NEW YORK--(BUSINESS WIRE)--BlackRock, Inc. and Bank of America’s asset management business, BofA® Global Capital Management have entered an agreement to transfer investment management responsibilities of approximately $87 billion of AUM currently managed by BofA® Global Capital Management to BlackRock. Through BofA® Global Capital Management, clients currently have access to a suite of taxable and tax-exempt money market funds; a U.S. dollar offshore fund; and customized separate account strategies.
The transaction will combine BlackRock’s global cash management expertise and product suite with the strength of BofA® Global Capital Management’s client relationships, resulting in a platform of high quality, global liquidity investment solutions accessible to a broader spectrum of clients. Upon closing, BlackRock’s global cash management platform is expected grow to approximately $370 billion in assets under management, based on current asset levels. BlackRock will continue to enjoy a strong distribution partnership with Bank of America and will have expanded access to several broad distribution channels.
"Expanding our partnership with Bank of America presents a tremendous growth opportunity for BlackRock’s cash management business. This partnership allows us to further leverage our global scale, comprehensive product suite and best-in-class risk management capabilities to serve a new universe of clients,” said Tom Callahan, BlackRock’s Co-head of global cash management. “At a time of tremendous change in the cash management industry, this alliance underscores BlackRock's commitment to market leadership in delivering outstanding liquidity solutions to our clients."
“BlackRock and existing BofA® Global Capital Management clients will benefit from a combined platform with greater scale and global reach,” said Rich Hoerner, BlackRock’s Co-head of global cash management. “Additional scale will better enable BlackRock to continue to manage client balances of various sizes and investment time horizons.”
“BlackRock is a best-in-class liquidity solutions provider with a demonstrated ability to deliver on clients’ needs for liquidity and yield,” said Michael Pelzar, President of BofA® Global Capital Management. “Our selection of BlackRock was made after careful consideration of our clients’ needs, our long-standing relationship with BlackRock, and their demonstrated ability to provide a comprehensive range of global liquidity management solutions.”
Both BlackRock and BofA® Global Capital Management are fully committed to continuing excellent service for BofA® Global Capital Management’s cash management clients and will work in partnership to ensure a seamless transition.
The transaction is expected to close in the first half of 2016 and is subject to fund boards, BofA® Global Capital Management’s fund shareholders and regulatory approvals. The financial impact of the transaction is not material to BlackRock earnings. Terms were not disclosed.
BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At September 30, 2015, BlackRock’s AUM was $4.506 trillion. BlackRock helps clients around the world meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. As of September 30, 2015, the firm had approximately 12,900 employees in more than 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company’s website at www.blackrock.com | Twitter: @blackrock_news | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock
*Source: Bank of America as of September 30, 2015. BofA® Global Capital Management managed assets consist of assets under the discretionary management of BofA Advisors, LLC, an SEC-registered investment advisor and indirect, wholly owned subsidiary of Bank of America Corporation.