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
BlackRock (NYSE: BLK) today 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.
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
Chicago, IL. For more, please visit www.geowealth.com.
Special Note Regarding Forward-Looking Statements
This press release, and other statements that BlackRock may
make, may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act, with respect to
BlackRock’s future financial or business performance, strategies or
expectations. Forward-looking statements are typically identified
by words or phrases such as “trend,” “potential,” “opportunity,”
“pipeline,” “believe,” “comfortable,” “expect,” “anticipate,”
“current,” “intention,” “estimate,” “position,” “assume,”
“outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,”
“achieve,” and similar expressions, or future or conditional verbs
such as “will,” “would,” “should,” “could,” “may” and similar
expressions.
BlackRock cautions that forward-looking statements are subject
to numerous assumptions, risks and uncertainties, which change over
time. Forward-looking statements speak only as of the date they are
made, and BlackRock assumes no duty to and does not undertake to
update forward-looking statements. Actual results could differ
materially from those anticipated in forward-looking statements and
future results could differ materially from historical
performance.
BlackRock has previously disclosed risk factors in its SEC
reports. These risk factors and those identified elsewhere in this
press release, among others, could cause actual results to differ
materially from forward-looking statements or historical
performance and include: (1) the introduction, withdrawal, success
and timing of business initiatives and strategies; (2) changes and
volatility in political, economic or industry conditions, the
interest rate environment, foreign exchange rates or financial and
capital markets, which could result in changes in demand for
products or services or in the value of assets under management;
(3) the relative and absolute investment performance of BlackRock’s
investment products; (4) BlackRock’s ability to develop new
products and services that address client preferences; (5) the
impact of increased competition; (6) the impact of future
acquisitions or divestitures, including the acquisition of Global
Infrastructure Management, LLC (referred to herein as Global
Infrastructure Partners ("GIP") or the "GIP Transaction")” (7)
BlackRock’s ability to integrate acquired businesses successfully,
including GIP; (8) risks related to the GIP Transaction, including
the possibility that the GIP Transaction does not close, the
failure to satisfy the closing conditions, the possibility that
expected synergies and value creation from the GIP Transaction will
not be realized, or will not be realized within the expected time
period, and impacts to business and operational relationships
related to disruptions from the GIP Transaction; (9) the
unfavorable resolution of legal proceedings; (10) the extent and
timing of any share repurchases; (11) the impact, extent and timing
of technological changes and the adequacy of intellectual property,
data, information and cybersecurity protection; (12) the failure to
effectively manage the development and use of artificial
intelligence; (13) attempts to circumvent BlackRock’s operational
control environment or the potential for human error in connection
with BlackRock’s operational systems; (14) the impact of
legislative and regulatory actions and reforms, regulatory,
supervisory or enforcement actions of government agencies and
governmental scrutiny relating to BlackRock; (15) changes in law
and policy and uncertainty pending any such changes; (16) any
failure to effectively manage conflicts of interest; (17) damage to
BlackRock’s reputation; (18) increasing focus from stakeholders
regarding ESG matters; (19) geopolitical unrest, terrorist
activities, civil or international hostilities, and other events
outside BlackRock’s control, including wars, natural disasters and
health crises, which may adversely affect the general economy,
domestic and local financial and capital markets, specific
industries or BlackRock; (20) climate-related risks to BlackRock’s
business, products, operations and clients; (21) the ability to
attract, train and retain highly qualified and diverse
professionals; (22) fluctuations in the carrying value of
BlackRock’s economic investments; (23) the impact of changes to tax
legislation, including income, payroll and transaction taxes, and
taxation on products, which could affect the value proposition to
clients and, generally, the tax position of the Company; (24)
BlackRock’s success in negotiating distribution arrangements and
maintaining distribution channels for its products; (25) the
failure by key third-party providers of BlackRock to fulfill their
obligations to the Company; (26) operational, technological and
regulatory risks associated with BlackRock’s major technology
partnerships; (27) any disruption to the operations of third
parties whose functions are integral to BlackRock’s exchange-traded
funds platform; (28) the impact of BlackRock electing to provide
support to its products from time to time and any potential
liabilities related to securities lending or other indemnification
obligations; and (29) the impact of problems, instability or
failure of other financial institutions or the failure or negative
performance of products offered by other financial
institutions.
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version on businesswire.com: https://www.businesswire.com/news/home/20240626054758/en/
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
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