One of the beneficiaries of the credit crunch is BlackRock, Inc. (NYSE: BLK), which is a mega asset manager. A key part of the business is BlackRock Solutions, which helps firms deal with risk problems and asset impairments. Yes, it's a fast-growing business. For example, BlackRock is managing The Bear Stearns Companies Inc. (NYSE: BSC) complex portfolio.

Well, this week, BlackRock announced its Q1 results. Net income increased 24% to $241.7 million, or $1.82 per share. Revenues were up 29% to $1.3 billion. It certainly helps that BlackRock has $1.364 trillion in assets under management and there is a global platform, which allows for deep diversification.

On the earnings conference call, the firm's CEO -- Larry Fink -- said that his firm is pushing aggressively into distressed assets. He even likes mortgages.

Fink also thinks there will be "dramatic consolidation" in the investment management sector. After all, with the dislocations in the market, there are likely to be choice assets on the market. And, in light of BlackRock's strong performance, the firm will be in a prime position to capitalize on the opportunities.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.