BlackRock agreed to take over investment management responsibilities of about $87 billion of cash management assets from Bank of America’s money management business, BofA Global Capital Management, BlackRock spokeswoman Tara McDonnell said.
This consists of all of BofA Global Capital Management’s AUM.
Bank of America spokeswoman Susan McCabe said that this deal aligns with Bank of America’s continuing plans to simplify its business.
Once the deal closes, BlackRock’s global cash management platform is expected to grow to about $370 billion in assets under management. As part of the deal, BlackRock will also have expanded access to several of Bank of America’s distribution channels.
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 separate accounts.
The transaction is expected to close in the first half of 2016, subject to fund boards, BofA Global Capital Management’s fund shareholders and regulatory approvals. Financial terms of the deal were not disclosed.
BlackRock had $4.506 trillion in AUM as of Sept. 30.
