Citi Wealth, part of Citigroup (NYSE: C), has announced a partnership with BlackRock (NYSE: BLK) to launch Citi Portfolio Solutions powered by BlackRock, a customized portfolio offering designed to elevate the investment experience for its global clientele.
Unveiled this month, this collab reportedly combines Citi’s advisory expertise with BlackRock’s investment management know-how and technology, setting a standard for personalized wealth solutions.
Expected to roll out in the fourth quarter of 2025, pending regulatory approvals, this initiative marks the largest agreement of its kind, with BlackRock tasked to manage approximately $80 billion in assets for Citi Wealth clients across nearly 100 countries.
The partnership seemingly signals a shift in Citi’s wealth management strategy, aligning with broader industry trends toward outsourcing and technological integration.
Citi Wealth, which oversees more than $1 trillion in client balances, including $635 billion in investment assets as of Q2 2025, is streamlining its operations by closing its in-house asset manager, Citi Investment Management (CIM).
Instead, BlackRock will take over the management of these assets, encompassing a range of core, opportunistic, and thematic investment strategies across equities, fixed income, multi-asset classes, and, over time, private markets.
This move allows Citi to focus on its core strength: delivering more relationship-driven advisory services to affluent, high-net-worth, and ultra-high-net-worth clients.
A cornerstone of this collaboration is BlackRock’s Aladdin Wealth® platform, a sophisticated tool that will empower Citi’s private bankers and investment professionals with risk management, portfolio oversight, and data analytics capabilities.
This technology integration is expected to enhance efficiency, reduce operational costs, and provide real-time insights, enabling precise and tailored investment strategies.
As part of the agreement, select CIM portfolio managers will transition to BlackRock, ensuring continuity for clients while leveraging BlackRock’s scale and expertise.
The partnership also paves the way for the development of new products and solutions, expanding the investment options available to Citi clients.
By maintaining primary relationships with Citi private bankers, clients will continue to receive personalized guidance on strategic asset allocation and long-term financial goals, while BlackRock handles the implementation of specific investment strategies under Citi’s oversight.
This hybrid model blends boutique-style service with global reach, aligning with Citi’s open-architecture approach to wealth management.
For BlackRock, the deal represents an opportunity to expand its footprint in wealth management.
The agreement aligns with BlackRock’s strategic push into private markets, with plans to incorporate these assets into Citi’s offerings over time, reflecting demand for alternative investments among high-net-worth clients.
This partnership also reflects broader industry dynamics, where banks are increasingly collaborating with specialized asset managers to enhance efficiency and client outcomes.
By outsourcing asset management, Citi can reduce costs—73% of asset managers cite cost reduction as a primary driver for outsourcing—while leveraging BlackRock’s infrastructure to scale globally.
The move is part of CEO Jane Fraser’s ongoing efforts to streamline Citi’s operations and boost profitability in its wealth division, a critical component of the bank’s global strategy.
Expected to positively impact wealth management, Citi Portfolio Solutions enabled by BlackRock aims to provide personalization, technological sophistication, and global investment expertise.
