BlackRock will buy Aperio, a creator of tailored index strategies, from private equity firm Golden Gate Capital for $1.05 billion, according to press release. The move advances BlackRock into personalized indexes, which allow wealthy investors to tweak broad company indexes for tax reasons and personal preferences.
- BlackRock will oversee more than $160 billion in separately managed accounts after the Aperio deal, about a 30% rise.
- Aperio will bring expertise in tailoring indexes to suit investors’ preferences.
- BlackRock, a champion of cheap and passive investing, has been seeking ways to diversify as fees for managing products such as exchange-traded funds come under pressure.
- BlackRock became an indexing entity after purchasing Barclays Global Investors in 2009 and now manages $7.81 trillion, with around two-thirds in index strategies.
- BlackRock’s Aperio deal is expected to close in the first quarter.
- Separately managed accounts are one of the fastest-growing wealth management areas and account for $1.7 trillion of the U.S. market.
BlackRock’s stock is currently gaining. BLK: NYSE is up 1.82%