What’s the lifetime value of securities lending for an asset manager?

Securities lending is a $2.5tn industry, one that most financial institutions have been unable to access.

But a handful of firms have committed, and they’ve seen securities lending become a key part of their revenue.  

There’s one programme that stands head-and-shoulders above the rest for lifetime value: Blackrock.

Securities lending:

The Blackrock way

Blackrock has spent 40 years building one of the world’s largest internal securities lending programmes.

In fact, they’ve been lending securities since before Blackrock became “Blackrock”. Since then, they’ve delivered a positive return for every fund that has taken part.

The last decade has been particularly impressive, rising from $325mn in 2009 to $627mn in 2019. 

Blackrock securities lending revenue
2010–2020

COVID-19 volatility has

driven revenue even higher

And in Q2 of 2020, they reached new heights, even as AUM held steady.
It’s a result any asset manager would be proud of and just the tip of the iceberg
of their lifetime earnings. 

There’s just one catch.

Like every internal securities lending operation, Blackrock has incurred huge costs building and maintaining their programme.
It’s due to Blackrock’s enormous AUM that they’ve made the cost-benefit trade-off work.

With Sharegain, every asset manager can unlock the full potential of their AUM, even if they don’t manage trillions.

Ready to start lending your securities?

With securities lending, as with other investment activities, your capital may be at risk.

Sharegain Ltd. is registered in England and Wales (no. 09600298) and is authorised and regulated by the Financial Conduct Authority (no. 730395).
*This website is directed exclusively at and intended to be used only by professional investors and retail investors with direct holdings in stocks, bonds and ETFs in excess of £500,000. Our website is not directed at any person or institution where (by reason of nationality, residence or otherwise) the availability of our website or securities lending in general is prohibited. The material on this website is for general information and should not be considered as investment advice or solicitation to be involved in securities lending or to use one of Sharegain’s services. Securities lending involves risks and we have not and will not assess whether our service is appropriate for you. If you decide to lend your securities, your capital may be at risk. Please consult professional advisors if you are in any doubt as to whether the service would be beneficial for you or whether you require any consent or need to observe any formalities, before deciding to engage in securities lending.
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