BlackRock’s ambition to increase revenues from technology has received a boost as HSBC agrees to offer the Aladdin investment management software to its customers, reports Jane Connolly.
The announcement was swiftly followed by news that BlackRock plans to acquire 100% of the equity interests in eFront, the Paris-based alternative investment management software and solutions provider, for $1.3 billion in cash.
After starting life as an internal tool to help investment managers oversee risks and make decisions, BlackRock says that Aladdin is now used by more than 200 institutions and 25,000 investment professionals.
Reuters reports that HSBC has started to roll out the platform in the US and Hong Kong and will eventually offer Aladdin to all customers who hold $1 million or more with the bank.
The deal will support BlackRock chief executive Larry Fink’s aim of increasing revenues from technology to 30% of the firm’s total by 2022.
Larry says that the acquisition of eFront’s solution for managing the alternatives investment lifecycle, across a range of alternative asset classes, will accelerate BlackRock’s position in both technology and illiquid alternatives.
“eFront immediately deepens our presence and technology capabilities in France, Europe and across the globe,” he says.
Separate from the eFront acquisition, BlackRock has agreed to repurchase approximately 3.1 million shares at a per share price of $412.84 in a private transaction under its existing repurchase programme – completing its targeted level of share repurchases for 2019.