BlackRock announced a strategic partnership with financial technology firm GeoWealth expanding BlackRock’s capabilities to meet client needs in the $37 trillion U.S. wealth market. Through the partnership, BlackRock will offer custom models via GeoWealth’s platform that enable advisors to meet client demand for private markets, direct indexing and fixed income SMAs – in addition to traditionally offered 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 U.S. Wealth Advisory business. “This initiative supports our goal of helping more and more advisors meet the evolving needs of their clients, who increasingly seek more diversified, personalized and tax-efficient strategies.”
The agreement with GeoWealth will expand BlackRock’s custom models business, which represents its fastest growing models segment, generating $31 billion in new assets over the past four years. BlackRock currently partners with several wealth platforms that offer implementation of custom models. Some of the first custom models to be available on GeoWealth’s platform are expected to include private market strategies alongside ETFs and mutual funds. That offering will provide advisors with a streamlined and scalable solution that combines public and private markets in one portfolio solution, simplifying access to an in-demand yet historically difficult-to-access asset class.
“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 $28 billion across more than 180,000 accounts and nearly 200 RIAs. In 2023, GeoWealth expanded its third-party model marketplace to include over 700 models from more than 70 asset managers. GeoWealth began offering BlackRock products in 2021, including BlackRock’s standard models, and launched Aperio and fixed income SMAs as standalone strategies earlier this year.
BlackRock sees significant growth opportunity in the U.S. wealth market and is actively positioning the firm to become an integral, whole portfolio partner to advisors in an increasingly complex environment. Overall, BlackRock’s U.S. Wealth Advisory business is a key growth-driver for the firm, generating approximately a quarter of BlackRock’s revenues in 2023.
Source: BlackRock
