BlackRock (NYSE: BLK) has gone live with a “customizable” public-private model portfolio within a Unified Managed Account (UMA). The models are powered by GeoWealth’s UMA technology and supported by iCapital’s underlying technology capabilities.”
The launch marks the “first” time a customizable model portfolio that includes access to both “private and public market assets is available through a UMA, featuring streamlined administration and custodial integration.”
Advisors are increasingly turning to models-based solutions to “meet demands for more tailored products and access to diversified exposures.”
This collaboration is designed to simplify and “enhance advisors’ ability to allocate across public and private markets.”
Jaime Magyera, Co-Head of BlackRock’s U.S. Wealth Advisory Business.
“This launch represents a significant step forward, helping advisors allocate across both public and private markets all in one unified, professionally managed portfolio. BlackRock’s mission is to make investing easier and help more people access the full power of capital markets. Through our partnership with GeoWealth and iCapital, we are doing just that, helping advisors deliver differentiated service and outcomes for their clients across their whole portfolio.”
BlackRock is a leading provider of models, with “approximately $300 billion in assets in such models, globally.”
As more RIAs adopt model portfolios into their practices, managed models present a significant growth opportunity, “driven by the customization, efficiency and scalability of these solutions.”
BlackRock expects managed model portfolios to roughly “double in assets over the next four years, growing from $5 trillion today into a $10 trillion business.”
BlackRock’s custom models business is its “fastest growing models segment, accounting for $50 billion in new assets over the past 5 years.”
Tech enhancements to better enable “portfolio management and data analytics are also driving the growing adoption of model portfolios among RIAs.”
This theme underscores the broader benefits of the collaboration with iCapital, a global fintech platform “helping drive the world’s alternative investment marketplace, and GeoWealth, a proprietary technology and turnkey asset management platform (TAMP) serving RIAs.”
These models will provide advisors with “intuitive workflows, efficient reporting tools, and comprehensive investment management capabilities throughout the investment’s lifecycle.”
iCapital’s Multi-Investment Workflow Tool streamlines “the entire alternative assets investing experience.”
BlackRock reportedly 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 a quarter of BlackRock’s revenues in 2024.”
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