BlackRock Teams With GeoWealth to Offer Custom Models Featuring Simplified Access to Private Markets
BlackRock (NYSE: BLK) has announced a strategic partnership with financial technology firm GeoWealth to offer custom models that integrate private markets, direct indexing, and fixed income SMAs alongside ETFs and mutual funds in a single account. This initiative aims to address the $37 trillion U.S. wealth market by simplifying access to various asset classes for advisors.
BlackRock's custom models business, which has generated $31 billion in new assets over the past four years, will be expanded through GeoWealth’s platform. This strategic move is expected to streamline and scale the integration of public and private markets, enhancing advisors' ability to create diversified, personalized, and tax-efficient portfolios.
GeoWealth's platform, with over $28 billion in assets and nearly 200 RIAs as of December 31, 2023, will enable the implementation of these custom models. The partnership aims to leverage BlackRock's portfolio design expertise and GeoWealth's technology to innovate and improve the advisor experience.
- Strategic partnership with GeoWealth to offer custom models, enhancing BlackRock's capabilities in the $37 trillion U.S. wealth market.
- Expansion of BlackRock's custom models business, which has generated $31 billion in new assets over four years.
- Integration of private markets, direct indexing, and fixed income SMAs with ETFs and mutual funds in a single account, simplifying access for advisors.
- GeoWealth's platform has over $28 billion in assets and nearly 200 RIAs, providing a robust foundation for the partnership.
- The initiative supports advisors in creating diversified, personalized, and tax-efficient portfolios.
- BlackRock's U.S. Wealth Advisory business is a key growth driver, generating about a quarter of the firm's revenues in 2023.
- None.
Insights
The partnership between BlackRock and GeoWealth is a strategic move aimed at tapping into the $37 trillion U.S. wealth market. This collaboration can be a game-changer for advisors seeking a diversified and customizable asset management option. By offering private markets, direct indexing and fixed income SMAs along with traditional ETFs and mutual funds in a single account, BlackRock is enhancing its value proposition significantly. This could help advisors cater to the increasing demand for personalized and tax-efficient strategies among clients.
From a financial perspective, this move can be seen as a growth driver for BlackRock, which already generates a quarter of its revenues from the U.S. Wealth Advisory business. The integration is expected to simplify access to previously hard-to-access asset classes, thus attracting more advisors and clients to its platform. In the short term, this could result in increased assets under management (AUM) for BlackRock, while in the long term, it could solidify its position as a comprehensive solution provider in the wealth management space.
Another key financial implication is the potential for increased fee revenue from managing more complex portfolios that include private market strategies. However, the success of this initiative will heavily depend on the seamless integration of GeoWealth's technology and the effectiveness of BlackRock's portfolio design.
From a market research perspective, this partnership highlights a clear trend towards personalization and diversification in the wealth management industry. Advisors and clients are increasingly looking for solutions that offer a mix of public and private investments and this collaboration addresses that demand head-on. The $31 billion in new assets generated by BlackRock's custom models over the past four years is a testament to the growing appetite for such tailored solutions.
This initiative also aligns with the industry shift towards direct indexing, which allows for greater customization and tax benefits compared to traditional index funds. The addition of fixed income SMAs further enhances the appeal, especially for clients seeking stability and income generation in their portfolios. GeoWealth's existing platform, which already manages over $28 billion across 180,000 accounts, provides a strong foundation for this expansion.
In the long term, this partnership could set a new industry standard for how advisors manage client portfolios, making it more streamlined and efficient. The focus on innovation and enhancing the advisor experience will be important for maintaining competitive advantage. The scalability of GeoWealth's technology will play a significant role in the successful implementation and adoption of these custom models.
Automated Custom Models to Enable Access to Private Markets, Direct Indexing and Fixed Income SMAs in Addition to ETFs and Mutual Funds in a Single Account
“By combining BlackRock’s portfolio design expertise with GeoWealth’s implementation platform, we will make it easier for advisors to build a models-based practice and enable broader access to private markets – one of today’s most sought-after asset classes,” said Eve Cout, Head of Portfolio Design & Solutions within BlackRock’s
The agreement with GeoWealth will expand BlackRock’s custom models business, which represents its fastest growing models segment, generating
“We are excited to collaborate with BlackRock to unlock the next phase of our growth and deliver on key initiatives as we continue building on our proprietary technology,” said Colin Falls, CEO of GeoWealth. “This partnership underscores our dedication to innovation and streamlining the advisor experience.”
As of December 31, 2023, the GeoWealth platform has over
BlackRock sees significant growth opportunity in the
About BlackRock
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate.
About GeoWealth
GeoWealth is a turnkey asset management platform (TAMP) and financial technology solution built specifically for the needs of modern RIAs. GeoWealth’s user-friendly, cost-efficient, integrated technology enables advisors to access a diversified lineup of model portfolios and fully offload mid-and back-office responsibilities, including performance reporting, billing, portfolio accounting and more. Via its customizable open-architecture platform, GeoWealth enables advisors and firms to grow faster and serve clients more efficiently. Founded in 2010, GeoWealth is headquartered in
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Media
BlackRock
Christa Zipf
Phone: 646-231-0013
Email: christa.zipf@blackrock.com
GeoWealth
Will Ruben, StreetCred PR
Phone: 847-208-8289
Email: william@streetcredpr.com
Source: BlackRock
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