NEW YORK-- MSCI Inc. (NYSE: MSCI), a leading provider of mission-critical decision support tools and services for the global investment community, today announced it has signed a purchase agreement to acquire Fabric, a wealth technology platform specializing in portfolio design, customization, and analytics for wealth managers and advisors.

Founded in 2019, Fabric was established to provide a previously underserved wealth management community with leading risk and portfolio design technology. Known for its rules-based portfolio construction tools and platform leveraging the MSCI Multi-Asset Class (MAC) Factor Model and MSCI Private Asset Model, Fabric is focused on providing wealth managers and advisors with a platform for modern portfolio design and risk assessment to customize portfolios and help individual investors achieve their unique financial objectives.

There is significant demand from wealth managers and advisors for institutional quality capabilities to build personalized client portfolios at scale and keep pace with evolving trends, risks, and opportunities across sustainability, climate, and more. The combination of MSCI’s total-portfolio toolkit and Fabric’s rules-based portfolio construction capabilities will help wealth managers and advisors streamline investment activities, enable a collaborative experience, report, and offer real-time delivery of insights to better serve their clients and bring more transparency to markets.

Through this deal, MSCI and Fabric’s combined offering will transform wealth managers’ abilities to consistently implement their investment guidance while meeting their client’s personal preferences and delivering customization at scale.

Jorge Mina, Head of Analytics, MSCI, said: “Today, MSCI offers wealth management tools for home office model portfolio construction, product due diligence, portfolio analysis, advisor goal-based planning, sales enablement proposals, and more. This combination with Fabric will not only enhance the use of our existing content and tools, but accelerate the development of new strategic functionalities related to rules-based portfolio construction. This transaction underscores MSCI’s commitment to expanding its market reach and offering a broader spectrum of solutions to meet the diverse needs of both institutional and individual investors.”

Govinda Quish, CEO and Co-Founder, Fabric, commented: “Fabric’s mission has always been focused on serving the global wealth management community by modernizing their approach to portfolio design and risk management. By bringing together our extensive data, systems, and teams, the combination of Fabric and MSCI aims to redefine how wealth managers design, manage, and optimize their clients’ portfolios.”

Rick Bookstaber, Co-Founder and Head of Risk, Fabric, added: “MSCI is a world leader in investment risk management solutions. Fabric has long leveraged MSCI’s leading factor models to power the platform’s risk/return decomposition, portfolio analysis, rebalancing optimization, and scenario analysis, as well as MSCI’s ESG and climate risk data. Together, we look forward to providing wealth managers and advisors with enhanced risk analysis capabilities that can help their clients achieve their investment objectives.”

The terms of the transaction were not disclosed, and the financial impact of the transaction is not expected to be material to MSCI. The transaction is expected to close next quarter, subject to customary closing conditions.