BlackRock to run US$80 billion for Citi as bank refocuses wealth unit

[NEW YORK] Citigroup said on Thursday (Sep 4) it will transfer about US$80 billion in client assets from its wealth management unit to BlackRock, further outsourcing investment management as it simplifies core operations.

The move highlights a growing trend among big banks to partner with specialist asset managers while refocusing wealth businesses on client advice and financial planning.

Clients currently overseen by Citi Investment Management (CIM) will continue to work with their Citi private bankers for wealth advice, asset allocation and strategy selection.

BlackRock will manage and implement those strategies, and Citi will roll out BlackRock’s Aladdin Wealth platform to its private bankers and investment professionals.

The partnership aligns with CEO Jane Fraser’s restructuring push to streamline operations and sharpen profitability in wealth management, following years of overhauls and job cuts.

Under the agreement, some CIM employees will join BlackRock as portfolio managers for Citi clients.

For BlackRock, the deal brings a sizable inflow and, over time, access to Citi’s private-markets investment strategies.

The asset manager is targeting US$400 billion of cumulative private-markets fundraising by 2030 as it contends with margin pressure from lower-fee index strategies.

The agreement is expected to begin in the fourth quarter of 2025. REUTERS