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How Do You Break Into BlackRock or Blackstone? 5 Proven Steps for Landing Your Dream Finance Job！
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What is the difference between BlackRock and Blackstone?
BlackRock and Blackstone are both giants in the financial industry, but they actually share a deep connection. When BlackRock was established in 1988 by current CEO Larry Fink and others, it was initially called "Blackstone Financial Management."
In 1994, Blackstone sold its mortgage securities division, which had $23 billion in assets under management, to PNC Bank for $240 million. This mortgage securities division was the predecessor of BlackRock. From there, over 36 years, it has grown into a massive asset management company managing $11.5 trillion (approximately 1,641 trillion yen), far exceeding Japan's national budget.
Business Model Differences
The two companies went on to follow completely different paths:
【BlackRock】
- Traditional asset management company
- Approximately $10 trillion in assets under management (world's largest)
- Mainly manages ETFs, mutual funds, and bonds
- Broad client base from individual to institutional investors
- Fee-based revenue model (approximately 1% of assets under management)
【Blackstone】
- Specializes in alternative investments
- Approximately $350 billion in assets under management
- Focuses on private equity, real estate, and hedge funds
- Main clients are high-net-worth individuals and institutional investors
- Higher fee structure (2% plus performance fees)
The biggest difference between the two is whether they are an asset manager or a PE fund.
BlackRock is the world's largest provider of ETFs and investment trusts. Their core products are traditional investment vehicles such as ETFs and mutual funds under the iShares brand. They serve a wide range of clients from pension funds, sovereign wealth funds, and financial institutions to individual investors through ETFs.
On the other hand, Blackstone takes a completely different approach as an asset manager specializing in alternative investments. While their assets under management are about 1/30th of BlackRock's at approximately $350 billion, they pursue more aggressive investment strategies centered on private equity and real estate investments.
Blackstone's investment approach can be summed up as "Buy it, Fix it, Sell it." They deeply involve themselves in the management of their portfolio companies, increasing corporate value through management improvements and business restructuring. In real estate investments as well, they follow an approach of enhancing value through operational improvements and development after property acquisition.
Career Characteristics
To understand the career paths at both companies, we need to take a comprehensive look from entry-level recruitment to required skills and internal career development.
Required Skills and Qualities
Although sharing the same roots, the desired candidate profiles differ slightly between the two companies.
BlackRock
At BlackRock, in addition to traditional finance and accounting skills, understanding of technology is highly valued. As demonstrated by their Aladdin system, there is increasing demand for talent with data analysis and programming skills. Quantitative analysis abilities are also important from a risk management perspective.
Therefore, for undergraduate majors, tech talent from computer science, data science, and financial engineering backgrounds is particularly preferred. Alpha Advisors has also seen cases where students from liberal arts schools (majoring in computer science) have received offers from BlackRock.
However, it's important to recognize that the desired profile varies by position. For example, while operations positions may not require deep tech or finance knowledge, communication skills and administrative abilities are essential.
Blackstone
At Blackstone, a more traditional investment banking skill set is required. Expert knowledge in corporate finance, accounting, valuation, and financial modeling is essential. Furthermore, since they are deeply involved in the management of their portfolio companies, a broad understanding of business and strategic thinking abilities are also important.
In particular, financial modeling skills using Excel are heavily scrutinized during the recruitment process. Technical interviews often include detailed case studies.
Consequently, Blackstone tends to hire more through mid-career recruitment. Their main hiring targets are professionals in their 20s and 30s who have built up experience at investment banks for several years.
However, this doesn't mean they don't conduct new graduate recruitment. For example, Alpha Advisors has successfully placed candidates from American universities into Client Services positions at Blackstone.
Career Path and Compensation
Both companies have a basic career ladder structured as follows:
- Analyst (2-3 years)
- Associate (3-4 years)
- Vice President (VP)
- Director/Principal
- Managing Director (MD)
At BlackRock, relatively stable career development is possible. The regular working hours are early-bird style, with many departments starting around 6:30 AM. Work-life balance is considered relatively good within the financial industry, although long hours may be required during market volatility or critical projects.
On the other hand, at Blackstone, long working hours comparable to investment banks are common. It's not unusual to work until late at night during due diligence or negotiations. However, compensation is correspondingly high, with particularly attractive bonuses upon deal completion.
In terms of compensation, both companies maintain top-tier industry levels. Blackstone, in particular, is known for its high compensation structure comparable to investment banks and hedge funds. While BlackRock has a more stable compensation structure, senior-level positions still offer very attractive compensation packages.
Key Points for New Graduate Recruitment
【Common Points】
- Extremely competitive recruitment process
- Focus on hiring from top schools
- Deep knowledge of finance and accounting required
- Internships are crucial entry points
【BlackRock】
Desired Candidates:
- Understanding of technology
- Risk management perspective
- Aptitude for team-based work
【Blackstone】
Desired Candidates:
- Exceptionally high analytical skills
- Physical resilience to handle tough working conditions
- Passion for increasing corporate value
In new graduate recruitment, you'll be competing with top talent from around the world for just 1-3 positions. While recruitment takes place in major countries (US, UK, Singapore, Hong Kong, Japan, etc.), BlackRock tends to have more positions available.
The typical career path to enter Blackstone is through transferring from an investment bank. However, new graduate positions are available for back-office roles such as operations.
It's important to note that the selection timeline is very early. Last year, summer internship offers for Blackstone were made in February of students' sophomore year. How you spend your freshman and sophomore years is undoubtedly key.
Alpha Advisors Support
Alpha Advisors has successful placement records for both BlackRock and Blackstone. While many students initially lack financial knowledge and understanding of the industry and companies, they secure offers through proper preparation and strategy.
Specifically, we recommend two courses: the "Investor Development Program" and "Investment Management Advisory." These courses, which have become very popular in Japan, provide instruction from the ground up in financial knowledge, market analysis, valuation methods such as DCF, Excel for financial modeling, and fundamentals analysis.
Many students who received offers from BlackRock and Blackstone have taken these courses. Given the early selection timeline at both companies, we recommend starting preparation from freshman or sophomore year.
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