Citigroup to outsource $80 billion in client assets to BlackRock - Bloomberg

Published 04/09/2025, 14:00
Citigroup to outsource $80 billion in client assets to BlackRock - Bloomberg

Investing.com -- Citigroup Inc. will transfer tens of billions of dollars of client investments to BlackRock Inc. as part of a new partnership that will close the bank’s last remaining in-house asset management operations.

The companies announced Thursday that BlackRock will manage assets for thousands of Citigroup’s wealthiest clients who currently have accounts with Citi Investment Management. BlackRock will take on the final $80 billion that the bank still oversees internally, adding to its existing management of a portion of Citigroup’s $635 billion in client investments.

"We are not in the position to take this platform and make it twice as big ourselves — not nearly as strong a position as we will be working with BlackRock," said Andy Sieg, head of Citigroup’s wealth business, in an interview at Bloomberg’s New York headquarters. "We’ve got the world’s most global bank working with the world’s leading asset manager to make this happen."

While Citi Investment Management will continue to exist as part of the bank’s wealth unit, the proprietary asset management operations and some portfolio managers led by Robert Jasminski will transfer to BlackRock. According to Citigroup spokesperson Mark Costiglio, fewer than 100 Citigroup employees will move to BlackRock as part of this transition.

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