Euroclear, the Brussels-based securities custodian and settlement giant, has taken a significant step forward in the private markets space by securing a partnership with Blackrock, the world’s largest asset manager.
The deal, clinched last week, brings Blackrock’s private market funds to Euroclear’s FundsPlace platform, further cementing the company’s push into unlisted assets, including private equity.
With an impressive 39,600 billion in assets under custody, Euroclear is a key player in international securities trading, and this latest move aligns with its strategic focus on private markets. For several years, the company—whose core shareholders include the Belgian state, Euronext Brussels, and the London Stock Exchange—has prioritised growth in this sector, spurred by rising global demand for unlisted investments.
Jorgen Muylaert, Euroclear’s spokesperson, notes: “More and more investors are looking to diversify their portfolios with private market investments, particularly in private equity. The search for yield in a low-interest environment is undoubtedly driving this trend.”
Strategic integration
Euroclear’s recent acquisition of Goji, a UK-based platform specialising in private markets, was a key precursor to the Blackrock deal. Now, with Blackrock bringing 167 billion dollars in private market assets under management to FundsPlace, Euroclear can offer institutional investors access to private equity, private debt, real estate, and infrastructure funds in a standardised format.
The platform already supports 2,500 banks and institutional investors globally, but the BlackRock partnership signals a new level of scale and ambition. Muylaert describes the agreement as a “pioneering project” for both parties, highlighting the unprecedented scope of this collaboration.
Step towards democratisation
The partnership also represents a broader shift towards the democratisation of private market funds. Initially targeting wealthy clients, there is growing ambition to open these investment opportunities to the retail market. BlackRock and Euroclear are keen to make private markets more accessible, with Eltif 2.0 (European Long-Term Investment Fund) serving as a potential vehicle for this expansion. Eltif, revamped last year to promote long-term investments in unlisted equities and infrastructure, is expected to play a central role in future offerings.
FundsPlace already hosts other Eltif products, but BlackRock’s entry could be a game-changer. Meanwhile, competition is heating up, with Germany’s Moonfare also providing a platform for direct investor access.
Bridging private and traditional markets
This move is part of a larger trend towards closer integration between private and traditional funds. Blackrock already uses Euroclear’s FundsPlace for mutual funds and ETFs, and adding private market funds creates a one-stop shop for institutional investors.
Amin Naj, founder of FundFront and an expert in alternative investments, notes that this deal marks a significant step towards bringing private markets to the masses. “Euroclear is standardising the settlement of private market funds in the same way as mutual funds, bridging the gap between the two asset classes.”
While the underlying assets may differ, Euroclear’s Muylaert agrees that accessibility and management are becoming increasingly aligned across private and traditional investments. This strategic evolution positions Euroclear as a leader in the growing convergence of investment opportunities across both private and public markets.