Luxembourg-headquartered group Quintet Private Bank has signed a memorandum of understanding (MoU) with asset management giant BlackRock.
The contractual terms between Quintet and BlackRock remain subject to final agreement, expected in the third quarter of this year. The terms of the agreement will not be disclosed.
The partnership will extend the investment capabilities of the Quintet Group, including its UK subsidiary Brown Shipley.
Under the terms of the MoU, BlackRock will provide the private banking group with access to an expanded set of investment tools, products and solutions. In the UK, Brown Shipley will draw upon a range of funds, launched exclusively for the Quintet Group’s clients, leveraging BlackRock’s scale.
It will also have access to Aladdin, BlackRock’s proprietary risk-management technology platform, which will be deployed to support risk management and reporting of Brown Shipley’s funds and discretionary solutions.
BlackRock will also provide advice on Quintet’s asset-allocation strategy, reflecting the investment objectives designed by the firm to meet the needs of its clients, including in the UK.
While retaining its open-architecture approach, Quintet will have access to an extended product range via BlackRock, benefiting from its support in the selection and monitoring of third-party managers.
Chris Allen, Quintet Group chief executive, said: “We are delighted to announce our intent to partner with BlackRock. We selected BlackRock because of the depth and quality of their investment expertise, the scale of their investment reach and the strength of their risk-management platform. All of that will facilitate the work of our investment specialists, complementing and enhancing our client proposition.
“Our decision to partner with BlackRock will support our ability to remain on the front foot of product and portfolio innovation,” he said. “That, in turn, will help us serve our clients even better – with increased reach, efficiency and flexibility – as we continually strive to deliver robust client outcomes.
“As today’s announcement demonstrates, we are focused on strengthening the foundation of our group to support sustained growth. That includes through our broader strategy refresh – a series of measures we will continue to implement consistently over the course of this year and 2024 – designed to create additional economies of scale, reduce organisational complexity and further enhance collaboration in service to our clients.
“Extending our investment capabilities, with BlackRock’s expertise, will prove a key driver of our journey to sustained profitability and long-term growth, as we seek to become an even more efficient firm, where client interests are at the heart of everything we do.”