BlackRock has wrapped up its $1.3bn acquisition of French alternative investment management software and solutions provider eFront.
Image: eFront acquired by BlackRock for $1.3bn. Photo: courtesy of Aleš Čerin/Freeimages.com.
The global investment management company signed the all-cash deal in March to acquire eFront from Bridgepoint, which acquired the French firm in 2015.
BlackRock took up the acquisition in a move to expand its presence and technology capabilities in France, Europe and across the world.
eFront, through its expertise is in alternative investments and risk management, offers solutions to companies in the private equity, banking, real estate investment and insurance sectors.
Its combination with BlackRock’s investment operating platform Aladdin, is expected to define a new standard in investment and risk management technology. Furthermore, it is expected to hugely expand the alternatives capabilities of Aladdin and provide clients a whole-portfolio technology solution.
eFront CEO Tarek Chouman said: “Aladdin has long been recognized as the best-in-class unified investment and risk management technology platform in the industry.
“Joining BlackRock, adopting its user-provider model and integrating with Aladdin means that our investor, fund administrator and fund manager clients will benefit from constantly elevated standards and innovative product features.”
Founded in 1999, the French software provider serves more than 700 clients in 48 countries. Its workforce of around 700 people will be retained by BlackRock.
eFront’s software solutions are used for a range of alternative asset classes for managing their alternatives investment lifecycle, from due diligence and portfolio planning stage to performance and risk analysis.
BlackRock chief operating officer Rob Goldstein said: “As more investors incorporate alternatives into their portfolios, the ability to seamlessly manage portfolios across public and private asset classes on a single platform is critical.
“eFront will extend Aladdin’s end-to-end processing capabilities in alternative asset classes, enabling clients to get an enterprise view of their portfolio.”
Earlier this month, the alternative investment management software provider announced the launch of its first official partner program with 14 new partners. The partner program is designed to bring structure to the current partner ecosystem of the French firm, providing mutual benefit to the company, its clients and partners.
Also, the program will be an extension to eFront’s capabilities, offering more options to clients for their eFront-related projects.