NEWS UPDATE
B U Y- S I D E
BlackRock looks to make Aladdin
the ‘language of portfolios’
Larry Fink tells investors that BlackRock will use the eFront platform to add ‘sustainability
sleeves’ to the Aladdin system.
B
lackRock has said it wants investment operations plat-
form Aladdin to become the ‘language of portfolios’,
as its chief executive reiterates that technology remains a
key differentiator for the behemoth institution.
The asset manager’s CEO, Larry Fink, told investors on
BlackRock’s fourth quarter 2019 earnings call that the vast
majority of the firm’s technology revenues come from its
institutional Aladdin capabilities, which sets the standard
in investment management technology.
10 // TheTRADE // Spring 2020
“Our long-term strategy is to provide technology for
much of the asset management value chain as possible
and make Aladdin the language of portfolios,” Fink said.
“Demand remains strong for Aladdin and our technolo-
gy capabilities, and we expect growth will be driven by
expanding its capabilities to existing clients, attracting
new clients, to inorganic growth, including eFront and the
growth of our client’s businesses as they scale them-
selves.”
BlackRock acquired Paris-based eFront last year and
combined its platform, which offers technology for due
diligence and portfolio planning, performance and risk an-
alytics, with Aladdin. eFront’s platform provides technol-
ogy for the alternative investment lifecycle across various
alternative asset classes.
Fink added on the earnings call that the acquisition of
eFront will support growth in its illiquid alternative busi-
ness, with the deal allowing BlackRock to add ‘sustainabil-
ity sleeves’ to the Aladdin system. Sustainable investing
remains a key focus for the asset manager.
“The language of portfolio is becoming more and more
real and we’re committed to that. This is why we believe
we have to add sustainability sleeves to Aladdin and mak-
ing sure that our clients and our investors at BlackRock
can look at sustainability as one of the key investment risk
going forward,” Fink said.
“I’m looking back now with our eFront acquisition, and
I don’t even know how we were able to operate without
having those sleeves now. We’ve been spending years
talking about the need with our investors to have more
illiquids and now we have the technology to be helping
them do so.”
BlackRock’s quarterly technology services surged 35%
year-on-year in the fourth quarter of 2019, with full-year
technology revenues up 24% to $974 million, driven by
continued growth of Aladdin and the impact of its eFront
acquisition.