BlackRock, Emirates NBD Launch Private Investment Platform for Middle East's Wealthy
1min read BlackRock Inc., the world's largest asset management firm, has joined forces with Emirates nbd, the leading bank in the Emirate of Dubai, to create a private investment platform designed for high net worth clients in the Middle East. This collaboration aims to provide these affluent clients with easier access to alternative asset investments, which have traditionally been the domain of institutional investors.
The partnership will utilize BlackRock's extensive alternative investment platform to offer private market investment solutions to high net worth clients. The initial product offerings will be targeted at Emirates NBD's wealth clients, focusing on both income-generating and growth-oriented strategies. These products will adopt an "evergreen" structure, which offers greater flexibility compared to traditional closed-end funds, making them more suitable for long-term personal investments.
The private market, which includes private credit, private equity funds, real estate, and infrastructure, has become a focal point for the global asset management industry. Despite its relatively limited liquidity, the private market is seen as having higher return potential compared to publicly traded products. The collaboration between blackrock and Emirates NBD is poised to capitalize on this trend, with a long-term goal of making private market investments more accessible to a broader range of Middle Eastern clients.
Under this partnership, BlackRock will provide Emirates NBD with comprehensive support, including market promotion, investor education, product training, and technical assistance. This support will help Emirates NBD expand its product offerings in the private market sector. Rachel Lord, BlackRock's head of international business, highlighted the potential for significant wealth allocation to the private market over the next five years, driven by factors such as investor sentiment, product innovation, technological advancements, and regulatory improvements.
The new platform aims to democratize access to alternative investments, allowing more Middle Eastern clients to participate in a wide range of asset classes. BlackRock's alternative investment platform currently manages over $450 billion in assets, covering more than 50 countries and employing over 1,000 professionals. This extensive global presence and expertise will be instrumental in delivering attractive solutions to Middle Eastern investors.
The collaboration between BlackRock and Emirates NBD represents a strategic move to tap into the growing wealth of the Middle East, particularly among high net worth individuals. By combining Emirates NBD's extensive distribution network in the region with BlackRock's global leadership in private market investments, the partnership is well-positioned to offer compelling investment opportunities to Middle Eastern clients. This initiative underscores the increasing importance of the private market in the global asset management landscape and the potential for significant growth in this sector.
