Parker Campbell
I'm a first-year Bachelor of Business Administration student in Management and Finance at the University of Toronto Scarborough, expected to graduate in April 2030. I'm most interested in corporate finance, mergers and acquisitions, and company valuation.
Outside class, I study public companies through their annual reports and earnings releases, and I build simple valuation models to test what a share price assumes. I'm looking for co-op and summer internship roles in investment banking, corporate finance and financial analysis.
Projects
BlackRock equity analysis
Complete- Question
- Is BlackRock's share price justified by its growth, profitability and risks?
- Methods
- Review of the 10-K and earnings releases, margin and ratio analysis, and a bear, base and bull earnings valuation
- Finding
- Skills
- Financial statement analysis, valuation, scenario analysis
BlackRock's acquisition of HPS
Complete- Question
- Did BlackRock pay a sensible price for HPS Investment Partners, and does the deal make strategic sense?
- Methods
- Precedent transactions, earnings and AUM multiples, an accretion check, and results since closing
- Finding
- A strong strategic fit at a full but defensible price, though the final verdict depends on HPS's growth through about 2030
- Skills
- M&A analysis, transaction multiples, accretion and dilution
Hypothetical portfolio dashboard
Tool- Question
- How do allocation and saving choices change a hypothetical portfolio?
- Methods
- Weighted 1-year price returns and a monthly compound growth projection
- Note
- Uses example weights and a chosen return, not real investments
- Skills
- Portfolio weighting, time value of money
Experience
- Municipal Operations Intern
- May–Aug 2026
- Worked in a small crew, coordinating daily tasks to meet productivity targets
- Communicated with supervisors, management and staff in other departments to plan and complete jobs
- Troubleshot operational problems, adapted plans to changing site conditions and helped make daily workflows more efficient
- Operated a truck-mounted HIAB crane and kept to safety standards around heavy equipment, vehicles and public roadways
Job simulations and certifications
Forage job simulations are self-paced virtual programs, not employment.
- Investment Banking Job Simulation
- JPMorganChase · Forage
- Operations Job Simulation
- Goldman Sachs · Forage
- Financial Accounting Foundations
- LinkedIn Learning
Virtual simulation. Screened acquisition targets, built company profile slides, modelled a full DCF, then revised the analysis after a post-fire scenario.
Virtual simulation. Explored transaction management, risk controls and operational workflows.
Online course covering accounting principles and the three financial statements.
Volunteering
- Junior Firefighting Counselor
- Oct 2023–Oct 2025
Mentored junior participants in safety procedures, team exercises and emergency response fundamentals, and led interactive training sessions.
Education
Relevant coursework
- Financial Accounting
- Microeconomics
Areas of interest
- Corporate finance
- Mergers and acquisitions
- Investment banking
- Business strategy
- Financial analysis and valuation
- Quantitative finance
Skills
- Microsoft Excel
- Financial modelling
- Financial statement analysis
- Risk management
- Business analysis
- Generative AI tools
Originally from Port Elgin, Ontario.
BlackRock
BlackRock, the world's largest asset manager, earns most of its revenue from fees on the money it manages. Results are strong, and the share price looks about fair.
- Question
- Is BlackRock's share price justified by its growth, profitability and risks?
- Approach
- Read the 2025 10-K and recent earnings releases, compared GAAP and adjusted results, and valued the shares under three scenarios
- Finding
- Skills shown
- Financial statement analysis, ratio analysis, valuation, scenario analysis
Key figures
Reported dataRatios use the Nov 5 close and the four quarters to Sept 30, 2026. Market cap uses the 154.6M shares and 7.6M exchangeable units outstanding at Sept 30. The share price swung more than 5% in each of the first days of November, so check the current price before relying on these ratios.
Assets and revenue
ReportedYear-end AUM and full-year revenue, plus AUM at Sept 30, 2026. In 2022, AUM fell 14% and revenue fell 8%.
Third quarter 2026
Reported- Revenue
- $7.75B, +19%
- Base fees
- $5.78B, +19%
- Net inflows
- $205.5B
- Operating margin, adjusted
- 47.8%
- Operating margin, GAAP
- 30.0%
- Diluted EPS, adjusted
- $15.93, +38%
- Diluted EPS, GAAP
- $10.57, +25%
Growth rates compare with the third quarter of 2025.
How BlackRock makes money
ReportedBlackRock charges clients a fee based on the assets it manages, so most of its revenue rises and falls with AUM and market levels. It also earns performance fees when some funds beat their targets, and it licenses its Aladdin investment platform to other institutions.
Third quarter 2026 revenue of $7.75B, from the income statement in the earnings release.
Where the $15.5 trillion sits
ReportedAt Sept 30, 2026. Private markets are a product category within these totals, at $336B or about 2% of AUM.
Growth drivers
Clients added a net $868.6B over the twelve months to September, and organic base fees grew 10% in that period. ETFs led the third quarter with $134.5B of net inflows.
BlackRock has also been buying its way into private markets. It closed GIP in October 2024, Preqin in March 2025 and HPS on July 1, 2025. Technology services and subscription revenue, which includes Aladdin, rose 14% to $588M.
Risks
Fees move with asset values, so a falling market cuts revenue even when clients stay. Institutional index mandates also lost a net $103.6B in the first nine months of 2026.
Adjusted results flatter the picture. The third-quarter gap between the 47.8% adjusted margin and the 30.0% GAAP margin comes mainly from a $564M change in contingent consideration and $276M of amortization. Performance fees are also uneven: $630M of this year's $1.2B came in the third quarter, mostly from one hedge fund whose annual performance period ends then.
Try your own valuation
EstimatesPick a scenario or move the sliders. Every number in this panel is a projection based on the assumptions below, not reported data.
Assumptions and method
Starting points are reported figures: trailing adjusted EPS of $55.53 for the four quarters to Sept 30, 2026, an annual dividend of $22.92 ($5.73 a quarter), and the $1,170.67 share price at the Nov 5 close.
| Assumption | Bear | Base | Bull | Basis |
|---|---|---|---|---|
| EPS growth per year | 6% | 10% | 14% | Organic base fee growth was 10% over the 12 months to Sept 2026. The base case assumes earnings grow at that pace. |
| Exit P/E | 15x | 18x | 21x | The trailing adjusted P/E is 21.1x at the Nov 5 close. The base case assumes a modest decline as growth slows. |
| Required return | 9% | 9% | 9% | My own hurdle rate for a large, established stock, not the output of a cost-of-capital model. |
| Dividend growth per year | 2% | 4% | 8% | The quarterly dividend grew about 4% a year from $4.88 in 2022 to $5.73 in 2026. Raises were about 2% a year in 2023 to 2025, then 10% in 2026. |
- Grow trailing adjusted EPS for five years.
- Multiply year-five EPS by the exit P/E to estimate the share price in five years.
- Discount that price to today at the required return.
- Add each of the next five years' dividends, growing at the dividend growth rate and discounted the same way.
This values earnings, not cash flows, so it isn't a full DCF. Adjusted EPS excludes items such as acquisition-related amortization and changes in contingent consideration, so values are higher than they would be using GAAP EPS. This is a student exercise, not investment advice.
BlackRock's acquisition of HPS
In 2025, BlackRock bought HPS Investment Partners, one of the largest private credit managers, for about $12 billion in BlackRock equity. I looked at why BlackRock wanted it, what it paid, and whether the deal is working.
- Question
- Did BlackRock pay a sensible price for HPS, and does the deal make strategic and financial sense?
- Methods
- Precedent transactions, earnings and AUM multiples, an accretion check, and a review of results since closing
- Finding
- A strong strategic fit at a full but defensible price. Early results support it, but the final verdict depends on HPS's growth through about 2030.
- Skills shown
- M&A analysis, transaction multiples, accretion and dilution, risk assessment
HPS gave BlackRock immediate scale in the fastest-growing part of asset management, and the price was in line with BlackRock's other private markets deals. Paying about 30 times HPS's earnings only makes sense if HPS keeps growing quickly. Paying in stock, with part of the price held back until about 2030, puts some of that risk on HPS's sellers. The first year of results is encouraging, but withdrawal pressure in HPS's main retail fund is a risk to watch.
Multiples and percentages marked as mine are calculated from the reported figures cited below. HPS's own financials come from BlackRock's 2025 estimates in its deal presentation, because HPS was private and didn't publish results.
Deal terms
Reported- Announced
- Dec 3, 2024
- Closed
- July 1, 2025
- Headline price
- About $12B, all in BlackRock equity
- Paid at closing
- About 8.5M units, valued at $8.5B
- Deferred payment
- About 2.8M units
- Earnout
- Up to 1.6M units
- Employee retention pool
- Up to $675M
- BlackRock's stated expectations
- See note
About 12.1M exchangeable units at announcement. Units exchange one for one into BlackRock shares. HPS's existing debt of about $400M was to be repaid or refinanced.
Plus about 1M restricted stock units for HPS employees. The value used BlackRock's price of about $1,049 on June 30, 2025, discounted for a one-year restriction on selling.
Paid in about five years if certain post-closing conditions are met.
Paid in about five years if HPS reaches financial performance milestones.
Paid in BlackRock restricted stock units.
Private markets fee-paying AUM up about 40% and private markets management fees up about 35%, to over $2.5B. Modestly accretive to adjusted EPS in the first full year after closing.
1. Strategic rationale
My analysisPrivate credit means loans made by investment funds instead of banks, usually to mid-sized companies. BlackRock estimated the traditional private credit market at $1.7 trillion at the end of 2023 and expects it to exceed $4.5 trillion by 2030. That's about 15% growth a year, far faster than BlackRock's core index business. It's BlackRock's own forecast, so I treat it as optimistic but directionally supported: in its deal presentation, BlackRock cited research showing private debt financed 58% of sponsor-backed acquisitions in 2022, up from 5% in 2013.
HPS fills the biggest gap left after BlackRock's other two 2024–2025 deals. GIP added infrastructure, Preqin added private markets data, and HPS adds credit. BlackRock's goal is for private markets and technology to produce over 30% of its revenue by 2030. One early example of the combination: in July 2026, BlackRock used GIP and HPS together to take an 80% stake in a venture that owns Meta's roughly $14 billion data center campus in El Paso, Texas.
Building this from scratch would have taken years. As one industry executive told Fortune, BlackRock "might as well acquire a good firm versus trying to build one from scratch."
2. Target overview
ReportedHPS started in 2007 as Highbridge Principal Strategies, part of J.P. Morgan Asset Management's Highbridge business. Its management team, led by former Goldman Sachs executive Scott Kapnick, spun it out of J.P. Morgan in 2016. HPS was considering an IPO in 2024 before agreeing to sell to BlackRock.
It lends mostly to mid-sized companies, including senior loans, mezzanine debt and tailored financing. More than 60% of its lending comes from deals not run by private equity firms. Insurance companies and pension plans provide 68% of its assets, and it had over $20B in funds sold to individual investors.
HPS at a glance
Reported, Sept 30, 2024- Client assets
- $148B
- Fee-paying AUM
- $107B
- Private credit fee-paying AUM
- $85B
- Public credit fee-paying AUM
- $22B
- Uncommitted capital (dry powder)
- $31B
- Employees
- About 800
- Client assets at closing, July 2025
- $165B
Figures are as of the deal announcement unless noted. Its main competitors include large alternative managers such as Ares Management, Blue Owl Capital, Apollo Global Management and Blackstone.
3. Financial profile
BlackRock's 2025 estimates- Base management fees
- About $850M
- Fee-related earnings, after tax
- $360M
- Fee-related earnings margin, before tax
- Nearly 50%
- Base fees as a share of fee-paying AUM
- About 0.8%
- Base fees vs BlackRock's 2025 revenue
- About 3.5%
The last two rows are my calculations from BlackRock's figures.
What the numbers say
Fee-related earnings are the profit from steady management fees, leaving out less predictable performance fees. They are the main earnings measure for valuing private markets managers.
HPS earns about 0.8% a year on fee-paying assets, several times what index funds charge, and keeps nearly half of it as profit before tax. At about 3.5% of BlackRock's revenue, it doesn't change BlackRock's size much, but it shifts the mix toward higher-fee, faster-growing business. That mix is what BlackRock is paying for.
HPS didn't publish historical financials, so I couldn't check its growth record directly. These figures are the buyer's estimates.
4. Valuation and precedent deals
My analysisI compared the price with two similar acquisitions of alternative asset managers. Price as a share of assets is a rough check, because fee rates differ by asset type. Price to fee-related earnings is the better measure where it's available.
| Deal | Announced | Price | Assets | Price / assets | Price / FRE |
|---|---|---|---|---|---|
| T. Rowe Price buys Oak Hill Advisors (credit) | Oct 2021 | Up to $4.2B | $53B | 7.9% | Not disclosed |
| BlackRock buys GIP (infrastructure) | Jan 2024 | Over $12.5B | Over $106B | About 11.8% | 25–29x, 2024 estimate |
| BlackRock buys HPS (credit) | Dec 2024 | About $12B | $148B | 8.1% | About 30x, 2025 estimate |
On assets, HPS cost almost exactly what T. Rowe paid for Oak Hill, the closest credit-focused comparison, and less than GIP. On earnings, the roughly 30 times multiple is a little above GIP's. BlackRock said leading listed private markets managers traded at 30 to 34 times, which would put HPS at the low end. I couldn't independently verify those peer multiples at the deal date, so I treat them as the buyer's view.
Price-to-FRE multiples are BlackRock's, excluding the retention pool and the value BlackRock put on performance-related earnings. Using the full $12B over $360M gives about 33x. Price-to-asset figures are my calculations.
5. Transaction structure
My analysisWhy pay in stock. BlackRock kept its cash and debt capacity, and HPS's owners became BlackRock shareholders, so they gain if the combination works. The cost is dilution: about 8.5M units at closing, compared with about 155M BlackRock shares, adds about 5.5% more shares. Counting employee stock units and every deferred and earnout unit, BlackRock said it expects to issue no more than about 13.8M shares, or about 9%.
Why defer part of the price. About a quarter of the units are paid only after about five years, and the earnout only if HPS hits financial targets. That keeps HPS's leaders committed and moves some of the risk of overpaying onto the sellers.
Accretion check
My estimateA stock deal adds to earnings per share when the buyer's shares are valued more highly than the earnings it's buying.
- BlackRock's P/E at announcement
- About 24x
- Price paid for HPS's earnings
- About 30–33x
- Based on units issued at closing
- About 25x
$1,039 close on Dec 3, 2024, over 2024 adjusted EPS of $43.61, reported in January 2025
BlackRock planned 9.2M of the 12.1M units, about 76% or $9.1B of the $12B, for closing
On the full price, the deal would slightly reduce EPS. Counting only the units issued at closing, it's close to break-even, which fits BlackRock's "modestly accretive" forecast once HPS grows. Without that growth, the deferred units would make the deal dilutive later.
6. Synergies
My analysisBlackRock didn't publish a dollar synergy target, and it kept HPS as a separate business unit, so I don't expect meaningful cost savings. The case rests on selling more HPS products to BlackRock's clients.
- Few shared investors. BlackRock said only about 6% of the two firms' private credit investors overlapped, leaving room to cross-sell.
- Insurance clients. BlackRock manages over $700B for insurers, the type of client that already provides most of HPS's money.
- Combined deals. The Meta data center financing used GIP and HPS together, which neither could easily have done alone.
7. Risks
My analysis- Retail fund withdrawals. HPS Corporate Lending Fund, its flagship fund for individual investors, received withdrawal requests of 13.3% of shares in its second-quarter 2026 offer and 11.5% in the third. It paid out its 5% quarterly limit each time.
- Credit losses. A recession would raise defaults on middle-market loans and slow fundraising.
- Keeping people. Credit teams can leave. The retention pool and five-year deferred units are designed to prevent that.
- Dilution and price. Up to about 9% more shares at about 30x earnings. If growth slows, BlackRock overpaid.
8. Results since closing
Reported- Private credit raised in the first full year with HPS
- $25B
- HPS performance fees, Q3 2026
- $110M
- GIP and HPS fee-related earnings margins
- Above 50%
- BlackRock adjusted EPS growth, first comparable quarter after closing
- Over 35%
- BlackRock private markets net inflows, Q3 2026
- $15B
From BlackRock's Q3 2026 earnings release and call. HPS, GIP and Preqin were all part of BlackRock in the year-ago quarter too, so the EPS growth comes mainly from markets, flows, performance fees and investment gains. It shows the combined firm is growing, not how much HPS added.
Sources
- BlackRock HPS investor presentation, Dec 3, 2024
- BlackRock announcement, Dec 3, 2024 (SEC filing)
- BlackRock filing note on closing terms
- BlackRock Q3 2026 earnings call transcript
- BlackRock full-year 2024 results
- Fortune: deal coverage and HPS history
- T. Rowe Price announcement of Oak Hill Advisors deal (SEC filing)
- Infralogic: BlackRock and GIP
- Investing.com: HPS fund withdrawal limits, June 2026
- Global Banking & Finance Review: withdrawal requests, Sept 2026
- HPS Corporate Lending Fund: third-quarter 2026 shareholder letter (SEC filing)
- Kirkland & Ellis: BlackRock, GIP and HPS venture with Meta, July 2026
- BlackRock GIP investor presentation, Jan 2024 (SEC filing)
Stock tracker
Indices, Nov 5 close
Stocks fell sharply on Nov 5, erasing the rally that followed the U.S. midterm elections. The Nasdaq lost 5.5% and the S&P 500 lost 4.4%.
Watchlist
| Live quote |
|---|
No match. Try a ticker or a sector such as banking.
Select a column heading to sort. 1-year figures are price changes and exclude dividends. Dollarama and CN Rail 1-year changes run to Oct 30 because I couldn't confirm their Nov 5, 2025 closes. 52-week ranges use intraday highs and lows. BlackRock and NVIDIA are in US dollars and the rest are in Canadian dollars.
Sources
- AP via KRMG: U.S. index closes
- The Canadian Press via BNN Bloomberg: TSX level
- Motley Fool: NVIDIA Nov 5 close and 52-week range
- Yahoo Finance: Royal Bank price history
- Yahoo Finance: BlackRock
- TipRanks: BlackRock price on Nov 5, 2025
- Zacks via Finviz: NVIDIA close on Nov 5, 2025
- Yahoo Finance: Enbridge
- Simply Wall St: Enbridge 1-year change
- Morningstar: Canadian National Nov 5 close
- Yahoo Finance: Canadian National range and return
- TMX Money: Dollarama Nov 5 trading
- Yahoo Finance: Dollarama close and return
Portfolio dashboard
Split a hypothetical portfolio across the watchlist, then see its mix, what it would have returned over the past year and what regular saving could grow to.
Holdings
Saving plan
ProjectionThe projection compounds monthly at the return you choose, with savings added at the end of each month. It isn't a forecast for these stocks. The 1-year return weights each stock's price change from the watchlist, excludes dividends, ignores currency moves, mixes the end dates noted on the watchlist and doesn't predict future results.