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.
Anthony and James talk about how regulators in the US are falling behind other nations' regulators, the lack of talk about Reg AT, and an SRO for cryptocurrencies.Subscribe to Weekly Wrap emails