Combining high-quality B2B technology-enabled advice capabilities and world-class investment and risk management solutions
New York, NY (Aug. 28, 2015) – BlackRock, Inc. 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.
BlackRock (NYSE: BLK) 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.
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.