Home Daily Blitz BlackRock Takes Scalable Capital Stake In Europe ‘Robo-Advisor’ Push
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BlackRock Takes Scalable Capital Stake In Europe ‘Robo-Advisor’ Push

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FILE PHOTO: The BlackRock logo is seen outside of its offices in New York City, U.S., October 17, 2016. REUTERS/Brendan McDermid/File Photo

The following is an excerpt from Simon Jessop and Trevor Hunnicutt | June 20, 2017 | reuters.com |

BlackRock (BLK.N), the world's biggest asset manager, made its first push into Europe's "robo-advice" market on Tuesday after taking a stake in Anglo-German digital investment manager Scalable Capital.

BlackRock, which manages $5.4 trillion across a range of actively managed and index-tracking funds, led a 30 million euro ($33.6 million) funding round for Scalable alongside its two existing German venture capital backers, a joint statement said.

The funding will help Scalable expand its robo-advice business - which uses low-cost exchange-based funds and online distribution - with financial institutions and corporates to help grow assets past the 250 million euros raised in the 16 months since launch from more than 6,000 retail clients.

The expansion of BlackRock's digital efforts comes as fund and wealth managers globally look to overhaul their distribution models amid tougher regulation, pressure on fees and the changing investment needs of a younger generation.

For more visit: reuters.com

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