BlackRock Makes Minority Investment in SpiderRock Advisors
July 13 2021 - 9:00AM
Business Wire
Expands access to personalization and
tax-management capabilities for wealth separately managed
accounts
BlackRock (NYSE: BLK) and SpiderRock Advisors have entered into
a strategic venture to expand access for wealth firms and financial
advisors to professionally managed, options-based separately
managed account (SMA) strategies. This venture builds on
BlackRock’s position as a market leader in personalized SMAs,
including the recent acquisition of Aperio. Adding access to the
capabilities of SpiderRock Advisors will offer wealth management
firms and financial advisors more tools to deliver tax-efficient,
personalized portfolios and risk management solutions. As part of
the strategic venture, BlackRock will make a minority investment in
SpiderRock Advisors.
SpiderRock Advisors is a leading provider of customized options
strategies in the U.S. wealth market and manages approximately $2.5
billion in client assets as of March 31, 2021. The firm’s
strategies are available through all of the major RIA custodians
and are focused on risk management and yield enhancement for
diversified portfolios as well as concentrated stock positions.
BlackRock’s market leaders and consultants in U.S. Wealth Advisory
will serve as the primary distribution and marketing team in
introducing SpiderRock Advisors’ advisory services and strategies
to wealth firms and financial advisors.
BlackRock is already an industry leader in SMAs for U.S. wealth
management-focused intermediaries. The firm’s SMA franchise
specializes in providing customized actively managed fixed income,
equity, and multi-asset strategies and, including the recent
acquisition of Aperio, manages over $190 billion in SMAs as of
March 31, 2021. The venture with SpiderRock Advisors will expand
the breadth of personalization capabilities available to wealth
managers through SpiderRock Advisors.
“BlackRock continues to invest to equip wealth managers with
innovative solutions that support the twin objectives of better
after-tax performance and personalization. We are eager to help
advisors access SpiderRock Advisors’ capabilities to help them
build tax -efficient, highly customizable portfolios that can
generate income and manage risk for their clients,” said Martin
Small, Head of BlackRock’s U.S. Wealth Advisory business.
The U.S. retail and wealth SMA market totals approximately $2.1
trillion in assets1 and is growing at approximately 15% annually
and 35% among RIAs2. The use of option overlay strategies in the
SMA market has grown with the markets reaching new highs in the
past few years and investors accumulating concentrated stock
positions. This is expected to further increase as investors
continue to look for better ways to tackle the suppressed yield and
volatile market environment.
“We are excited to partner with BlackRock to introduce
SpiderRock Advisors and our options management capabilities to a
wider audience of firms and their clients,” said Eric Metz,
President and Chief Investment Officer of SpiderRock Advisors.
“Innovative advisors understand the value of managing risk as we
navigate a challenging capital markets landscape. Between potential
tax reform, historically low interest rates, and volatile equity
markets, options-based strategies and solutions can often solve
client objectives more efficiently than conventional allocations
and techniques. With BlackRock’s breadth of industry relationships,
SpiderRock Advisors will be able to partner with more advisors to
deliver tailored portfolios and help investors achieve their
investment goals.”
The terms of the transaction were not disclosed.
About BlackRock
BlackRock’s purpose is to help more and more people experience
financial well-being. As a fiduciary to investors and a leading
provider of financial technology, we help millions of people build
savings that serve them throughout their lives by making investing
easier and more affordable. For additional information on
BlackRock, please visit www.blackrock.com/corporate | Twitter:
@blackrock | LinkedIn: www.linkedin.com/company/blackrock
About SpiderRock Advisors
SpiderRock Advisors, LLC, a Chicago based affiliate of
SpiderRock Holdings, is a tech-enabled asset manager. Combining
world-class technology with comprehensive derivative expertise,
SpiderRock Advisors is making it easy for financial advisors and
institutions to add option strategies to their portfolios. As of
March 31, 2021, SRA manages approximately $2.5 billion for firms in
the RIA, family office, independent broker/dealer, wirehouse and
institutional channels.
_________________________
1 Cerulli Associates, data as of December 31, 2020. 2 Cerulli
Associates, data as of December 31, 2019. Growth rates
2015-2019.
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Media Contact
Paige Hofman Paige.hofman@blackrock.com 212-810-3368
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