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GDG, BlackRock enter major partnership to co-design retirement solution
BlackRock will acquire a $25 million minority stake in Generation Development Group as part of a deal to co-develop a new holistic retirement solution.
In an ASX listing on Thursday, Generation Development Group (GDG) said its subsidiary, Generation Life Limited, has entered a strategic alliance with BlackRock to co-develop and distribute holistic retirement solutions tailored for Australian retirees.
Under the deal, BlackRock will acquire a $25 million minority stake in GDG via a share subscription at $4.15 per share, with the funds set to support the development and rollout of new retirement solutions.
While the alliance is set to explore additional product and service opportunities in the future, its primary focus will be helping retirees transition from accumulation to decumulation by providing sustainable income streams with longevity protection.
“This transformational relationship brings together Generation Life’s innovation in retirement income with BlackRock’s global scale and expertise, delivering solutions that address the evolving needs of Australian retirees while creating long-term value for advisers, superannuation funds, and shareholders,” said GDG CEO Grant Hackett.
Product launch is targeted over the coming year.
Earlier this year, GDG announced the acquisition of 100 per cent of Evidentia Group Holdings for $320 million, marking a significant expansion in the managed accounts sector.
It said at the time that Evidentia, a key provider of investment management and tailored managed account solutions in Australia, would merge with GDG’s Lonsec Investment Solutions and Implemented Portfolios, under the name Evidentia Group, further strengthening its position in the growing managed accounts market – currently valued at over $200 billion and projected to reach $474 billion by 2030.
At the time, Hackett said: “I am excited to announce today that Generation Development Group has entered into a binding agreement to acquire 100 per cent of Evidentia. This transaction represents another significant milestone in GDG’s growth strategy, following the successful acquisition of the remaining equity interests in Lonsec in 2024.
“This transaction will be a continuation of the best-in-class services that both Lonsec and Evidentia have to offer.”
As part of GDG’s broader business realignment, the group said at the time it will operate three distinct businesses: Generation Life, Lonsec Research and Ratings, and Evidentia Group.
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