The thing I’d add is Larry talked about in his prepared remarks, our integrated operating platform, track record and integrations. We have built our private markets business with substantial inorganic activity going back all the way to the early 2000s and we built a lot of the existing infrastructure business that we have today, also through inorganic transactions that have been successfully integrated. So we’ve been doing this for 10 years in the infrastructure space and look forward to accelerating it with Bayo and his partners and the entire GIP team who have substantial experience in business building and alternatives. And the last thing I’ll say just about integration is I think in many ways, this is a less complex integration in that these are highly complementary platforms that Bayo just talked you through in terms of some of the differences in investing acumen and solutions on the equity side, on the debt side.
And so in many ways, we have limited amounts of overlap, both in clients as well as in the characteristic of our investment solutions. In many ways, that makes the integration, I think, nimble and easier to position with clients and more agile for us to bring the platforms together.
Laurence Fink: Let me just add one thing. Bayo and I are going to be on the road a lot. And we are going to — with the combined organization, we have an amazing story. And we are going to be telling everyone the story from the corporation sides to governments. I just got an e-mail from a big government and saying, okay, there are things we could do more. So that was a nice e-mail that I just received. But I do believe our key is making sure our clients and the investors that have invested in BlackRock and GIP that they understand the merits of the combination and that they think this is even better for them. And our job is to make sure that everybody sees it and we execute that way. But we are very excited about this, and I look forward to being on the road with Bayo.
Operator: We’ll go next to Michael Brown with KBW.
Michael Brown: Maybe I’ll just condition to the organic growth outlook here as we think about 2024. Obviously, there’s been a lot of optimism around the acceleration of the fixed income flows and with what seems to be a more visible interest rate trajectory. So I had to hear about maybe some of your early conversations you’re having with institutional clients regarding allocations and what they’re — and how you expect that to progress through 2024? And when you think about the fixed income inflows, where should we think about where that money will kind of shift from? Is it from the money market funds? Or is it kind of the ownership of direct securities moving into funds or from bank deposits? Just love some commentary on that.
Martin Small: Great, Mike, it’s Martin. I’ll start just on some of the organic growth outlook and then Rob will talk a little bit about your specific fixed income. In 2023, obviously, we delivered $289 billion of total net inflows and 1% organic base fee growth. We continue to have conviction here in our 5% base fee target over the long term. We’ve reached it on average over the last five years and met or exceeded it in six of the last 10. And importantly, I think the way our shareholders evaluate us, years marked by significant market volatility, 2016, 2018, ’22, ’23, we generated positive organic base fee growth. And these last two years, no doubt have been more challenged on base fee growth through tough markets, but we’ve continued to generate positive growth while the industry has seen decay.
We don’t aim, as you know, to be the fastest grower in any quarter or any year. We aim to deliver more consistent and durable organic growth through market and over the long term. I would note we saw excellent momentum to finish the fourth quarter. As I mentioned in my remarks, in November and December, we generated an annualized 6% organic base fee growth rate, and that, to me, suggests that we can trend towards our 5% through the cycle target as rates stabilize and the market is more constructive. This is some of the best organic base fee growth momentum we’ve seen since 2021. I do want to flag two things. The first of which is I’d particularly flagged that iShares in Europe is really well positioned, and I think it’s going to be a bigger part of the organic base fee growth story over time.
European ETF industry flows are up 70% year-on-year. European iShares had almost 50% flow market share. And a lot of the long-term trends that propelled the U.S. industry to high growth rates are taking hold in Europe. So I think it’s just the beginning. We also see this combination with GIP and the potential for higher management fee growth in illiquid alternatives as bolstering, diversifying our overall organic base fee growth trajectory. So I’ll give it to Rob on fixed income.
Robert Kapito: Yes. So I’ll just add just two things, Mike. I wake up every morning salivating about the $7 trillion that’s sitting in money market accounts that’s waiting to move. And in order for it to move, you have to have a wide plate of products. That’s what we have been developing in client solutions. A lot of this is going to come from money that’s flowing into model portfolios, which we are the leader in. And a lot of it is going to come from digital wealth, which is a $17 billion global market. It’s growing at 15% and ETFs are becoming the investors’ preferred vehicle with access to investments. And then lastly, as we blend the active and passive business together, we’re going to see a lot of active fixed income portfolios move into an ETF wrapper. We’re the leader in ETF wrappers as well. So I think there’s a huge, huge runway for fixed income and really the wind is right behind our back for that.
Operator: Your next question comes from Brian Bedell of Deutsche Bank.
Brian Bedell: Great. Thanks. Good morning. Happy New Year. Maybe just to ask about the infrastructure, another angle of this. Just your outlook for fundraising over the next one to two years, given your — the products that you have and your thoughts around the growth in that $760 million of fee-related revenue. And maybe just the timing of it, I think you have — you said it a successful fund of 2019, that was a $22 billion fund. So are you in the market now for a fund or will soon be and do you expect to exceed that? And then also just the — in that retail channel, the desire to create democratized infrastructure products for retail investors that have some liquidity features?
