BlackRock is close to signing off the terms of a near £1 billion deal to purchase alternative and real assets investment platform eFront.
If the $1.3 billion deal with current private equity owner Bridgepoint is approved, BlackRock will integrate eFront's software into its in-house Aladdin operating system, the FT reported.
HSBC today became the latest firm to sign an agreement to adopt Aladdin, according to Reuters, as the bank seeks to bolster its investment management offering.
BlackRock in October reported that inflows into Aladdin as well as its illiquid alternatives, multi-asset and passives businesses had helped it counter a decline in its active equity funds.
An 18% annual gain on revenue from its technology services to $582 million from $481 million in 2017 somewhat offset lower performance fees of $151 million.
In January, BlackRock promoted the boss of its iShares exchange traded fund division, Mark Wiedman, to a new role developing corporate strategy globally as it sought to plan for its future leadership following the eventual departure of its founder chief executive Larry Fink.
In a memo to employees at the time Fink said: ‘Growing the firm in this environment requires even closer connections between strategy and execution. I am asking Mark [...] to review and sharpen our business strategies, to tighten their link to operating plans, and to allocate firm resources and talent to serve clients and drive growth.
‘With these changes, and others we’ll make later this year, our aim is to bring the firm closer together, to simplify our organization, to make us more nimble, and to create new opportunities to drive growth and serve our clients.’