has caught robo-fever.
Today New York City-based BlackRock
a deal to buy San Francisco-based FutureAdvisor
, a robo-advisor. Terms for the deal, slated to close next quarter, were not disclosed.
FutureAdvisor is backed by venture capital shop Y Combinator
and private equity firm Sequoia
Fink's asset management giant will incorporate FutureAdvisor into the BlackRock Solutions investment and risk management platform.
"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," states Tom Fortin
, head of retail technology for BlackRock.
"The acquisition of FutureAdvisor is an extension of BRS' mission to help clients solve their most complex investment challenges through technology," states Robert Goldstein
, chief operating officer and global head of BlackRock Solutions, putting the deal in the context of BlackRock's "history of offering technology and advisory services to a broad range of institutions."
As for FutureAdvisor, the robo-advisor is telling clients that they expect CEO Bo Lu
to stick around, "working closely with Tom Fortin."
"FutureAdvisor will continue to remain as an independent platform while leveraging the value-enhancing capabilities, innovation and investment experience that BlackRock will bring to the relationship," the robo-advisor says in a notice sent today to its clients.
With $4.721 trillion in AUM as of June 30, the house that Fink built is the largest asset manager in the world.
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