BlackRock Foundation donates shares

BlackRock has made a charitable contribution of 15.6 million shares of PennyMac Financial Services, with a market value of $589m, to fund the firm’s social impact efforts to advance a more inclusive and sustainable economy.

This charitable contribution will provide long-term funding for the firm’s philanthropic investments and partnerships through The BlackRock Foundation, a newly established corporate foundation, and the BlackRock Charitable Fund, which was established in 2013 with the contribution of a portion of its investment in PennyMac.

“Society today needs companies to create economic growth that benefits all stakeholders,” said Larry Fink, chairman and CEO of BlackRock. “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.”

BlackRock originally invested $34m in PennyMac in 2008, as BlackRock saw client opportunities in the residential home loan market. BlackRock made an initial charitable contribution of 6.1 million units to the BlackRock Charitable Fund, valued at approximately $125m, following PennyMac’s successful IPO in 2013.

Fink added, “Our strategic investment in PennyMac twelve years ago was part of an effort to help our clients access opportunities in the residential mortgage market that BlackRock could otherwise not have provided. The success of this partnership now affords us the opportunity to enhance our contribution to society in the many markets where we operate around the world.”

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