BlackRock And Partners Group Partnership Looks to Create "iPhone Moment" in Private Markets

In Brief:

The Alt Goes Mainstream podcast hosted executives from BlackRock and Partners Group discussing their groundbreaking partnership on a private markets model portfolio for wealth managers. BlackRock's Joe DeVico (Americas Client Business head) and Jon Diorio (US Wealth Alternatives head) joined Partners Group's Rob Collins (Private Wealth co-head) to explain how they're creating a turnkey solution that makes private markets more accessible to wealth advisors. This partnership combines BlackRock's technology and model portfolio expertise with Partners Group's 18-year experience in evergreen private market funds to simplify the historically complex process of private market investing.

Big Picture Drivers:

• Access gap: Wealth market ($50T) currently has only 5% allocated to private markets

• Simplification: Model portfolios reduce complexity for advisors investing in private markets

• Public-private shift: Economy moving from public to private ownership structures

• Technology evolution: Advanced platforms now better support private market integration

Key Topics Covered:

• Model portfolios: Single-click solution that removes implementation complexity

• Evergreen funds: Monthly subscription, quarterly redemption structures simplify private markets

• Advisor experience: Allows advisors to focus on clients rather than portfolio construction

• Client transparency: Line-item visibility into private equity, credit, and real assets exposures

Key Insights:

• Practice management: Models allow advisors to scale their business while offering sophisticated solutions

• Complementary partnership: BlackRock's model expertise combines with Partners Group's evergreen experience

• Tech-enabled: UMA platforms and better reporting tools make private market integration possible

• Education focus: Teaching advisors how to discuss private markets with clients is critical for adoption

By The Numbers:

• $50 trillion: Size of US wealth market with only $2.5 trillion in private markets

• 87%: Percentage of companies with $100M+ revenue that are private, not public

• $5 trillion: Current model portfolio market expected to grow to $10 trillion in five years

• $150 billion: Size of BlackRock's current models business

Memorable Quotes:

• "We feel with this incredible partnership we are at this iPhone moment. We are changing the paradigm for the industry." - Rob Collins

• "Our president, Rob Capito, always talks about making alternatives less alternative. And we think that this construct will do exactly that." - Jon Diorio

The Wrap: This partnership represents a potential tipping point in democratizing private market access. By addressing the key barriers of complexity, education, and implementation, BlackRock and Partners Group have created what they believe is a transformational solution that could accelerate private market adoption among wealth advisors. As both firms emphasized, the innovation focuses on client outcomes and simplicity - giving advisors more time for client relationships while providing investors exposure to the growing private side of the economy.