BlackRock 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.
Upon closing, BlackRock’s global cash management platform is expected to grow to approximately $370 billion in assets under management, based on current asset levels.
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. Terms were not disclosed.
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.”