BlackRock Bolsters Wealth Management Arsenal With SpiderRock Advisors Acquisition, Expanding SMA Solutions

BlackRock, Inc. BLK has agreed to acquire the remaining equity interest in SpiderRock Advisors, or SRA, a provider of customized option overlay strategies in the U.S. wealth market. 

Financial terms of the deal were not disclosed. This transaction expands on BlackRock’s minority investment in SRA made in 2021.

The acquisition will expand BlackRock’s offerings in personalized separately managed accounts (SMAs), the company said.

“We look forward to fully integrating SRA’s team and capabilities into our U.S. Wealth Advisory business and to further expanding our offerings in SMA solutions,” said Joe DeVico, Co-Head of BlackRock’s U.S. Wealth Advisory business.

As of February 2024, SRA handled around $4.8 billion in client assets. Their SMA strategies prioritize income and risk management, catering to various channels.

The financial impact of the transaction, which is expected to close in the second quarter of 2024, is not material to BlackRock’s earnings.

Last month, the company acquired a minor stake in Cardio Diagnostics Holdings Inc. CDIO, an artificial intelligence-powered precision cardiovascular medicine company.

Price Action: BLK shares are trading higher by 0.47% to $835.60 on the last check Friday. 

Photo: Lukas from Pixabay.