BlackRock and Partners Group have established a ‘strategic partnership’ and launched a multi-private markets model solution that aims to support retail investors in accessing alternative investments.

The model portfolio solution seeks to streamline retail wealth access to private equity, private credit, and real assets in a single portfolio managed by BlackRock and Partners Group.

The firms stated that the solution will enable advisers to offer a diversified alternatives portfolio with the “simplicity, efficiency and practice management benefits of a traditional public markets model”.

Their partnership aims to bring together BlackRock’s alternatives team, operational expertise and whole portfolio capabilities with Partners Group’s ability to bring private markets to the wealth market, leveraging its investment platform and portfolio management capabilities.

The model portfolio solution can be accessed through a single subscription document, rather than requiring subscription documents for each underlying fund.

It will also seek to provide ‘robust’ operating procedures and risk management, including model rebalancing and ‘comprehensive’ private markets asset allocation.

Retail wealth investors will be able to choose from three risk profiles to determine allocations to BlackRock and Partners Groups funds, including BlackRock’s private equity, private credit, and systematic funds, and Partners Group’s private equity, growth equity, and infrastructure funds.

“We are simplifying how individual investors and advisors access private markets,” said BlackRock head of global client business, Mark Wiedman.

“In a world where private markets are growing by $1trn or more every year, many financial advisers still find it too difficult to help their clients participate. We aim to crack that.

“With Partners Group, we are creating a single, managed account with unified portfolio construction and management.”

Partners Group executive chair, Steffen Meister, added: “This separately managed account solution has the potential to revolutionise the wealth management industry, setting a new benchmark for institutional-quality programs that meet wealth investors’ private markets portfolio needs.

“The financing of business has undergone a major transformation in recent decades with private markets playing a key role in the real economy, so it is vital that investors have access to private markets investments as part of a balanced portfolio.”

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