BlackRock has reportedly bought robo-advisor software startup FutureAdvisor in a play to target young wealth management clients.
The deal will see FutureAdvisor — which generates client portfolios based on investment objectives, income, and tax at lower fees — integrated into BlackRock Solutions, which is a separate business from BlockRock's $4.7 trillion asset management arm.
FutureAdvisor is valued at between $150 and $200 million, after starting life as a startup at San Francisco's Y Combinator, and will continue to operate on a separate stack following the buy. The move comes after Fidelity introduced Betterment, another robo-advisor, into its Institutional Wealth Services business in 2014.
Other brokers have developed similar capabilities in-house as the technology continues to gain favor among diversified buy-side giants.
James talks about his trip to Chicago and some of the interesting topics that came up (including a look at disaster recovery demands). Then Anthony and James touch on ISDA's initial margin rules, with Phase 3 going live next year.Subscribe to Weekly Wrap emails