What’s the difference between Blackrock and Blackstone?

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This is a simplification, but:

BlackRock is an asset manager that generates returns for its investors through diversified portfolios that are intended to minimize risk. They tend to employ more “conventional” investment strategies.

Blackstone engages in alternative asset management, which means they employ investment strategies that are not conventional — most notably, private equity (buying businesses and selling them for a profit) — to generate returns for investors.

You didn’t ask, but hedge funds (such as Bridgewater) also employ alternative investment strategies: they employ sophisticated and risky investment strategies (for example, trading derivatives) to generate returns for investors.

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One is an asset manager and one lets you make tasty smash burgers.

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BlackRock is roughly 10x larger in terms of AUM.

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