BlackRock Caps Credit Fund Redemptions, Shares Slide as UBS Raises Target to $1,280
BlackRock capped weekly redemptions on its flagship private credit fund at a 5% minimum, sending shares down 3.7% intraday. UBS upgraded the stock to Buy with a $1,280 target after Q4 net inflows of $342 billion and full-year revenue growth of 19% to $24.0 billion.
1. Redemption Cap on Private Credit Fund
BlackRock enforced its 5% weekly redemption minimum on its flagship private credit fund after heavy outflows pressured liquidity. This move aimed to stabilize the fund’s asset base but triggered a 3.7% share price decline on heightened investor concern over credit liquidity.
2. UBS Upgrade and Price Target
UBS raised its rating on BlackRock to Buy from Neutral, assigning a $1,280 price target. The firm cited strong Q4 performance, constructive management commentary, and a solid start to Q1 net inflows as catalysts for a potential multiple re-rating into the low-20x earnings range.
3. Q4 and Full-Year 2025 Results
In Q4 2025, BlackRock reported net inflows of $342 billion, contributing to full-year net inflows of $698 billion and cumulative five-year inflows of nearly $2.5 trillion. Full-year revenue rose 19% to $24.0 billion and operating income climbed 18% to $9.6 billion, while EPS reached $48.09, up 10%.
4. Enhanced Capital Returns
BlackRock returned a record $5.0 billion to shareholders in 2025 through dividends and buybacks. The board approved a 10% increase to the Q1 2026 dividend and expanded 2026 share repurchases to $1.8 billion, plus authorization for an additional 7 million shares.