BlackRock and Partners Group Launch U.S. Wealth Fund

BlackRock and Partners Group unveil a groundbreaking fund, offering U.S. investors access to private equity, credit, and real assets in one portfolio.

BlackRock and Partners Group have joined forces to unveil a groundbreaking multi-private markets models solution that promises to revolutionize the way retail investors engage with alternative investments. In a statement released on September 12, BlackRock announced that this innovative solution will grant access to private equity, private credit, and real assets within a single portfolio—an offering currently absent from the U.S. wealth market—managed collaboratively by BlackRock and Partners Group.

This pioneering solution is designed to empower financial advisers to present a diversified alternatives portfolio, all while maintaining the simplicity, efficiency, and practice management advantages typically associated with traditional public markets models. The strategic alliance melds BlackRock’s seasoned alternatives team and operational prowess, bolstered by Aladdin technology, with Partners Group’s extensive history of innovation in integrating private markets into the wealth sector, leveraging its comprehensive investment platform and portfolio management expertise.

The solution streamlines access through a singular subscription document, eliminating the cumbersome requirement of multiple subscription documents for each underlying fund. It boasts robust operating procedures and risk management protocols, including model rebalancing and thorough private markets asset allocation. Retail wealth investors will have the option to select from three distinct risk profiles to tailor their allocations to the funds offered by BlackRock and Partners Group, encompassing BlackRock’s private equity, private credit, and systematic funds, alongside Partners Group’s private equity, growth equity, and infrastructure funds.

Retail wealth investors are at the forefront of embracing private markets, driven by a desire for portfolios that provide exposure to companies and assets beyond the reach of public markets, thereby unlocking the potential for uncorrelated returns. In 2020, these investors allocated a staggering $2.3 trillion to private markets, with projections indicating an increase to $5.1 trillion by 2025, as per a Morgan Stanley/Oliver Wyman study. The managed models also represent a significant growth opportunity, with BlackRock anticipating that managed model portfolios will approximately double in assets under management (AUM) over the next five years, evolving into a $10 trillion business.

Overall, BlackRock perceives substantial growth potential within the U.S. private wealth sector and is strategically positioning itself to become an essential, holistic portfolio partner for advisers navigating an increasingly intricate market landscape. The U.S. Wealth Advisory division is a pivotal growth driver for BlackRock, contributing a quarter of the firm’s revenues in 2023. Meanwhile, Partners Group has amassed over two decades of leadership in managing private markets evergreen solutions, having launched its inaugural product in 2001. Notably, the firm introduced the first U.S. private equity evergreen fund in 2009, which continues to hold the title of the largest in the market, boasting a total fund size of $15.5 billion. As of June 30, 2024, evergreen funds constituted 30% of Partners Group's global AUM.

BlackRock and Partners Group Launch U.S. Wealth Fund

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