Empower, a leading provider of retirement and wealth management solutions, revealed on Wednesday that Blackstone Inc (NYSE:BX) has joined its private market investment partnership program. This strategic alliance aims to expand access to alternative investment strategies for millions of individuals saving for retirement.
The program enables defined contribution plans to incorporate exposure to private equity, private credit, infrastructure, and real estate assets through collective investment trust (CIT) structures. Empower has been advocating for broader adoption of these investment options within retirement plans as institutional investors increasingly diversify beyond conventional equity and fixed-income portfolios.
Edmund F. Murphy III, president and CEO of Empower, articulated the company's objective: "Our goal is to bring the power of private market investing - delivered through advice and risk-appropriate structures - to millions of Americans who previously lacked access." He emphasized that the initiative is designed to provide retirement savers with new opportunities while aligning with their risk profiles.
Blackstone’s Engagement and Strategic Focus
Blackstone stands as the largest alternative asset manager worldwide, overseeing assets exceeding $1.2 trillion. The firm maintains a specialized business segment dedicated to retirement solutions, reflecting its commitment to integrating private market opportunities within workplace savings plans.
Jon Gray, Blackstone's President and Chief Operating Officer, commented on the partnership: "Collaborating with Empower reflects our conviction that private markets can be instrumental in helping more Americans prepare for their financial future and achieve long-term security. By introducing Blackstone's premier investment strategies into defined contribution plans, we enable retirement savers to access opportunities historically reserved for institutional investors."
Heather von Zuben, Blackstone’s global head of retirement solutions, further highlighted the importance of expanding private market access: "Making private markets available to a broader range of individual investors represents a meaningful advancement in how Americans can benefit from enhanced returns and portfolio diversification as they build wealth for the future."
Program Structure and Participant Experience
Under Empower's framework, employers can offer private market CITs within their employee retirement plan investment menus, contingent on collaborating with an advisor who delivers the solution via an advice-based managed account platform. This platform customizes portfolio allocations according to each participant's risk tolerance, investment horizon, and specific long-term financial objectives.
The structure is deliberately engineered to provide the diversification and potential long-term return benefits associated with private market investments while implementing liquidity management and fee-efficiency mechanisms appropriate for defined contribution plan settings.
Currently, Empower administers nearly $2 trillion in assets, serving over 19 million investors through its retirement plans, advisory services, wealth management, and investment offerings.
Blackstone's suite of institutional-caliber opportunities spans private equity, real estate, private credit, and infrastructure. The firm has pioneered providing private market solutions to individual investors since 2002, underscoring extensive experience in this domain.
Conclusion
The partnership between Empower and Blackstone reflects a growing trend in retirement investing - incorporating alternative assets to enhance diversification and return potential. Through thoughtful structuring and advisory support, this initiative seeks to open new avenues to private markets for millions of retirement savers who traditionally had limited access to these investment categories.