BlackRock To Purchase Custom Index Provider Aperio For $1B To Boost Portfolio Management Services


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Investment management company BlackRock Inc (NYSE:BLK) has agreed to absorb operations of wealth management company Aperio Group along with the employees. Aperio is backed by private equity firm Golden Gate Capital.

What Happened: The $1.05 billion acquisition deal will be settled entirely in cash and could be closed by the first quarter of next year.

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Aperio will be vertically integrated with BlackRock’s wealth advisory business in the U.S. but continue to operate as a separate brand.

The company's CEO Patric Geddes will retain his role as Chief Tax Strategist and also become a senior advisor with BlackRock — overlooking portfolio construction research.

Aperio’s assets under management grew at an annual organic rate of 20% over the past five years. As of Sept. 30, its portfolio of managed assets was close to $36 billion.

With the acquisition of Aperio’s operations, Blackrock’s assets under Separately Managed Accounts (SMA) will rise to over $160 billion.

Why Does It Matter: Aperio offers tax-optimized custom index equity portfolio management services to ultra-high-net-worth-individuals. According to the Wall Street Journal, through the acquisition, BlackRock can increase personalized offerings for its wealth management clients.

Earlier in October, Morgan Stanley (NYSE:MS) acquired investment management company Eaton Vance Corp (NYSE:EV) for a purchase consideration of $7 billion payable partly by cash and the balance by way of stock.

Price Action: BlackRock closed 1.51% higher at $682.87 on Monday.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: M&ANewsAperio GroupGolden Gate CapitalPortfolio Asset ManagementWealth management