Earlier this year, BlackRock acquired France-based alternative investments software and solutions provider eFront. BlackRock cited two main drivers for the acquisition: to “strengthen its leadership position in the illiquid investment space” and to give “investment managers ability to seamlessly manage portfolios across public and private asset classes on a single platform.” I’m excited about the prospects this marriage can bring to the asset management community. But can BlackRock, the $7 trillion global asset manager and private equity general partner, succeed in building this much needed multi-asset solution?
Thanks to the eFront platform and the $1.3 billion in cash that was spent on the acquisition, BlackRock will now have a portfolio management solution for its own $135 billion in alternative assets under management. According to sources familiar with the deal, a joint team has already been formed and kicked off a project to onboard the BlackRock Private Equity portfolios onto the eFront software as a General Partner user. This endeavor will likely take a substantial amount of focus from the respective product teams. In addition, BlackRock is assuring both its current and prospective software clients that the combination of eFront and its flagship Aladdin platform will result in a game-changing enterprise platform that will provide a “whole portfolio” technology solution for the marketplace.
This alliance has the potential to bring unparalleled integration between public and private markets by marrying Aladdin and eFront analytics. Having been an implementor of both solutions within the last 3 years, I know this will be no small undertaking. The most obvious challenge may be the disparate data model between public and private market assets, but the differences don’t end there. These two solutions have fundamental product differences that may make integration even more challenging. For instance, eFront can be highly bespoke and tends to be deployed in a very tailored way to each client, where Aladdin is more of a menu offering with limited customization. Can BlackRock make this integration happen without damaging the value proposition of either platform? If they achieve this for their own investment management team, will it be deployable across all eFront’s unique client solutions, including the Limited Partner user community?
I am truly excited to see how this partnership progresses. BlackRock is spot-on that a “whole portfolio” solution is desperately sought after in the marketplace. The question remains, will their management team be successful in building a truly integrated multi-asset solution for all market segments? Only time will tell.
(Reuters) - BlackRock Inc, the world's biggest asset manager, said on Friday it would buy French investment software provider eFront from private equity firm Bridgepoint and eFront employees for $1.3 billion in cash.
BlackRock cited two main drivers for the acquisition: to “strengthen its leadership position in the illiquid investment space” and to give “investment managers ability to seamlessly manage portfolios across public and private asset classes on a single platform.” I'm excited about the prospects this marriage can bring ...
eFront adds to Aladdin's alternative risk factor models, helping investors understand economic and cash flow risks across their whole portfolio, and project future portfolio and investment outcomes.
In 2019, eFront was acquired by BlackRock and began operating as a specialized business unit within BlackRock Solutions, alongside Aladdin Institutional and Aladdin Wealth.
Larry Fink, one of the original eight Blackrock owners and founders, currently holds the positions of CEO and Chairman and is the largest individual shareholder of the company. As of 6 November 2023, he held 435,260 shares of the asset management firm.
The top three of eFront's competitors in the Investment Portfolio Management category are Black Diamond Wealth Platform with 41.22%, IHS Markit iLevel with 5.63%, FNZ Group with 4.92% market share.
eFront is the leading technology solution for alternative investment management, covering the needs of all alternative investment professionals end-to-end, from fundraising and portfolio construction to investment management and reporting.
BlackRock is building AI “copilots” for Aladdin, its flagship investment management platform, according to chairman and CEO Larry Fink. “The Aladdin platform is constantly in a state of innovation.
eFront, founded in 1999 by Olivier Dellenbach, is based in Paris and is the leading technology provider for managing the alternatives investment lifecycle, from due diligence and portfolio planning, to performance and risk analysis, across a range of alternative asset classes.
FAQs. How much does eFront cost? eFront offers plans starting at $1,000 per month for the Business package, which supports up to 1,000 registered users. The Enterprise package costs $1,500 for up to 2,500 users, and the Large Enterprise package costs $2,500 for up to 5,000 users.
BlackRock's CEO took home $26.9m for fiscal year 2023.
He also received a bonus of $7.9m, a base annual salary of $1.5m and 'all other compensation,' which included security and other contributions, of $1m.
Energy investing: Setting the record straight. The energy industry plays a crucial role in the economy, and, on behalf of our clients, BlackRock has invested $225 billion in U.S. public energy companies.
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