Citi Shuts Down $80B Asset Arm -- Hands It All to BlackRock

Citigroup C is offloading the final $80 billion chunk of its proprietary wealth assets to BlackRock BLK in a sweeping handover that could redefine how global banks scale in a post-pandemic wealth race. The move shuts down Citi's last in-house asset management operation and turns the keys over to BlackRockalready managing a large share of Citi's $635 billion client base. Under the deal, BlackRock will take over portfolio management duties for thousands of Citi's high-net-worth clients, while Citi retains advisory control. About 100 staff, including CIO Robert Jasminski, will make the jump. Completion is targeted for year-end.

This isn't just another asset management outsourcing. It's a structural bet. Andy Sieg, who joined Citi in 2023 to lead the wealth division, said it bluntly: Citi alone couldn't double the platformit needed BlackRock's global engine to scale. Sieg has spent the past year ripping out complexityexiting the trust admin business, cutting headcount, and dumping legacy platforms. Now, the focus is squarely on mass-affluent flows, global private bank reach, and offering institutional-grade products via Citigold. BlackRock, meanwhile, picks up more than AUM. It gains a global partner with boots in key international marketssomething Rob Fairbairn, BlackRock's vice chair, called a critical edge.

The partnership could also pave the way for BlackRock to manage alternative assetsinfra, credit, and beyondfor Citi clients. That would sync with BlackRock's $25 billion shopping spree over the past year (Global Infrastructure Partners and HPS), as it pushes toward a $400 billion private-market target by 2030. And the broader trend? Goldman Sachs GS just poured up to $1 billion into T. Rowe Price to co-sell private assets to retail. The market is speaking. Citi rose 1.4% on the day, BlackRock added 0.4%. Investors seem to like what they're hearing.