Major firms announce triple partnership to extend retail investor choices

Three major names in the investment industry have joined forces to extend the opportunities for retail investors to access institutional caliber investments.

Wellington Management and Vanguard, who have a long history of collaboration, along with alternative asset manager Blackstone have announced a partnership to develop simplified multi-asset investment solutions.

“Vanguard and Wellington have worked closely together for 50 years and have long admired Blackstone’s capabilities,” said Jean M. Hynes, CEO of Wellington Management. “We believe the unique combination of our investment expertise and well-respected brands will enable us to provide investors with comprehensive asset class exposure in easy-to-access investment solutions. We look forward to expanding these collaborative efforts over time to address evolving investor needs.”

By making it easier for investors to access both public and private market investments with active and index strategies, the three firms hope to win through their combined complementary strengths: Wellington’s active management and allocation expertise, Vanguard’s active strategies and index funds at low cost, and Blackstone’s leading position as an alternative asset manager and private market solutions provider.  

While the firms have said that the aim is to streamline access to diversified portfolio construction including private market assets, and to help advisors meet client demands for growth and income, the full details of the partnerships’ solutions are yet to be announced but will be in the coming months.

The announcement follows on from other strategic moves from firms seeking gains in the private markets space including State Street Global Advisors and Apollo’s plan for private credit ETFs and BlackRock’s new offering for alts-focused advisors.

Blackstone’s research recently found that advisors are eyeing bigger private market allocations.