BlackRock vs The Blackstone Group: Where Should You Invest?
- Where should you invest your money? Discover more about the services BlackRock and The Blackstone Group offer and what sets them apart from each other.
Choosing between investment firms can be a tough decision. After all, you want to be sure your retirement income is secure and provides the returns that you expect.
BlackRock and The Blackstone Group are two of the largest investment firms in the world, but how do they differ? Read on to learn more about each company and what they offer so you can determine if one might be right for your future investments.
What Products Do BlackRock and The Blackstone Group Offer?
BlackRock Products and Services
Blackrock is a traditional investment firm that offers both open- and closed-ended investments. Some of its products and services include:
- an iShares ETF management tool
- Stocks and bonds
- Mutual funds
- Alternative investments, such as private assets and hedge funds
- Retirement planning
BlackRock caters to individuals and institutions with its mixture of investment services.
The Blackstone Group Products and Services
The Blackstone Group is a more exclusive firm offering alternative investments such as:
- Private equity
- Real estate
- Hedge fund solutions
- Credit and insurance
It has fewer managed assets globally than BlackRock, but it’s a niche firm. As such, it works only with high-net-worth individuals and financial institutions.
What Fees Does BlackRock charge?
The fees associated with investing vary depending on which products you use and how much you invest.
Equity funds, multi-asset funds, fixed income funds and cash investments all have their own fee schedules. Each may have an initial sales charge up to around 5% and an ongoing trail of around 0.25% that starts immediately after you make a purchase. As the investment amount increases, percentage fees decrease. For example, invest less than $25,000 in equity funds for a 5.25% sales charge — invest more than $750,000, and the charge drops to 1.5%. Index and cash investments pose no sales charge.
What Fees Does The Blackstone Group charge?
Although Blackstone doesn't make its fee structure clear on its website, it's understood that it charges management and performance fees.
BlackRock vs The Blackstone Group: Which Is the Bigger Company?
Technically speaking, BlackRock is the largest of the two companies, with more than 16,000 employees and over $10 trillion in assets under management (AUM), compared with Blackstone, which has just over 3,000 employees and $900 billion AUM in assets.
However, the two companies aren’t really comparable by numbers alone, as they provide services to different sectors of the market and are both strong investment firms in their own rights.
BlackRock is the world's largest asset manager and Blackstone Group is the world’s largest private equity firm.
Are BlackRock and The Blackstone Group Connected?
BlackRock and The Blackstone Group are often confused as they share similar names and origins. Founded in 1985, both companies fell under an umbrella company called Blackstone Financial Management, a mergers and acquisitions company. In 1988, BlackRock separated from the parent company and focused on risk management. Today, they're now completely separate companies with different offerings.
BlackRock and The Blackstone Group: Which Is Best For Investing?
BlackRock is a more accessible asset management company with virtually no barrier to entry. Services such as iShares lets even new investors invest in ETFs. The main website provides a comprehensive education section to help any individual learn more about investing. Its fee list is fairly transparent, too. You may want to consider BlackRock if you’re looking for a more traditional investment firm.
The Blackstone Group caters mostly to high-net-worth individuals and exclusively manages alternative assets. If you require a more exclusive approach to investing, this could be a good fit.