'BlackRock' vs 'Blackstone': What's the Difference?

Are you wondering about the difference between 'BlackRock' vs. 'Blackstone?'

Here is the short answer: 

• 'BlackRock' and 'Blackstone' are both investment companies. 
• 'BlackRock' deals with traditional investments widely available to the general public, like stocks, bonds, and ETFs. 
• 'Blackstone' brings alternate investments to their clients, which could produce significant returns over time. 

The above answer is just a brief overview. You will learn more about these businesses and the services they provide in this guide. So, keep reading!

What is the Difference Between 'BlackRock' vs. 'Blackstone?'

As I mentioned 'BlackRock' and 'Blackstone' are both investment firms that help people achieve higher returns. However, the investments they offer differ.

• 'BlackRock' offers traditional products that are widely available to the public.
• 'Blackstone' focuses on less available private equity investments.

Both firms originated in the 80s, but Blackstone was opened first in 1985. In 1988, Larry Fink founded 'BlackRock,' which was originally part of 'Blackstone' Financial.

• However, he later separated from 'Blackstone' which specialized in mergers and acquisitions at the time, and went on to create the largest investment firm in the world with more than $9 trillion in holdings.

So, they were once the same company, but today, 'Blackstone' is a smaller company that focuses primarily on private equity investments, and 'BlackRock' is a premier investment firm specializing in traditional products.

Definitions for 'BlackRock'

'BlackRock' opened in 1988 as a subsidiary of 'Blackstone.' However, the company which focuses more on traditional investments, eventually separated from the 'Blackstone' company.

The dictionary does not define 'BlackRock,' but as a client of the finance management giant, you may hear some of these terms. So, check out the definitions of the finance products the company offers below.

Definition of ETFs

'ETFs' is an abbreviation of the electronically traded fund, which is:

• An investment fund that purchases and trades on the stock exchange and pays dividends to shareholders

Definition of Stocks

'Stocks' are defined as a noun that means:

• Ownership or shares in a publicly traded company on the stock exchange

Definition of Bonds

'Bonds' are:

• Interest-earning certificates that you can purchase now for a larger return in the future

Definitions for 'Blackstone'

'Blackstone' is an investment company that started doing acquisitions and mergers when it opened in 1985, but now focuses on alternative forms of investment, like private equity, innovation, and real estate.

Like, 'BlackRock' there is no definition in the English dictionary for 'Blackstone,' but here are some of the terms you may encounter as a client of the company.

Definition of Private Equity Investments

The definition of a 'private equity investment' is:

• An alternative investment in a privately-traded company

Definition of Innovation Investments

The definition of 'innovation investments' is:

• An investment in a company that develops innovative ideas and creates new markets to sell them

Definition of Real Estate Investments

'Real estate investments are defined as:

• Investments in real estate funds that acquire rental properties, storage facilities, commercial facilities, and land which pay out dividends to investors

Pronunciation: How to Pronounce 'BlackRock' vs. 'Blackstone'

By now, you know that the similarities between the names of these two companies are no accident. However, it adds to the confusion over which is which. So, let's look at the pronunciation of 'BlackRock' vs. 'Blackstone.'

When to Use 'BlackRock' vs. 'Blackstone?'

You learned the difference between 'BlackRock' vs. 'Blackstone,' but it may still be unclear when to use each term. So, here are some tips for when and how to use these company names.

• Use 'BlackRock' to reference the traditional investment firm.

For example, you might say:

I am going to move my investments into BlackRock's traditional investments as I reach retirement. 

• Use 'Blackstone' when you are discussing the non-traditional private equity investment firm founded in 1988.

So, you might say:

I invested heavily in Blackstone's non-traditional private equity investments when I was younger. 

Sample Sentences Using 'BlackRock' vs. 'Blackstone'

Now look at these sample sentences using 'BlackRock' vs. 'Blackstone.' They will help you remember the difference between these companies.

BlackRock

• BlackRock is the largest financial assets manager in the world.
• More than $21.6 trillion is managed using BlackRock's Aladdin end-to-end investment management software.
• BlackRock employs many former government employees, and many former BlackRock employees have become government advisors.
• Laurence D. Fink and seven of his colleagues started BlackRock in 1988.
• BlackRock is more successful than many better-known financial management companies.

Blackstone

• Over the past 30 years, Blackstone has been a major investor in leveraged buyouts.
• Blackstone is the largest alternative investment firm in the world, with more than $1 trillion in holdings.
• The president of Blackstone is Jonathan Gray.
• Steven Schwarzman, CEO of Blackstone Group, is worth over $37 billion, making him one of the wealthiest people in the United States.
• After a successful career in acquisitions and mergers at Lehman Brothers Schwarzman started Blackstone with Peter Peterson, former Lehman Brothers CEO.

BlackRock/Blackstone

• BlackRock and Blackstone are the most successful traditional and non-traditional investment firms, respectively.
• Blackstone was founded in 1985, and BlackRock was founded three years later in 1988.
• BlackRock was founded as a division of Blackstone.
• If you are close to retirement, you may want to consider shifting investments from Blackstone to BlackRock.

A Last Look at the Difference Between 'BlackRock' vs. 'Blackstone'

You learned a lot in this post. So, here is a recap of the difference between 'BlackRock' vs. 'Blackstone':

• 'BlackRock' is a traditional investment firm started in 1988 by Larry Fink.
• 'Blackstone' is an investment company that manages private equity and non-traditional investments. 

These two company names can be challenging to keep straight. So, if you need a reminder of which is which, you can always return to this guide for a quick review.

You can also learn about the difference between hundreds of other frequently misused and mistaken terms in the confusing words section here. Each lesson includes definitions, usage tips, sample sentences, and pronunciations. So, they are beneficial whether you are a native English speaker who needs to verify the meaning of a word, or an English language learner who wants to learn grammar rules and expand your vocabulary.