Citigroup Partners with BlackRock to Launch $80B Portfolio Offering

Citigroup and BlackRock have partnered to launch a new customized portfolio offering for global wealth clients, with BlackRock managing approximately $80 billion in assets. The agreement will leverage BlackRock's Aladdin Wealth technology platform and provide clients with access to customized portfolio solutions spanning public and private markets. The deal reflects a broader trend in wealth management, where banks collaborate with asset managers to enhance client offerings without building in-house capabilities.

Citigroup and BlackRock have announced a strategic partnership to launch a new customized portfolio offering for global wealth clients. Under the agreement, BlackRock will manage approximately $80 billion in assets for Citi Wealth clients, leveraging its Aladdin Wealth technology platform to provide tailored investment solutions across public and private markets.

The collaboration reflects a broader trend in wealth management, where banks are increasingly partnering with specialist asset managers to enhance client offerings without building in-house capabilities. Citigroup, in particular, is focusing on simplifying its core operations and sharpening profitability in wealth management, as part of CEO Jane Fraser’s restructuring push.

Under the agreement, clients currently served by Citi Investment Management (CIM) will continue to receive wealth advisory, asset allocation, and strategy guidance from their Citi private bankers. BlackRock will be responsible for managing and executing those strategies, while Citi will roll out BlackRock’s Aladdin Wealth platform to its private bankers and investment professionals.

The partnership is expected to begin in the fourth quarter of 2025, subject to customary approvals and conditions. Some CIM employees will join BlackRock as portfolio managers for Citi clients, while the firms will also develop new products and solutions for the benefit of Citi clients by leveraging BlackRock’s scale, infrastructure, and capabilities.

The agreement is not expected to have a material impact on Citi’s previously disclosed revenue or return targets. However, it represents a significant step forward in Citi’s efforts to deliver best-in-class advice and solutions to its clients.

References:
[1] https://www.reuters.com/business/blackrock-run-80-billion-citi-bank-refocuses-wealth-unit-2025-09-04/
[2] https://www.livemint.com/market/stock-market-news/blackrock-to-manage-80-billion-for-citigroup-as-bank-refocuses-wealth-business-11757036631058.html
[3] https://www.morningstar.com/news/business-wire/20250904755362/citi-to-deliver-new-customized-portfolio-offering-powered-by-blackrock-to-citi-wealth-clients-globally