BlackRock seeks to expand its wealth management services with acquisition of SpiderRock Advisors

Marcus Baram
Author Marcus Baram

Marcus Baram is a contributing editor at Crain Currency, where he covers the intersection of finance and politics. Prior to joining Crain Currency, Baram was a staff writer at Fast Company and an editor at Huff Post. He has also written for outlets such as The New York Times, The Atlantic, and Vice. Baram is an expert on economic policy and has a deep understanding of the ways in which politics shapes the global financial system. In his role at Crain Currency, he brings a unique perspective to the complex and ever-evolving world of finance. With his keen analysis and clear writing, Baram helps readers make sense of the important issues impacting the economy today.

Mar 12, 2024
8 months ago

Asset management giant BlackRock just announced its acquisition of the remaining equity interest in SpiderRock Advisors, which provides customized strategies to wealthy investors. 

In 2021, BlackRock became a minority investor in the firm, but it took over due to “growing demand from wealth managers for personalized, tax-efficient portfolios,” said Joe DeVico, co-head of BlackRock’s U.S. wealth advisory unit.

DeVico said the deal reinforces BlackRock’s commitment to personalize separately managed accounts (SMAs), one of the fastest-growing products in the wealth industry — expected to grow from $2.7 trillion in assets under management as of the third quarter of last year to $4 trillion by 2026, according to Cerulli Associates.

SpiderRock, which managed about $4.8 billion in client assets as of February, offers “solutions that can provide advisers with a comprehensive suite of customization capabilities that help solve clients’ unique challenges, such as income generation, downside protection and tax-efficiency through the use of options,” said Eve Cout, head of the portfolio design and solutions pillar within BlackRock’s U.S. wealth advisory business.

Marcus Baram
Author Marcus Baram

Marcus Baram is a contributing editor at Crain Currency, where he covers the intersection of finance and politics. Prior to joining Crain Currency, Baram was a staff writer at Fast Company and an editor at Huff Post. He has also written for outlets such as The New York Times, The Atlantic, and Vice. Baram is an expert on economic policy and has a deep understanding of the ways in which politics shapes the global financial system. In his role at Crain Currency, he brings a unique perspective to the complex and ever-evolving world of finance. With his keen analysis and clear writing, Baram helps readers make sense of the important issues impacting the economy today.