A Historic Shift: BlackRock Proposes an Alternative to the 60/40 Portfolio

The traditional 60/40 investment portfolio structure—comprising 60% stocks and 40% bonds—is becoming less relevant amid inflation, supply shocks, and debt market volatility, Fabio Osta, BlackRock’s head of alternative investments for EMEA, told CNBC. Instead, he recommends that high-net-worth clients allocate their assets in a 50/30/20 ratio—allocating 20% to private markets. Interest in these markets has been significantly fueled by the development of AI infrastructure, and BlackRock views this as a “once-in-a-lifetime” investment shift. At the same time, Osta advises keeping half of the portfolio in stocks and allocating 30% to bonds.

Private markets involve investments in companies that are not traded on public exchanges—for example, through venture capital funds, private equity funds, or the purchase of shares at the pre-IPO stage. According to the investment firm’s forecasts, the global volume of alternative assets under management will grow from $20 trillion to $30 trillion by 2030. Osta noted that these assets are becoming “more accessible, more sophisticated, and more transparent,” and that investors are showing “enormous appetite.”

"We are entering a new era of integration between public [and] private markets. This marks the beginning of a new era of growth for private markets," he said.

As a “prime example” of investment opportunities at the intersection of AI and private markets, Osta cited the recent €3 billion funding round for the startup Mistral, in which BlackRock participated.

According to the top executive, AI has evolved from a niche topic into a major trend affecting entire regions, sectors, and asset classes. Among other “megatrends” shaping the private investment market, Osta highlighted the energy transition, demographic changes, and urbanization.

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