The world's largest money manager, BlackRock Inc., created a new charitable entity — the BlackRock Foundation — to expand the firm's social impact mission to create a more inclusive and sustainable global economy.
The New York-based company on Feb. 10 contributed a total of $589 million to the new foundation and an existing charitable fund through the transfer of 15.6 million shares of PennyMac Financial Services Inc., the remaining 20% stake BlackRock held in the U.S. residential home-mortgage lender, confirmed Melissa Garville, a BlackRock spokeswoman.
"The contribution we're making — in line with our purpose as a firm — will support our commitment to creating greater financial well-being and advancing sustainability," said Laurence D. Fink, BlackRock's chairman and CEO, in a news release.
BlackRock originally invested $34 million in PennyMac in 2008. After PennyMac's 2013 initial public offering, BlackRock created the BlackRock Charitable Fund and contributed 6.1 million PennyMac shares valued at $125 million to the fund.
The current sizes of the two BlackRock philanthropic funds could not be learned. Both are based in New York.
Mr. Fink said in the news release that the success of BlackRock's 12-year partnership with PennyMac "now affords us the opportunity to enhance our contribution to society in the many markets where we operate around the world."
To date, issues supported by the BlackRock Charitable Fund include addressing financial instability, job training and employment, and aid for refugees.
"Financial insecurity prevents individuals from fulfilling their potential and it undermines productivity and economic mobility," said Deborah Winshel, managing director and BlackRock's global head of social impact, in the release, adding "we have an opportunity to help people gain a more secure financial footing by creating access to jobs with high-earning potential and tools to build savings, protecting against downside shocks."
BlackRock managed a total of $7.43 trillion as of Dec. 31.
