BlackRock Taps JPMorgan Executive Jessica Bulen for Family Office Business
Introduction
BlackRock has appointed Jessica Bulen, a former JPMorgan Chase executive, to lead its expanding family office business. Bulen will take on the role of head of family capital, endowments, foundations, and healthcare in the Americas institutional business starting in July, as announced in a memo to employees on Monday. With over two decades of experience at JPMorgan, Bulen brings a wealth of expertise in advising ultrahigh net worth families and institutions across public and private markets.
Progress and Growth
The move to hire Bulen is part of BlackRock’s strategy to enhance its services for family offices, which typically manage assets of $500 million or more and are increasingly operating as institutional-level investors. Armando Senra, head of BlackRock’s Americas institutional business, highlighted the demand for more private markets investments, complex tax strategies, and risk analytics among these clients. Senra noted that within the institutional framework, family offices represent the fastest-growing segment in the industry, and BlackRock aims to capitalize on this growth.
According to Senra, BlackRock has traditionally been known for managing stocks, bonds, index funds, and ETFs, but in recent years, the firm has made significant investments to meet the rising interest in alternative assets. The firm’s Americas Institutional Business managed $16 billion in family capital by the end of 2022. Through acquisitions like HPS Investment Partners and Global Infrastructure Partners, as well as specialized tax and customized index investment businesses, BlackRock has broadened its offerings to cater to the evolving needs of family offices.
Expansion into Alternative Investments
BlackRock has observed a trend among family offices diversifying their holdings into private credit and infrastructure, in addition to traditional investments in private equity strategies and hedge funds. A survey released by BlackRock last year revealed that alternative investments accounted for 42% of family office portfolios and were expected to increase.
Senra emphasized the importance of having a diverse range of investment options to attract clients, stating, “You needed additional Lego pieces to be able to really put in front of these client segments a value proposition that is attractive.” With the acquisitions and expansions in its portfolio, BlackRock now boasts the scale and capabilities to meet the needs of family offices seeking innovative investment solutions.
Conclusion
As BlackRock continues to bolster its presence in the family office business, the appointment of Jessica Bulen signals a strategic move to enhance its offerings for ultrahigh net worth families and institutions. By focusing on alternative investments, private markets, and tailored solutions, BlackRock aims to position itself as a leading provider in the industry.
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