8. Fair Value Disclosures

Fair Value Hierarchy

Assets and liabilities measured at fair value on a recurring basis


December 31, 2025 (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, 2025
Assets:
Investments
Debt securities:
Trading securities	$	—	$	2,782	$	7	$	—	$	—	$	2,789
Held-to-maturity investments		—		—		—		—		507		507
Total debt securities		—		2,782		7		—		507		3,296
Equity securities at FVTNI:
Equity securities/mutual funds		2,146		—		136		—		—		2,282
Equity method:
Equity, fixed income, and multi-asset mutual funds		205		148		—		—		—		353
Hedge funds/funds of hedge funds/other		—		—		—		446		—		446
Private equity funds		—		—		—		510		—		510
Real assets funds		—		—		—		524		—		524
Investments related to deferred cash compensation plans		—		—		—		300		—		300
Total equity method		205		148		—		1,780		—		2,133
Loans held by CIPs		—		—		—		—		—		—
CLOs held at fair value		—		495		73		—		—		568
Federal Reserve Bank stock		—		—		—		—		87		87
Carried interest		—		—		—		—		3,710		3,710
Other investments		—		—		—		1,078		117		1,195
Total investments		2,351		3,425		216		2,858		4,421		13,271
Other assets(3)		113		10		151		—		—		274
Separate account assets		38,688		20,895		—		—		515		60,098
Separate account collateral held under securities lending agreements:
Equity securities		4,194		—		—		—		—		4,194
Debt securities		—		3,728		—		—		—		3,728
Total separate account collateral held under securities lending agreements		4,194		3,728		—		—		—		7,922
Total	$	45,346	$	28,058	$	367	$	2,858	$	4,936	$	81,565
Liabilities:
Separate account collateral liabilities under securities lending agreements	$	4,194	$	3,728	$	—	$	—	$	—	$	7,922
Contingent consideration liabilities		—		—		8,429		—		—		8,429
Other liabilities(4)		—		13		—		—		—		13
Total	$	4,194	$	3,741	$	8,429	$	—	$	—	$	16,364

(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 9, Derivatives and Hedging, for more information).


December 31, 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)		December 31, 2024
Assets:
Investments
Debt securities:
Trading securities	$	—	$	1,744	$	7	$	—	$	—	$	1,751
Held-to-maturity investments		—		—		—		—		547		547
Total debt securities		—		1,744		7		—		547		2,298
Equity securities at FVTNI:
Equity securities/mutual funds		1,950		—		—		—		—		1,950
Equity method:
Equity, fixed income, and multi-asset mutual funds		347		131		—		—		—		478
Hedge funds/funds of hedge funds/other		—		—		—		552		—		552
Private equity funds		—		—		—		1,060		—		1,060
Real assets funds		—		—		—		520		—		520
Investments related to deferred cash compensation plans		—		—		—		173		—		173
Total equity method		347		131		—		2,305		—		2,783
Loans held by CIPs		—		10		135		—		—		145
CLOs held at fair value		—		—		72		—		—		72
Federal Reserve Bank stock		—		—		—		—		93		93
Carried interest		—		—		—		—		1,983		1,983
Other investments		18		—		—		274		153		445
Total investments		2,315		1,885		214		2,579		2,776		9,769
Other assets(3)		—		7		149		—		—		156
Separate account assets		32,933		19,346		—		—		532		52,811
Separate account collateral held under securities lending agreements:
Equity securities		2,719		—		—		—		—		2,719
Debt securities		—		3,340		—		—		—		3,340
Total separate account collateral held under securities lending agreements		2,719		3,340		—		—		—		6,059
Total	$	37,967	$	24,578	$	363	$	2,579	$	3,308	$	68,795
Liabilities:
Separate account collateral liabilities under securities lending agreements	$	2,719	$	3,340	$	—	$	—	$	—	$	6,059
Contingent consideration liabilities		—		—		4,302		—		—		4,302
Other liabilities(4)		—		46		129		—		—		175
Total	$	2,719	$	3,386	$	4,431	$	—	$	—	$	10,536

(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 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 9, 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.

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 December 31, 2025 and 2024.

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 consideration liabilities related to certain acquisitions, which were valued based upon discounted cash flow analyses using unobservable market data inputs or other valuation techniques.

At December 31, 2025 and 2024, the contingent consideration liability related to the GIP Transaction was estimated using the income approach, with certain significant inputs including risk-free discount rates of approximately 3.5% and 4.3%, respectively, as well as current estimates of the timing and amounts of fundraising forecasts, stock and AUM volatility, and correlation between stock price and AUM (Level 3 inputs). At December 31, 2025, the contingent consideration liability related to the HPS Transaction was estimated using the income approach, with certain significant inputs including a risk-free discount rate of approximately 3.7%, as well as estimates of the timing and amounts of fundraising and fee related earnings forecasts, cost of equity, and future stock price performance (Level 3 inputs). Accordingly, changes in key inputs and assumptions described will impact the amount of contingent consideration expense recorded in a reporting period until the contingency is resolved.

Nonrecurring Fair Value Measurements. During the year ended 2024, the Company assessed its intangible assets for impairment during the annual impairment assessment as of July 31, 2024 and concluded that an impairment charge was required for indefinite-lived intangible assets related to certain open-end management contracts, which reduced the carrying value of these management contracts to a fair value of $87 million. See Note 12, Intangible Assets, for more information. The fair value of these contracts was determined using a discounted cash flow analysis. The most sensitive assumptions used to determine present value were growth expectations, revenue basis points, revenue forecast, and the discount rate applied to the cash flow forecast, which are considered Level 3 inputs in the valuation hierarchy.

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for 2025


(in millions)	December 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			December 31, 2025		Total Net Unrealized Gains (Losses) Included in Earnings(2)
Assets:
Investments:
Trading debt securities	$	7	$	—		$	—	$	—		$	—		$	—	$	—		$	7	$	—
Equity securities/mutual funds		—		—			136		—			—			—		—			136		—
Loans		135		(8	)		15		(142	)		—			—		—			—		—
CLOs held at fair value		72		(11	)		10		(3	)		21			—		(16	)		73		(10	)
Total investments		214		(19	)		161		(145	)		21			—		(16	)		216		(10	)
Other assets		149		18			—		—			—			—		(16	)		151		18
Total assets	$	363	$	(1	)	$	161	$	(145	)	$	21		$	—	$	(32	)	$	367	$	8


(in millions)	December 31, 2024		Realized and Unrealized (Gains) Losses(3)			Purchases		Sales and Maturities			Issuances and Other Settlements(1)			Transfers into Level 3		Transfers out of Level 3			December 31, 2025		Total Net Unrealized (Gains) Losses Included in Earnings(2)(3)
Liabilities:
Contingent consideration liabilities	$	4,302	$	729		$	—	$	—		$	3,398		$	—	$	—		$	8,429	$	729
Other liabilities		129		(17	)		—		—			(112	)		—		—			—		—
Total liabilities	$	4,431	$	712		$	—	$	—		$	3,286		$	—	$	—		$	8,429	$	729

(1)

Issuances and other settlements amounts include acquired CLOs and a contingent liability primarily related to the HPS Transaction, and 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.

(3)

Amount includes changes in fair value of contingent consideration recorded within expense on the consolidated statements of income.

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for 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			December 31, 2024		Total Net Unrealized Gains (Losses) Included in Earnings(2)
Assets:
Investments:
Trading debt securities	$	42	$	3		$	35	$	(1	)	$	—		$	—	$	—		$	79	$	3
Loans		175		7			402		(455	)		—			12		(6	)		135		7
Total investments		217		10			437		(456	)		—			12		(6	)		214		10
Other assets		120		(8	)		37		—			—			—		—			149		(8	)
Total assets	$	337	$	2		$	474	$	(456	)	$	—		$	12	$	(6	)	$	363	$	2


(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			December 31, 2024		Total Net Unrealized (Gains) Losses Included in Earnings(2)
Liabilities:
Contingent consideration liabilities	$	99	$	(42	)	$	—	$	—		$	4,245		$	—	$	—		$	4,302	$	(42	)
Other liabilities		180		7			—		—			(58	)		—		—			129		7
Total liabilities	$	279	$	(35	)	$	—	$	—		$	4,187		$	—	$	—		$	4,431	$	(35	)

(1)

Issuances and other settlements amounts include contingent consideration liabilities related to the SpiderRock and GIP Transactions and 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 - CIPs 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 December 31, 2025 and 2024, the fair value of the Company’s financial instruments not held at fair value are categorized in the table below:


	December 31, 2025				December 31, 2024
(in millions)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Fair Value Hierarchy
Financial assets(1):
Cash and cash equivalents	$	11,468	$	11,468	$	12,762	$	12,762	Level 1	(2)(3)
Other assets		103		103		86		86	Level 1	(2)(4)

Financial liabilities:
Long-term borrowings	$	12,768	$	12,546	$	12,314	$	11,680	Level 2	(5)
Other liabilities		302		302		—		—	Level 2	(6)

(1)

See Note 5, Investments, for further information on investments not held at fair value.

(2)

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

(3)

At December 31, 2025 and 2024, approximately $5.3 billion and $6.2 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, 2025 and 2024, other assets included cash collateral of approximately $81 million and $69 million, respectively. See Note 9, Derivatives and Hedging for further information on derivatives held by the Company. In addition, other assets included $22 million and $17 million of restricted cash at December 31, 2025 and 2024, respectively.

(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 2025 and 2024, respectively. See Note 15, Borrowings, for the fair value of each of the Company’s long-term borrowings.

(6)

Other liabilities include repurchase agreements related to CLO financing arrangements to finance portions of investments in certain CLOs managed by the Company. Repurchase agreements were recorded at amortized cost, which approximates fair value, with maturity dates ranging from 2034 to 2039.

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).

December 31, 2025

         (in millions)

         Ref

         Fair Value

         Total
Unfunded
Commitments

         Redemption
Frequency

         Redemption
Notice Period

         Equity method(1):

Hedge funds/funds of hedge funds/other

(a)

446

150

Quarterly (12%)
N/R (88%)

1 – 90 days

Private equity funds

(b)

510

225

N/R

N/R

Real assets funds

(c)

524

1,870

Quarterly (7%)
N/R (93%)

60 days

Investments related to deferred cash  
   compensation plan

(d)

300

—

Monthly

1 – 90 days

         Other investments:

Private credit fund

(a)

140

—

Quarterly

30 days

         Consolidated sponsored investment products:

Real assets funds

(c)

372

29

N/R

N/R

Private equity funds

(e)

181

34

N/R

N/R

Hedge funds/other

(a)

385

48

Quarterly (89%)
N/R (11%)

60 – 90 days

Total

2,858

2,356

December 31, 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)

552

138

Daily/Monthly (2%)
Quarterly (10%)
N/R (88%)

1 – 90 days

Private equity funds

(b)

1,060

227

N/R

N/R

Real assets funds

(c)

520

710

Quarterly (7%)
N/R (93%)

60 days

Investments related to deferred cash  
   compensation plan

(d)

173

—

Monthly

1 – 90 days

         Consolidated sponsored investment products:

Real assets funds

(c)

175

40

N/R

N/R

Private equity funds

(e)

7

42

N/R

N/R

Hedge funds/other

(a)

92

58

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

90 days

Total

2,579

1,215

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, 2025 and 2024.

(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, 2025 and 2024.

(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, 2025 and 2024. The total remaining unfunded commitments were $1.9 billion and $750 million at December 31, 2025 and 2024, respectively. The Company’s portion of the total remaining unfunded commitments was $1.9 billion and $736 million at December 31, 2025 and 2024, 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 December 31, 2025 and 2024, the Company elected the fair value option for certain investments in CLOs of approximately $568 million and $72 million, respectively, reported within investments.

In addition, the Company had elected the fair value option for the bank loans and borrowings of a previously consolidated CLO, which was recorded within investments and other liabilities, respectively. The following table summarizes the information related to these bank loans and borrowings at December 31, 2025 and 2024:


	December 31,		December 31,
(in millions)	2025		2024
CLO loans:
Aggregate principal amounts outstanding	$	—	$	156
Fair value		—		141
Aggregate unpaid principal balance in excess of (less than) fair value	$	—	$	15

CLO borrowings:
Aggregate principal amounts outstanding	$	—	$	146
Fair value		—		129
Aggregate unpaid principal balance in excess of (less than) fair value	$	—	$	17

During the year ended December 31, 2025 and 2024, the net gains (losses) from the change in fair value of the bank loans and borrowings held by the previously consolidated CLO were not material and were recorded in net gain (loss) on the consolidated statements of income. The change in fair value of the assets and liabilities included interest income and expense, respectively.

Historical Timeline

Fiscal Year	Filed
2025	Feb 25, 2026	Showing above
2024	Feb 25, 2025

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

BlackRock, Inc. Fair Value Disclosure

Historical Timeline

About Fair Value Disclosures

Other Available Disclosures