The news: Citi Wealth is collaborating with BlackRock to create a customized portfolio offering for its clients, per a press release. The new offering is scheduled to launch in Q4 2025 pending regulatory approval.

The details: BlackRock will manage approximately $80 billion in assets for thousands of Citi Wealth clients, making it the largest agreement of its kind for both firms. The collaboration will give Citi clients broader access to investment strategies spanning equities, fixed income, multi-asset classes, and eventually private markets. 

While BlackRock will manage specific investment strategies, Citi's private bankers will advise clients on their overall wealth strategies and financial goals.

Why this matters: Citi is leveraging BlackRock's scale and expertise to focus on its core strength: personalized, high-level advisory services. This is part of CEO Jane Fraser’s broader strategy to streamline operations and boost profitability in Citi's wealth management division.

In addition, this move highlights the opportunities that partnerships create. In this case it allows Citi to offer more personalized services through a new platform as well as through the more efficient personalized guidance of experts. This follows the bank’s recent deployment of two new AI solutions that will supercharge client communications.