BlackRock, the largest asset manager in the world, has reportedly agreed to manage $80 billion in funds for Citibank’s wealth management clients.
Reuters reports that Citi will roll out BlackRock’s Aladdin Wealth platform to its private bankers and investment professionals.
Aladdin Wealth is BlackRock’s specialized version of its renowned Aladdin platform, designed for wealth managers, private banks and financial advisors. It pairs BlackRock’s risk analytics and portfolio management technology with the advisory tools needed to serve individual investors and high-net-worth clients.
Christopher Marinac, director of research at Janney Montgomery Scott, says Citi is “pleased with its existing BlackRock relationship and desires to pass along the remainder of its in-house assets under management.”
Says the Citi exec,
“It is also a way for Citi to get further efficiency gains very quickly since this outsourcing can drop expenses.”
Reuters reports that BlackRock is targeting $400 billion of cumulative private markets fundraising before 2030 as it contends with pressure from lower-fee index strategies.
As part of the push, the firm revealed in June that it would include private assets in its retirement plans, which account for more than half of its assets under management.
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