BlackRock to ramp up custom models business with GeoWealth partnership

BlackRock has entered into a strategic partnership with financial technology firm GeoWealth, expanding its offerings in the $37 trillion US wealth market.

The collaboration, unveiled Wednesday morning, will enable advisors to access private markets, direct indexing, and fixed income SMAs through GeoWealth’s platform, alongside traditional ETFs and mutual funds, in a single account.

“By combining BlackRock’s portfolio design expertise with GeoWealth’s implementation platform, we will make it easier for advisors to build a models-based practice and enable broader access to private markets – one of today’s most sought-after asset classes,” Eve Cout, head of portfolio design and solutions within BlackRock’s US wealth advisory business, said in a statement Wednesday.

Cout emphasized the goal of meeting evolving client needs for diversified, personalized, and tax-efficient strategies.

GeoWealth, founded in 2010 and headquartered in Chicago, is a turnkey asset management platform designed for modern RIAs.

“We are excited to collaborate with BlackRock to unlock the next phase of our growth and deliver on key initiatives as we continue building on our proprietary technology,” said Colin Falls, CEO of GeoWealth, underscoring the partnership as a testament to his firm’s “dedication to innovation and streamlining the advisor experience.”

The partnership aims to bolster BlackRock’s custom models business, which has attracted $31 billion in new assets over the past four years.

Those models, including private market strategies, will soon be available on GeoWealth’s platform, providing advisors with a streamlined and scalable solution that integrates both public and private market investments, which have been historically challenging to access for investors outside of the high-net-worth and institutional crowd.

The partnership builds on GeoWealth’s pre-existing partnership with BlackRock. Since 2021, its platform has offered products from the world’s largest asset manager; more recently this year, it launched fixed income SMAs and SMAs from Aperio, which BlackRock snapped up in a landmark acquisition unveiled in late 2020.

As of December 31, 2023, GeoWealth’s platform managed over $28 billion across more than 180,000 accounts and nearly 200 RIAs. In 2023, GeoWealth expanded its third-party model marketplace to feature over 700 models from more than 70 asset managers.

With a focus on growth in the US wealth market, BlackRock is positioning itself as a comprehensive portfolio partner for advisors in an increasingly complex environment. The US wealth advisory business remains a key growth driver for BlackRock, contributing approximately a quarter of the firm’s revenues in 2023.