BlackRock announced a collaboration with impact investing specialist Phenix Capital Group’s advisory arm PCG Impact, on a new offering aimed at helping institutional investors to build and manage impact portfolios that seek to generate sustainable outcomes alongside financial returns.

According to BlackRock, the new offering comes as client demand for impact investing continues to grow, with many institutional investors seeking impact investments with measurable sustainability-related outcomes, credible reporting and the same governance and performance standards they apply to the rest of their portfolio as the market matures.

Sarju Mehta, Head of Investment Solutions, EMEA, Multi-Asset Strategies and Solutions at BlackRock, said:

“A growing number of investors, particularly in Europe, want to pursue impact objectives alongside long-term financial returns. Translating those ambitions into portfolios can be complex, requiring specialist expertise, robust reporting and a portfolio approach that clearly reflects their objectives. Through our collaboration with PCG Impact, we are helping interested clients access a broader universe of impact opportunities and build portfolios that are designed around their objectives.”

Under the new collaboration the firms said that BlackRock will contribute its expertise in portfolio construction, implementation, risk management and oversight capabilities, while PCG Impact will provide specialist research on more than 3,000 impact fund managers globally, alongside its advisory and reporting expertise.

The new offering will provide a single, integrated framework supported by BlackRock’s proprietary risk platform, Aladdin, enabling investors to access a broader universe of impact opportunities while benefiting from end-to-end portfolio design, implementation, monitoring and robust reporting. Key features enabled by the collaboration include helping clients to define impact objectives and investment parameters, identify suitable strategies across asset classes, and embed reporting within existing governance frameworks.

The offering is available to institutional investors, including pension funds, family offices, endowments and foundations, through both Outsourced Chief Investment Officer (‘OCIO’) portfolios and custom impact mandates, the companies said.

Dirk Meuleman, CEO of PCG Impact, said:

“PCG Impact complements BlackRock’s existing impact capabilities with specialist market intelligence, manager research and reporting capabilities. Combined with BlackRock’s global client reach and investment expertise, this creates a compelling model for institutional investors seeking access to a broader universe of impact opportunities and the expertise needed to assess and monitor them. PCG Impact was founded to make institutional impact investing work at scale and this is exactly what this new offering will do.”