BlackRock and Partners Group have formed an alliance to offer an investment product aimed at increasing retail investors’ access to the private markets, as top asset managers tap into the private-wealth channel for a larger base of capital.
In their announcement, the two alternative managers said their multi-private market model combines private equity, private credit, and real assets into one portfolio. The product will offer retail investors choice of three different risk profiles.
The partnership between BlackRock and Switzerland-based Partners Group comes as other large asset managers have recorded substantial inflows via the private-wealth channel.
Private equity’s biggest firms—Blackstone, KKR, Apollo, Carlyle, Ares, TPG, and Blue Owl—amassed about $62.4 billion in private-wealth capital over the 12 months ending June 30, according to PitchBook’s Q2 2024 US Public PE and GP Roundup.
In line with this trend, BlackRock said it is bullish about scaling its private wealth offerings, with expectations that managed-model portfolio assets will reach $10 trillion over the next five years.
In June, BlackRock entered into a partnership with GeoWealth, an asset management platform, to help wealth advisers create custom models for high-net-worth clients who want access to private markets.
The same month, Partners Group opened an office in Hong Kong to expand the firm’s private wealth client base by adding local strategic distribution partners for their private market solutions.
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