Gary Shedlin

BlackRock has frozen hires, reduced spending, says CFO

On Tuesday, Chief Financial Officer Gary Shedlin said his firm is freezing most recruitment and cutting down expenses.

Gary Shedlin

During a financial conference hosted by Goldman Sachs, adding that these measures will put BlackRock in a better position next year, he said, “We’re trying to be a little more prudent.”

BlackRock also said there were some short-term performance challenges and it needed to think about resetting expenses relative to revenues.

The CFO said that the firm has seen some difficulties in retail mutual funds.

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But it expects to see a sizeable ramp-up in performance fees from illiquid businesses in next few years.

Earlier in October, the company had said its assets under management dropped 16% year-on-year to $7.96 billion, as a stronger dollar dampened the value of investments in Europe and Asia. Its net income also fell 17%.

Earlier in October, when the company announced its third-quarter results, Shedlin warned that the company had begun “to more aggressively manage the pace of certain discretionary spend.”