Dubai's largest bank, Emirates NBD, which is government-owned, has recently announced a memorandum of understanding with BlackRock Inc., the world's largest asset management firm. Together, they will launch a private market investment platform for high-net-worth clients in the Middle East. This collaboration aims to allow these clients to participate in alternative asset investments that were previously mainly accessible to institutional investors.
According to the press release, the two companies will jointly launch private market investment products for high-net-worth clients, based on BlackRock's alternative investment platform. The first products will focus on income-generating and growth strategies and will be available to Emirates NBD's wealth clients. These products will have an "evergreen" structure, providing more flexibility compared to traditional closed-end funds and suitable for individual investors seeking long-term investment opportunities.
In recent years, the private market has become a focus in the global asset management industry, covering various asset classes such as private credit, private equity funds, real estate, and infrastructure. Although the liquidity of the private market is lower, it is usually considered to have higher return potential compared to public market products. It is predicted that by 2030, the global scale of alternative asset management will reach $30 trillion.
In this collaboration, BlackRock will use an open architecture approach to provide Emirates NBD with comprehensive services including marketing, investor education, product training, and technical support, helping the bank expand its product offerings in the private market.
BlackRock and Emirates NBD state that the long-term goal of the new platform is to promote "flexible access" to the private market, enabling more investors in the Middle East to participate in alternative investments across all major asset classes. They expect this platform to attract a significant allocation of wealth, especially in the next five years, as the private market is anticipated to draw increased attention from investors.
BlackRock's current alternative investment platform manages assets exceeding $450 billion, covering over 50 countries and employing more than 1,000 people.
