Citi selects BlackRock to manage $80 billion in wealth client assets

NEW YORK - Citi Wealth announced Thursday it has selected BlackRock to manage approximately $80 billion in client assets currently handled by Citi Investment Management (CIM), marking the largest agreement of its kind. The announcement comes as Citi, currently valued at $175 billion, shows strong market momentum with a 61% return over the past year and trading near its 52-week high. According to InvestingPro analysis, Citi appears undervalued based on its Fair Value estimates.

The new offering, "Citi Portfolio Solutions powered by BlackRock," will combine Citi’s strategic investment advisory and planning capabilities with BlackRock’s investment management expertise and technology platform. With a P/E ratio of 13.7 and a steady dividend yield of 2.53%, Citi maintains its position as a prominent player in the banking sector. InvestingPro subscribers can access 12 additional key insights about Citi’s financial health and growth prospects through detailed Pro Research Reports.

Under the agreement, BlackRock will manage various investment strategies across equities, fixed income, multi-asset class portfolios and eventually private markets for thousands of Citi Wealth clients located in nearly 100 countries.

Citi clients will maintain their primary relationship with their Citi Private Banker, who will continue to advise on overall wealth approaches, including strategic asset allocation and long-term financial goals, while BlackRock will implement the specific investment strategies.

"We want to bring best-in-class advice, solutions and service to our clients," said Andy Sieg, Head of Wealth at Citi. "With this offering, we can accomplish both."

As part of the arrangement, certain CIM team members will join BlackRock where they will continue to serve as portfolio managers on existing strategies for Citi clients.

The agreement also includes the deployment of BlackRock’s Aladdin Wealth technology platform to Citi’s Private Bankers and investment professionals, providing advanced risk assessment, portfolio management and data insight capabilities.

"As investor appetite grows for custom built, whole portfolio solutions, BlackRock continues to invest in our global investment platform to stay at the forefront of clients’ evolving needs," said Sir Robert Fairbairn, Vice Chairman at BlackRock.

The agreement is expected to begin in the fourth quarter of 2025, subject to customary approvals and conditions, and is not expected to materially impact Citi’s previously disclosed revenue or return targets, according to the press release statement.

Citi Wealth currently oversees more than $1 trillion in client balances, including $635 billion in client investment assets as of the second quarter of 2025. For investors seeking deeper insights into Citi’s financial performance and future prospects, InvestingPro offers comprehensive analysis, including exclusive Fair Value calculations and financial health scores that help identify investment opportunities in the banking sector.

In other recent news, Citigroup Inc. announced a significant partnership with BlackRock Inc., transferring $80 billion in client assets to BlackRock as part of closing its in-house asset management operations. This move will see BlackRock managing assets for Citigroup’s wealthiest clients, adding to its existing management of a portion of Citigroup’s $635 billion in client investments. Additionally, Truist Securities has raised its price target for Citigroup to $105, maintaining a Buy rating, citing improved return on tangible common equity (ROTCE). In another development, Citigroup is reorganizing its debt capital markets team in the UK, Europe, Middle East, and Africa, with Rob Cascarino from JPMorgan Chase joining as co-head of the team. Citibank also announced the redemption of $2.5 billion in notes due in 2025 as part of its liability management strategy. Furthermore, Fitch Ratings has affirmed Citigroup’s long-term and short-term issuer default ratings at ’A’ and ’F1’, respectively, with a stable outlook. These recent developments reflect ongoing strategic adjustments and financial evaluations for Citigroup.

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