THE EVOLVING FOUNDATION OF THE WHOLE PORTFOLIO

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As markets evolve and institutional investors seek new growth opportunities, the flood of interest in private markets has taken center stage. But public markets investments remain the backbone of portfolios—and this space is becoming more diverse as product offerings evolve, the industry experiences consolidation, and the geopolitical environment remains in flux. This complexity offers investors ample opportunities for growth—but only if organizations can scale and stay nimble. As clients increasingly seek access to a diverse range of offerings, product innovation is keeping pace with those evolving needs. With more interest in low-cost products and indexing, for example, active ETFs have gained momentum; public markets investment products will continue to mature with new, innovative wrappers that are tailored to clients’ needs. BlackRock’s own history, with origins in the fixed-income space (and later expansion across public equities and multi-asset solutions), reflects an approach beyond simple innovation-by-necessity—it’s more of what one might call evolution-by-client appetite. It underscores the importance of measuring the behaviors and interactions of those instruments with leading risk models and consistent data. Now, as BlackRock brings that same approach to private markets while leading the effort to close the public-private market divide, tech is at the core of this transformation.

As private markets expand and continue to evolve, it’s critical for institutions to manage data in a way that links public and private investments seamlessly.

A comprehensive understanding of these diverse assets across the whole portfolio is essential to unlock the most strategic opportunities and mitigate risks effectively.”

Laura Kayrouz, Senior Partner & Global Co-Head of Investments at Alpha AWM, Alpha FMC

Still, data challenges continue to stem from consolidation across the industry. For instance, an asset manager pursuing inorganic growth through acquisitions needs a tech platform that can adapt and help connect the dots across their multi-asset portfolio(s)—while maintaining operational efficiency. They need quick, reliable answers to questions like: What is the exposure to
certain regions or sectors? What macroeconomic shifts
may be creating new risk? What should the credit allocation
be at any given moment?

68%

of professional investors agree that having a single view across public and private holdings is crucial to managing investments.^*

*Source: Reuters/Aladdin Brand Image Survey 2024

Yes, they need tech for front-office capabilities, to align those capabilities with risk and compliance, and ultimately, for all the data therein to be organized and housed in a single investment book of record. But they also need tech for change _________ (insert the modifier du jour: change management; change among stakeholders and clients; change of all types). To be transformational for future growth and diversification.This is especially crucial as institutional investors diversify their portfolios and balance exposures across different regions as risks shift. While the United States has been the dominant market in terms of market capitalization, global trends may also change over the next two to three years. Emerging markets like India are seeing increased interest. And in the European markets, more organizations are seeking to offer integrated wealth and asset management services. To tap into new markets and unlock new value, firms need a holistic view of their investments, with comprehensive analytics that empower them to navigate regional and regulatory intricacies. This is particularly relevant in regions where regulatory requirements are stringent, and the need for transparency, from both clients and regulators, is high. A nascent, but prominent, ingredient to all of this: the role of AI in investing. The structured, accessible, and prevalent nature of public markets data makes it an ideal candidate for AI-driven analysis that promotes more informed decision making. AI can (when incorporated pragmatically and responsibly) enhance the investment process by providing deeper insights, improving risk assessment, and helping optimize portfolio construction. As AI continues to evolve—through a proliferation of copilots, agentic platforms, and more—integration into public markets technology has the potential to become more pronounced, driving further innovation and efficiency.

Regardless, over the last few decades, public markets have transformed significantly—with much more change on the horizon. Institutional investors that leverage technology to unify their public and private investments on one platform will be well-positioned for the next stage in the broader evolution of capital markets—and the continued expansion, access, and opportunities it will bring.

INNOVATIONS

Evolving the whole portfolio
In combination with eFront, Aladdin unifies public and private assets on a single platform—giving allocators the ability to seamlessly manage holdings across markets, optimize and scale operations firm-wide, all while benefiting from a unique user-provider model. The solution delivers enhanced data analytics, portfolio construction, and risk management across the investment lifecycle—further streamlining client operations and helping drive both established and emerging growth strategies—with a single IBOR for publics, privates, and digital assets.

Manage evolving risks
Customizable market-driven scenarios—designed with the full force of BlackRock’s collective intelligence—are compatible within analytic frameworks across asset classes and can gauge portfolio performance under tail event environments.

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