BlackRock and Partners Group Launch Joint Private Markets Account for Wealthy Investors

TLDR:

• BlackRock and Partners Group created the first US account combining multiple private asset classes in one.
• Three portfolio options available: income-oriented, balanced growth, and growth-focused for different risks.
• The account invests across seven funds from BlackRock, HPS Investment Partners, and Partners Group combined.
• Partners Group manages $56 billion in evergreen funds while BlackRock oversees $250 billion in separate accounts.

BlackRock Inc. and Partners Group Holding AG have introduced their first collaborative private-markets investment product through Morgan Stanley’s wealth platform.

The separately managed account offers exposure to private equity, private credit, and real assets in a single vehicle.

This marks the first US product enabling clients to access multiple private market segments through one account. The offering targets wealthy individuals as institutional investors reduce private market allocations.

Structured Investment Options for Diverse Risk Appetites

The new separately managed account provides three distinct portfolio configurations tailored to different investor objectives. According to Jon Diorio, BlackRock’s head of alternatives for its US wealth business, clients can select from income-oriented, balanced, or growth-focused variations.

Each configuration draws from seven existing funds managed by BlackRock, HPS Investment Partners, and Partners Group. The structure aims to make it “easier and more convenient and more simplified for advisers to do private markets,” Diorio said.

The product charges fees only on the underlying funds, with no additional fees at the account level. The firms declined to disclose specific fee amounts for the underlying investments.

This fee structure represents a departure from typical separately managed account arrangements. The approach reflects efforts to make private market investments more accessible to wealth management clients.

Rob Collins, co-head of private wealth at Partners Group, noted the account’s unique position in the market. Collins explained that the offering “is the only separately managed account that combines more than one private asset class.”

BlackRock contributes its separately managed account expertise, while Partners Group brings experience with evergreen fund structures. The partnership leverages each firm’s core competencies in wealth management and alternative investments.

The collaboration between BlackRock and Partners Group began in 2024 with plans for this private portfolio offering. Since the partnership’s formation, BlackRock has expanded its private markets capabilities significantly.

The firm acquired HPS Investment Partners for $12 billion, strengthening its position in private credit markets. This acquisition enhances the resources available for the jointly managed account.

Market Dynamics Driving Wealth-Focused Product Development

Asset managers face shifting demand patterns as institutional investors reassess private market commitments. Pensions and endowments have reduced allocations to new private investments in recent periods.

This trend has prompted traditional and alternative managers to target wealthy individuals more aggressively. The competition for wealth management distribution has intensified across the industry.

Partners Group manages approximately $56 billion in evergreen fund assets under management. These open-ended perpetual vehicles allow investors greater flexibility in buying and selling positions.

The structure addresses liquidity concerns that often accompany traditional private market investments. BlackRock operates a broader separate-account business managing roughly $250 billion in total assets.

The Morgan Stanley wealth platform provides distribution infrastructure for the new product. Morgan Stanley‘s adviser network gives BlackRock and Partners Group access to high-net-worth and ultra-high-net-worth clients.

The platform integration streamlines the investment process for advisers recommending private market exposure. This distribution partnership proves essential for reaching the target investor base.

The jointly managed account represents a strategic response to changing market conditions. Asset managers must adapt their product offerings as traditional institutional funding sources contract.

Wealthy individuals represent a growing opportunity for private market strategies. The BlackRock-Partners Group collaboration exemplifies industry efforts to tap this expanding market segment through innovative product structures.