Blackstone targets retirement funds for private markets
Blackstone has launched a new unit to channel retirement savings into private market investments, tapping a potential multi-trillion-dollar opportunity in the United States alone, the company said Wednesday.
The move follows a U.S. executive order signed in August that aims to make it easier for everyday savers to invest in alternative assets through popular 401(k) plans. Alternative assets include private equity, private credit, cryptocurrency, and real estate, News.Az reports, citing Reuters.
The new unit will form partnerships and create products for defined contribution plans, which are funded by employees and employers but do not guarantee returns. It will be part of Blackstone’s private wealth business, which manages about $280 billion in assets.
Blackstone president Jon Gray said the firm aims to be “the partner of choice for retirement solution providers,” giving more people access to potentially higher returns in private markets. Critics warn these investments carry higher risk and fees compared to traditional public securities.
Heather von Zuben will lead the unit, with Tom Nides as chair and Paul Quinlan heading the U.S. operations. Private markets firms like Apollo and Blue Owl Capital have also begun offering similar products.
As of June 30, Americans held $9.3 trillion in 401(k) plans, highlighting the size of the market Blackstone seeks to serve.
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