BlackRock Incorporates Private Investments Into Individual Portfolios

BlackRock Inc. BLK is integrating private equity and credit investments into pre-built portfolios to cater to rising demand among individual investors. Jaime Magyera, co-head of BlackRock’s US wealth advisory business, revealed in an interview with Bloomberg.Details of BLK’s Model PortfoliosBlackRock designed model portfolios that combine publicly traded stocks and bonds alongside more sophisticated private equity and credit funds, with plans to add other alternatives over time. The company claims the offering to be the first of its kind in the asset management industry.The managed models enable financial advisers to provide alternative investment options to clients who previously had limited exposure to private markets.Magyera stated, “For years, advisers have been looking for access to private markets. Being able to bring access to private markets lower down the wealth spectrum — which traditionally has been family office, ultra, ultra-high-net-worth — is the goal.”Private markets would contribute roughly 15% to the total investments in the portfolios on average, which will be customizable. The fee to be charged was kept under wraps.Rationale Behind BlackRock’s MoveBLK’s move aligns with the company’s recent strategic acquisitions, valued at nearly $28 billion, to enhance its private markets capabilities and capitalize on the rising demand for private markets, thereby generating higher fee income.The company acquired Global Infrastructure Partners for $12.5 billion, Preqin for £2.55 billion ($3.3 billion), and is in the process of completing a $12 billion acquisition of private credit firm HPS Investment Partners.Further, the company collaborated with Partners Group last year to combine a varied pool of private assets into a single portfolio of alternatives for retail clients.Thus, the current product launch aligns with BlackRock’s strategy to expand its private markets capabilities and aims to offer diversified offerings to offer higher risk-adjusted returns to its investors.Product Expansion Efforts by Other Finance FirmsEarlier this month, SEI Investments Co. SEIC announced the launch of SEI Strategies in collaboration with Capital Group to enhance tax solutions for its clients through model portfolios.SEI Investments aims to capitalize on the rising demand for model portfolios as investors seek better tax solutions and investment strategies.The newly launched model portfolios complement SEI Investments’ existing suite of core building block solutions for investor portfolios.Similarly, Robinhood Derivatives, LLC, a wholly-owned subsidiary of Robinhood Markets, Inc. HOOD, launched a prediction markets hub directly within the Robinhood app, allowing customers to trade on the outcomes of several major global events, including the expected upper limit of the Federal Reserve funds rate in May.The launch of the prediction markets hub aligns with Robinhood’s objective to become a full-service financial firm and compete with dominant derivatives brokers.Initially, Robinhood’s prediction markets hub will be available across the United States through KalshiEX LLC, a Commodity Futures Trading Commission-regulated exchange.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BlackRock (BLK): Free Stock Analysis Report SEI Investments Company (SEIC): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks