The invention provides in one aspect a process for preparing a microgel by RAFT polymerizing in the presence of a RAFT chain transfer agent, one or more solvophobic monomers and one or more solvophilic monomers to form one or more block copolymers comprising one or more solvophobic blocks and one or more solvophilic blocks wherein the solvophobic block is insoluble in a dispersing medium and the solvophilic block is soluble in the dispersing medium. The block copolymer is dispersed in the dispersing medium to form micelles, which is then stabilized to form the microgel. The dispersing medium can be aqueous or lipophilic. The method of the present invention also permits one to encapsulate a wide variety of materials, such as pigments, dye molecules, and aluminum flakes used in metallized paints.