BlackRock and Partners Group Launch Private Markets SMA for Wealth Platforms
In a move to simplify access to alternative investments, BlackRock and Partners Group have officially launched a multi-alternatives separately managed account solution for wealth platforms. The new offering is designed to bundle historically fragmented private market strategies into a single, scalable account.
The platform, according to the companies, features three purpose-built strategies designed to align with specific client objectives while reducing operational friction for advisers. The platform is income-focused, prioritizing yield and cash flow; balanced, aiming for a mix of growth and stability; and focused on long-term capital appreciation.
These strategies provide diversified exposure across private equity, private credit, and real assets through seven underlying evergreen funds managed by BlackRock and Partners Group, as well as HPS, which fully affiliated with BlackRock last summer.
“This launch transforms the delivery of alternatives from standalone products into a portfolio solution and helps simplify how financial advisers access private markets for their clients,” said Jon Diorio, head of alternatives for BlackRock’s U.S. wealth business. “By combining the breadth of BlackRock’s private markets platform, expertise in portfolio construction and SMA capabilities with Partners Group’s deep private markets expertise, we are delivering a powerful, holistic private markets solution for financial advisers to help their clients access the broader opportunity set and achieve better portfolios outcomes.”
The SMA strategies are now available to advisers on the Morgan Stanley wealth platform.
The launch aims to address a significant gap in private market participation among individual investors. A recent BlackRock survey of over 1,000 U.S. financial advisers revealed that while more than half now invest in private markets, average portfolio allocations remain modest at approximately 7%.
Advisers cited several key barriers to higher allocations. Sixty-eight percent of advisers expressed a need for more education on constructing portfolios with private assets. Some noted challenges associated with fragmentation, as traditional private market investing often requires multiple subscription documents and complex reporting. BlackRock and Partners Group said that the new SMA solution streamlines these hurdles and is more scalable by utilizing a single subscription document for the entire portfolio.
The collaboration combines BlackRock’s extensive SMA platform, which oversees more than $250 billion in assets, with Partners Group’s 25-year track record in managing private markets evergreen funds.
“This solution represents a transformational step forward in how private markets are delivered to the wealth channel,” said Rob Collins, co-head of private wealth at Partners Group. “By embedding diversified private markets exposure into a scalable, outcome-oriented SMA structure, we are helping advisers move beyond product selection toward a more holistic portfolio solution that provides access to an increasingly important part of the real economy.”
Click here to visit the AltsWire directory page.
