Who is Larry Fink - Biography of BlackRock's founder and CEO

Laurence Douglas Fink, commonly known as Larry Fink, is the founder, chairman, and CEO of BlackRock. He co-founded BlackRock with seven partners in 1988. BlackRock is now the world’s largest publicly traded asset management company, with $9.42 trillion in assets under management as of June 30, 2023.

Fink is widely recognized for his influential role and leadership in BlackRock’s development journey. The company has been investing in blockchain companies over time, but in 2023, it gained global attention when it filed an application to establish a Bitcoin ETF fund.

This move, under the leadership of Fink, is considered a major step in the cryptocurrency market to leverage digital assets and enhance the acceptance of Bitcoin and cryptocurrencies. Subsequently, in November 2023, BlackRock applied to establish an ETF Ethereum fund with the U.S. Securities and Exchange Commission (SEC).

When asked about his views on Bitcoin ETF in an interview with Fox Business, Fink said: ‘We are hearing from customers around the world about the demand for cryptocurrencies.’ He noted that there has been an increasing demand for cryptocurrencies among BlackRock’s global customers.

Fink has received numerous awards and recognition throughout his nearly 50-year career. Fortune magazine once honored Fink as one of the ‘World’s Greatest Leaders,’ and he has appeared on Barron’s ‘World’s Best CEOs’ list for 12 consecutive years.

Every year, Fink writes an open letter on the BlackRock website to global CEOs, setting the direction for investors, companies, and most recently, environmentalists. His 2019 open letter called on CEOs worldwide to think beyond profits and focus on sustainability, emphasizing environmental, social, and governance (ESG) goals.

This has earned him the nickname of the ‘new conscience of Wall Street’ from Barron’s, but he has also faced criticism from Warren Buffet, Sam Zell, and others who believe they do not need Fink to guide their companies.

Larry Fink## The early days and family life of Fink

Born on November 2, 1952, Fink grew up in a Jewish family in Van Nuys, California, where his mother was an English professor and his father owned a shoe store. He received a Bachelor of Arts in Political Science in 1974 from the University of California, Los Angeles (UCLA) and a Master of Business Administration (MBA) from the University of California, Berkeley in 1976.

Fink married his high school sweetheart, Lori, in 1974, and the couple has three children. After completing his MBA, he began his career in 1976 at a New York-based investment bank, First Boston. He joined as one of the bank’s first mortgage-backed securities traders and managed its bond division. He played a key role in creating and developing the mortgage-backed securities market in the United States.

Fink had a decade of success at First Boston as a member of the management committee, executive director and co-head of the taxable fixed-income department. He also founded the financial futures and options division and headed the mortgage and real estate products group.

However, in 1986, his department lost 100 million USD due to incorrect predictions about interest rates. This led to significant losses, market humiliation, and his departure from First Boston. Many years later, in 2016, during a speech at UCLA, Fink revealed how the incident at First Boston affected him and emphasized the importance of market evolution. He said, “I believed I understood the market, but I was wrong - because when I wasn’t paying attention, the world had changed.”

In 1988, under the roof of The Blackstone Group, Fink co-founded BlackRock with seven partners: Robert Kapito, Susan Wagner, Barbara Novick, Ben Golub, Hugh Frater, Ralph Schlosstein, and Keith Anderson. BlackRock aims to provide asset management services to institutional clients based on risk management principles.

However, due to the differences between Fink and Blackstone, BlackRock separated from Blackstone in 1994 and by 1999, the company had become a public company. Fink has continued to serve as CEO of BlackRock to this day. He is also a member of the Board of Trustees of New York University (NYU) and the World Economic Forum, as well as co-chair of the Board of Trustees of NYU Langone Health.

In addition, he also participates in the boards of the Museum of Modern Art, the Council on Foreign Relations, and the International Rescue Committee. Fink is also a member of the advisory board at Tsinghua University’s School of Economics and Management in Beijing and the executive committee of the Partnership for New York City.

BlackRock Leadership

As chairman and CEO of BlackRock, Fink is known for his visionary leadership and unprecedented growth, solidifying BlackRock’s position as the world’s largest and most influential investment management company.

Under his leadership, BlackRock has successfully diversified its services and investment strategies. The company has evolved from its initial focus on fixed income to become a comprehensive provider of various investment products, including equities, alternative investments, ETFs, and pending approval for cryptocurrency ETFs.

Fink has supported the application of technology in finance. BlackRock has been a pioneer in using data analysis and technology to make smart investment decisions. For example, Aladdin (Asset, Liability, and Derivative Investment Network) is proprietary software developed by BlackRock for portfolio management.

Aladdin was initially designed at BlackRock as a technology for risk analysis. Over time, it has evolved into an integrated enterprise system supporting a range of risk management systems combined with investment processes.

Under the guidance of Fink and supported by a robust technology platform, BlackRock has executed some important acquisitions.

Fink’s Sustainable Investment Effort

Larry Fink is recognized for his commitment to sustainable investment and social responsibility. In his annual letters to CEOs, he has emphasized the importance of companies integrating ESG goals into their business strategies. He believes that integrating sustainability into investment decisions is a moral and essential imperative for long-term financial success.

Mr. Fink’s support for sustainability is not limited to the financial sector. He has become an influential voice in global discussions on climate change and the role of companies in addressing environmental challenges. Fink’s efforts to promote sustainable practices have made BlackRock one of the leaders in responsible investment.

Fink’s Perspective on Cryptocurrency

Previously, Fink emphasized the need to clarify regulations and expressed concerns about the use of cryptocurrencies for illegal activities. He also highlighted the potential for market manipulation in the cryptocurrency space. Despite acknowledging the innovation and interest surrounding cryptocurrencies and blockchain technology, he maintained a cautious stance on their role in the broader financial context.

In 2017, he said, ‘Bitcoin just shows how big the demand for money laundering is in the world.’ However, he seems to have changed his stance in 2023, when BlackRock applied to establish a fund trading Bitcoin and Ether.

In a July 2023 interview with CNBC, when asked about cryptocurrencies and ETFs, Fink said, ‘We believe we have a fiduciary duty to democratize investing. Over the past five years, an increasing number of global investors have been asking us about the role of cryptocurrencies, and I truly think that many cryptocurrencies are international assets.’ He continued, stating that an ‘international cryptocurrency product’ could overcome the issue of the devaluation of the dollar.

The popularity of Fink in the financial and news industry

As the head of BlackRock, Fink oversees a massive asset portfolio, making decisions that impact global financial markets. His ability to navigate economic upheaval and adapt to changing market conditions has solidified BlackRock’s position as a giant in the industry.

Fink’s influence extends beyond the boardroom. As a leading thinker, he is sought after for his insights into economic and financial issues, contributing to important discussions on the global stage. Major financial media outlets frequently report on his activities and statements.

Your vision of the future of finance includes new assets such as crypto ETFs, sustainability and responsible business practices, setting a benchmark for the investment management industry.