BlackRock introduced early Friday that it has agreed to amass the remaining fairness curiosity in SpiderRock Advisors, a agency managing practically $5 billion in one of many fastest-growing product segments within the U.S. wealth business: individually managed accounts.

The monetary phrases of the deal weren’t disclosed. The agency’s announcement states the transaction is predicted to shut within the second quarter, whereas the monetary influence of the transaction is “not materials to BlackRock earnings.”

The total acquisition of SpiderRock comes about two and a half years after BlackRock first acquired a minority stake within the supplier of personalized possibility overlay methods within the U.S. wealth market.

Knowledge from Cerulli Associates reveals SMAs are anticipated to develop from $2.7 trillion in belongings at this time to $4 trillion by 2026. The anticipated development is fueled by a elementary consumer want, in keeping with BlackRock, to customise portfolios for tax administration, values alignment or different funding outcomes.

“By giving BlackRock extra SMA capabilities, this acquisition will allow us to fulfill rising demand from wealth managers for customized, tax-efficient portfolios,” mentioned Joe DeVico, co-head of BlackRock’s U.S. wealth advisory enterprise. “We stay up for absolutely integrating SRA’s group and capabilities into our U.S. wealth advisory enterprise and to additional increasing our choices in SMA options.”