—

1,169

17

—

430

1,616

Equity securities at FVTNI:

Equity securities/mutual funds

1,738

—

—

—

—

1,738

Equity method:

Equity and fixed income mutual funds

245

—

—

—

—

245

Hedge funds/funds of hedge funds

—

—

—

369

—

369

Private equity funds

—

—

—

846

—

846

Real assets funds

—

—

—

234

—

234

Total equity method

245

—

—

1,449

—

1,694

Bank loans

—

14

270

—

—

284

Federal Reserve Bank Stock

—

—

—

—

96

96

Carried interest

—

—

—

—

1,555

1,555

Other investments⁽³⁾

—

—

5

96

178

279

Total investments

1,983

1,183

292

1,545

2,259

7,262

Other assets⁽⁴⁾

195

39

—

—

—

234

Separate account assets

54,675

30,786

—

—

765

86,226

Separate account collateral held under securities lending

   agreements:

Equity securities

3,717

—

—

—

—

3,717

Debt securities

—

3,364

—

—

—

3,364

Total separate account collateral held under

   securities lending agreements

3,717

3,364

—

—

—

7,081

Total

$

60,570

$

35,372

$

292

$

1,545

$

3,024

$

100,803

Liabilities:

Separate account collateral liabilities under

   securities lending agreements

$

3,717

$

3,364

$

—

$

—

$

—

$

7,081

Other liabilities⁽⁵⁾

—

26

342

—

—

368

Total

$

3,717

$

3,390

$

342

$

—

$

—

$

7,449

⁽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 3 amounts primarily include direct investments in private equity companies held by consolidated private equity funds.

⁽⁴⁾

Level 1 amount includes a minority investment in a publicly traded company.  

⁽⁵⁾ 

Level 2 amount primarily includes fair value of derivatives (See Note 9, Derivatives and Hedging, for more information). Level 3 amounts primarily include 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 (see Note 16, Commitments and Contingencies, for more information).

December 31, 2020

(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,

2020

Assets:

Investments:

Debt securities:

Held-to-maturity investments

$

—

$

—

$

—

$

—

$

310

$

310

Trading securities

—

1,953

11

—

—

1,964

Total debt securities

—

1,953

11

—

310

2,274

Equity securities at FVTNI:

Equity securities/mutual funds

2,317

—

—

—

—

2,317

Equity method:

Equity and fixed income mutual funds

235

—

—

—

—

235

Hedge funds/funds of hedge funds

—

—

—

313

—

313

Private equity funds

—

—

—

315

—

315

Real assets funds

—

—

—

218

—

218

Total equity method

235

—

—

846

—

1,081

Bank loans

—

16

232

—

—

248

Federal Reserve Bank Stock

—

—

—

—

94

94

Carried interest

—

—

—

—

627

627

Other investments⁽³⁾

—

—

9

94

175

278

Total investments

2,552

1,969

252

940

1,206

6,919

Other assets⁽⁴⁾

205

13

—

—

—

218

Separate account assets

71,392

32,404

—

—

867

104,663

Separate account collateral held under securities lending

   agreements:

Equity securities

13,126

—

—

—

—

13,126

Debt securities

—

3,381

—

—

—

3,381

Total separate account collateral held under

   securities lending agreements

13,126

3,381

—

—

—

16,507

Total

$

87,275

$

37,767

$

252

$

940

$

2,073

$

128,307

Liabilities:

Separate account collateral liabilities under

   securities lending agreements

$

13,126

$

3,381

$

—

$

—

$

—

$

16,507

Other liabilities⁽⁵⁾

—

68

272

—

—

340

Total

$

13,126

$

3,449

$

272

$

—

$

—

$

16,847

⁽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 3 amounts include direct investments in private equity companies held by consolidated private equity funds.

⁽⁴⁾

Level 1 amount includes a minority investment in a publicly traded company.

⁽⁵⁾

Level 3 amount primarily includes contingent liabilities related to certain acquisitions (see Note 16, Commitments and Contingencies, for more information) and borrowings of a consolidated CLO classified based on the significance of unobservable inputs used for calculating the fair value of consolidated CLO assets.

(in millions)

December 31,

2020

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,

2021

Total Net

Unrealized

Gains (Losses)

Included in

Earnings⁽²⁾

Assets:

Investments:

Debt securities:

Trading

$

11

$

2

$

43

$

(22

)

$

—

$

—

$

(17

)

$

17

$

2

Total debt securities

11

2

43

(22

)

—

—

(17

)

17

2

Private equity

9

1

—

—

—

—

(5

)

5

1

Bank loans

232

—

46

(5

)

—

15

(18

)

270

—

Total investments

252

3

89

(27

)

—

15

(40

)

292

3

Total Level 3 assets

$

252

$

3

$

89

$

(27

)

$

—

$

15

$

(40

)

$

292

$

3

Liabilities:

Other liabilities

$

272

$

(34

)

$

—

$

—

$

36

$

—

$

—

$

342

$

(34

)

Total Level 3 liabilities

$

272

$

(34

)

$

—

$

—

$

36

$

—

$

—

$

342

$

(34

)

(1)

Amounts primarily include net proceeds from 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.

(in millions)

December 31,

2019

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,

2020

Total Net

Unrealized

Gains (Losses)

Included in

Earnings⁽²⁾

Assets:

Investments:

Debt securities:

Trading

$

8

$

—

$

3

$

—

$

—

$

—

$

—

$

11

$

—

Total debt securities

8

—

3

—

—

—

—

11

—

Private equity

9

—

8

(8

)

—

—

—

9

—

Bank loans

177

—

75

(34

)

—

20

(6

)

232

—

Total investments

194

—

86

(42

)

—

20

(6

)

252

—

Total Level 3 assets

$

194

$

—

$

86

$

(42

)

$

—

$

20

$

(6

)

$

252

$

—

Liabilities:

Other liabilities

$

388

$

(23

)

$

—

$

—

$

(139

)

$

—

$

—

$

272

$

(5

)

Total Level 3 liabilities

$

388

$

(23

)

$

—

$

—

$

(139

)

$

—

$

—

$

272

$

(5

)

(1)

Amounts include contingent liability payments related to certain acquisitions and proceeds from 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.

December 31, 2021

December 31, 2020

(in millions)

Carrying

Amount

Estimated

Fair Value

Carrying

Amount

Estimated

Fair Value

Fair Value

Hierarchy

Financial Assets⁽¹⁾:

Cash and cash equivalents

$

9,323

$

9,323

$

8,664

$

8,664

Level 1

^{(2) (3)}

Other assets

22

22

69

69

Level 1

^{(2) (4)}

Financial Liabilities:

Long-term borrowings

7,446

7,735

7,264

7,883

Level 2

⁽⁵⁾

(1)

See Note 5, 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, 2021 and 2020, approximately $2,409 million and $1,249 million, 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)

Other assets include restricted cash and cash collateral deposited with certain derivative counterparties.

(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 at the end of December 2021 and 2020, respectively. See Note 15, Borrowings, for the fair value of each of the Company’s long-term borrowings.

(in millions)

Ref

Fair Value

Total

Unfunded

Commitments

Redemption

Frequency

Redemption

Notice Period

Equity method:⁽¹⁾

Hedge funds/funds of hedge funds

(a)

$

369

$

141

Daily/Monthly (20%)

Quarterly (20%)

N/R (60%)

1 – 90 days

Private equity funds

(b)

846

153

N/R

N/R

Real assets funds

(c)

234

245

Quarterly (20%)

N/R (80%)

60 days

Consolidated sponsored investment products:

Real assets funds

(c)

90

101

N/R

N/R

Other funds

6

25

N/R

N/R

Total

$

1,545

$

665

(in millions)

Ref

Fair Value

Total

Unfunded

Commitments

Redemption

Frequency

Redemption

Notice Period

Equity method:⁽¹⁾

Hedge funds/funds of hedge funds

(a)

$

313

$

101

Daily/Monthly (21%)

Quarterly (21%)

N/R (58%)

1 – 90 days

Private equity funds

(b)

315

372

N/R

N/R

Real assets funds

(c)

218

205

Quarterly (31%)

N/R (69%)

60 days

Consolidated sponsored investment products:

Private equity funds of funds

(d)

19

7

N/R

N/R

Real assets funds

(c)

75

94

N/R

N/R

Total

$

940

$

779

(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 and funds of hedge funds that invest primarily in equities, fixed income securities, distressed 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, 2021 and 2020.

(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 as well as 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, 2021 and 2020.

(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, 2021 and 2020. The total remaining unfunded commitments to real assets funds were $346 million and $299 million at December 31, 2021 and 2020, respectively. The Company’s portion of the total remaining unfunded commitments was $298 million and $267 million at December 31, 2021 and 2020, 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.

December 31,

December 31,

(in millions)

2021

2020

CLO Bank loans:

Aggregate principal amounts outstanding

$

281

$

250

Fair value

284

248

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

$

(3

)

$

2

CLO Borrowings:

Aggregate principal amounts outstanding

$

275

$

244

Fair value

$

278

$

246