BlackRock and Partners Group Launch First-of-its-Kind Multi-Asset Private Markets Solution for the Wealth Market

BlackRock Inc. (2024, September 12). BlackRock and Partners Group launch private markets SMA for wealth platforms. https://www.blackrock.com/corporate/newsroom/press-releases/article/corporate-one/press-releases/blackrock-and-partners-group-launch-private-markets-sma-for-wealth-platforms

• BlackRock and Partners Group have partnered to launch a first-of-its-kind retail solution that provides access to private equity, private credit, and real assets within a single managed account.

• The collaboration aims to simplify private markets investing for financial advisors by offering a diversified, multi-asset portfolio through a streamlined "one-click" subscription process.

• The solution utilizes a sub-advised model that combines BlackRock’s extensive portfolio management capabilities with Partners Group’s deep expertise in private markets investment.

• The initiative addresses the growing demand from wealth managers for institutional-quality private market exposure as individual investors seek to diversify beyond traditional public equities and bonds.

• By integrating this solution into existing wealth platforms, the firms intend to reduce the operational complexity and high entry barriers typically associated with private market investments.

• BlackRock’s Aladdin technology platform will provide the necessary infrastructure for risk management and reporting to support the new managed account framework.

• This partnership reinforces the broader industry trend of democratizing alternative investments for high-net-worth individuals and retail wealth management clients.

Knote: One very viable strategy for Alts2Wealth scaling in the early days is prepackaged portfolios from single providers or narrow partnerships. I think we will see quite a few of these sorts of announcements this year. Eventually, and perhaps very quickly, we will likely see a shift to open architecture where portfolios are built with product from many managers, which is a trend we have seen before and seems to be a clear preference for wealth managers.