BlackRock / Aperio 2020
BlackRock acquired Aperio Group for $1.1B on November 23, 2020.
- Target
- Aperio Group
- Acquirer
- BlackRock
- Deal value
- $1.1B
- Deal type
- Cash
- Announced
- November 23, 2020
- Sub-sector
- Wealthtech
Transaction overview
- BlackRock announced the acquisition of Aperio Group on November 23, 2020 for approximately $1.05 billion in cash.
- The deal closed on February 1, 2021 following regulatory clearance.
- Aperio is a Sausalito, California-based separately managed account manager specializing in tax-optimized, personalized indexing.
- At close, Aperio managed roughly $36 billion in client assets, primarily for high-net-worth individuals.
- BlackRock is the world's largest asset manager, with over $8 trillion in AUM at the time of announcement.
- The acquisition added Aperio's direct indexing capabilities to BlackRock's existing iShares and wealth management businesses.
- Aperio was majority-owned by private equity firm Golden Gate Capital prior to the sale.
Why it matters
- The deal accelerated consolidation in direct indexing, a segment that attracted multiple large acquisitions in 2020-2021, including Morgan Stanley's purchase of Eaton Vance.
- At $1.05 billion, the price implied a multiple well above typical active manager valuations, reflecting demand for tax-managed SMA technology.
Strategic rationale
BlackRock buys customized index SMA manager with $36B AUM to expand its tax-efficient and ESG direct indexing offering for high net worth.
Deal terms & multiples
About Aperio Group
Aperio Group is a separately managed account manager founded in 1999 and headquartered in Sausalito, California. The firm built its business around tax-optimized, factor-tilted equity portfolios constructed to client specifications, a model sometimes called direct indexing or personalized indexing. Aperio served high-net-worth and ultra-high-net-worth individuals, primarily through registered investment advisors and family offices. At the time of the BlackRock deal, the firm managed approximately $36 billion in assets.
- Founded
- 1999
- HQ
- United States
- Prior funding
- Majority stake held by Golden Gate Capital; no publicly disclosed venture or growth funding rounds.
- Key metric
- ~$36 billion in AUM at close
About BlackRock NYSE: BLK
BlackRock is a New York-based asset management firm founded in 1988. The firm manages equities, fixed income, multi-asset, and alternative strategies across institutional and retail channels globally. Its iShares unit is the world's largest ETF provider by assets. BlackRock reported over $8 trillion in AUM at the time of the Aperio announcement.
- Founded
- 1988
- Ticker
- NYSE: BLK
Frequently asked questions
How much did BlackRock pay for Aperio?
BlackRock paid approximately $1.05 billion in cash. The deal was announced November 23, 2020 and closed February 1, 2021.
What does Aperio Group do?
Aperio manages tax-optimized, personalized equity portfolios in separately managed accounts, primarily for high-net-worth clients served through RIAs and family offices.
Why did BlackRock acquire Aperio?
BlackRock sought to expand its direct indexing capabilities for wealthy individual investors, a segment growing faster than traditional pooled fund products.
Who owned Aperio before BlackRock?
Private equity firm Golden Gate Capital held a majority stake in Aperio prior to the sale.
How much did Aperio manage at the time of the deal?
Aperio managed roughly $36 billion in assets under management at the time the transaction closed.
When did the BlackRock-Aperio deal close?
The transaction closed on February 1, 2021, approximately ten weeks after the November 23, 2020 announcement.
Sources
- blackrock.com /corporate/newsroom/press-releases/article/corporate-one/press-releases/blackrock-to-acquire-aperio