BlackRock to Acquire FutureAdvisor
August 26 2015 - 9:00AM
Business Wire
Combining high-quality B2B technology-enabled
advice capabilities and world-class investment and risk management
solutions
BlackRock, Inc. (NYSE:BLK) has entered into a definitive
agreement to acquire FutureAdvisor, a leader in digital wealth
management.
FutureAdvisor will operate as a business within BlackRock
Solutions (BRS), the firm’s world-class investment and risk
management platform. The unit will provide financial institutions
with high quality, technology-enabled advice capabilities to
improve their clients’ investment experience.
The combined offering will enable financial institutions to grow
their advisory businesses by leveraging technology to meet a
growing consumer trend of engaging with technology to gain insights
on their investment portfolios, including when making critical
decisions around retirement. This need is particularly acute among
the mass-affluent – a large segment accounting for 30% of total
U.S. investable assets.
The acquisition of FutureAdvisor helps meet the needs of a range
of financial institutions including banks, insurers, large and
small broker-dealers, 401(k) platforms, and other advisory firms
looking for a digital-advice platform to increase customer loyalty
and grow advisory assets.
“As demand for digital wealth management grows, we believe that
our combined offering will accelerate our partner firms’ abilities
to serve the mass affluent in a convenient, scalable way,” said Tom
Fortin, Head of Retail Technology for BlackRock.
“BlackRock Solutions has a history of offering technology and
advisory services to a broad range of institutions. The acquisition
of FutureAdvisor is an extension of BRS’ mission to help clients
solve their most complex investment challenges through technology,”
said Robert Goldstein, Chief Operating Officer and global head of
BlackRock Solutions.
FutureAdvisor is a leader in digital wealth management. Its
technology-enabled advice capabilities include: personalized advice
that can look holistically across clients’ brokerage, IRA and
401(k) accounts; tax-efficient portfolio management; mobile and web
applications; online account enrollment; and multi-custodian
support. BlackRock will complement these capabilities with
multi-asset class model portfolios, superior investment products
and BlackRock Solutions’ long history of delivering enterprise
technology and risk analytics from Aladdin® to partner firms.
“BlackRock has dedicated enormous effort over the years to
improving financial outcomes through its leading active and passive
investment offerings as well as innovative retirement planning
tools including its CoRI™ Retirement Indexes. We look forward to
integrating and delivering this expertise to investors in
partnership with financial institutions in the months to come,”
said Bo Lu, Chief Executive Officer and Co-Founder of
FutureAdvisor.
The transaction is subject to customary closing conditions and
is expected to close in the fourth quarter of 2015. The financial
impact of the transaction is not material to BlackRock earnings per
share. Terms were not disclosed.
About BlackRock
BlackRock is a global leader in investment management, risk
management and advisory services for institutional and retail
clients. At June 30, 2015, BlackRock’s AUM was $4.721 trillion.
BlackRock helps clients around the world meet their goals and
overcome challenges with a range of products that include separate
accounts, mutual funds, iShares® (exchange-traded funds), and other
pooled investment vehicles. BlackRock also offers risk management,
advisory and enterprise investment system services to a broad base
of institutional investors through BlackRock Solutions®. As of June
30, 2015, the firm had approximately 12,400 employees in more than
30 countries and a major presence in key global markets, including
North and South America, Europe, Asia, Australia and the Middle
East and Africa. For additional information, please visit the
Company’s website at www.blackrock.com | Twitter: @blackrock_news |
Blog: www.blackrockblog.com | LinkedIn:
www.linkedin.com/company/blackrock
About FutureAdvisor
FutureAdvisor, based in San Francisco, is an award-winning
registered investment advisory firm serving clients nationwide. Our
team of Chartered Financial Analysts and Math PhDs use software to
actively monitor and manage clients’ existing 401(k), IRA, and
taxable accounts from a household-wide, long-term perspective.
Visit FutureAdvisor.com and see how we can help you reach your
financial goals.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150826005586/en/
Media:BlackRock, Inc.Brian Beades,
212-810-5596Brian.Beades@blackrock.comorJessica Greaney,
212-810-5498Jessica.Greaney@blackrock.com
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