BlackRock has concluded the purchase of California-based personalised index provider Aperio Group, from Golden Gate Capital and Aperio employees.
The all-cash deal, valued at $1.05bn, was announced by the US-based asset manager last November.
Aperio collaborates with wealth advisers to develop customised and tax-efficient, public equity portfolios.
The acquisition of the $36bn firm is said to bolster BlackRock’s personalisation capabilities through tax-managed strategies across factors, broad market indexing, and investor ESG preferences.
BlackRock US Wealth Advisory business head Martin Small said: “Completion of the Aperio transaction accelerates BlackRock’s ambition to lead the industry from ‘one size fits all’ to ‘one size fits one’ – a portfolio that is hyper-personalised to reflect an investor’s unique risk, tax, and personal values preferences.”
It revealed earlier that, following the transaction, Aperio will become a separately branded, vertically integrated team within BlackRock’ US wealth advisory arm.
Aperio’s investment, business development, client service, as well as ESG-SRI processes will remain unchanged.
Its co-heads, Liz Michaels and Ran Leshem, will move to BlackRock and lead these processes as co-heads of the Aperio team.
Aperio CEO Patrick Geddes will continue to serve as the firm’s chief tax strategist, in addition to his new role as a senior adviser at BlackRock.
Commenting on the completion of the deal, Michaels and Leshem said: “Working with BlackRock, we will be able to enhance Aperio’s bespoke problem-solving capabilities for our current clients and expand our reach across wealth managers serving ultra-high net worth families and institutions.”
Recent moves by BlackRock
Recently, BlackRock filed prospectus documents with Securities and Exchange Commission (SEC) to add Bitcoin futures as eligible investments for two funds.
The move will give the investment giant’s clients exposure to cryptocurrency for the first time.
BlackRock’s Q4 2020 results, which came out earlier this month, showed the money manager surpassing estimates as AUM reached a record $8.68trn from $7.43trn in the prior year.
In August last year, the company received the nod of the China Securities Regulatory Commission (CSRC) to establish a mutual fund arm in China. In the same month, it also secured the regulatory nod to set up its China wealth management JV with Temasek and China Construction Bank.