In an effort to streamline its cash management efforts, BlockRock acquired the startup in June 2017. This underscores a larger effort by asset managers to capitalize on the higher cash inflows that a rising rate environment brings.
Cachematrix’s proprietary cash management platform currently manages around $200 billion in money market investments for banks and asset managers. As the platform allows corporate clients to directly allocate cash to various money market funds, BlackRock will benefit from using it as a distribution channel for its relevant products. This should have a sizable positive impact on value in the long run by boosting the size of assets under management for BlackRock’s money market funds.