Blackstone Inc. (BX) is partnering with Empower to open up private markets investing to ordinary retirement savers, the companies announced Wednesday. It's part of a broader push to give 401(k) participants access to the kinds of alternative investments that have historically been reserved for pension funds and the wealthy.
Here's how it works: Empower's program lets employers add private market exposure to their retirement plans through collective investment trust structures. Think private equity, private credit, infrastructure, and real estate—all wrapped up in a way that's designed to work within the constraints of workplace retirement accounts.
"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," said Edmund F. Murphy III, president and CEO of Empower.
Why Blackstone Is Making This Move
Blackstone isn't just testing the waters here. As the world's largest alternative asset manager with over $1.2 trillion in assets under management, the firm has built an entire business unit focused on retirement solutions. This partnership represents a significant bet on the democratization of private markets.
"Partnering with Empower reflects our shared belief that private markets can play an important role in helping more Americans plan for the future and build long-term financial security," said Jon Gray, Blackstone's President and COO. "Bringing Blackstone's leading investment strategies into defined contribution plans enables retirement savers to access the same opportunities previously only available to institutional investors."
Heather von Zuben, global head of retirement solutions for Blackstone, framed it as an evolution in how Americans build wealth. "Opening private markets to a broader universe of individual investors is an important evolution in how Americans can benefit from enhanced returns and diversification as they look to build wealth for the future."
The Mechanics of the Partnership
Empower's approach requires employers to work with an advisor to deliver these investments through managed accounts. That's an important detail—participants don't just get carte blanche access to throw their nest egg into illiquid assets. Instead, allocations are customized based on each person's risk tolerance, time horizon, and long-term financial objectives.
The program aims to deliver the benefits typically associated with private markets—diversification and potentially higher long-term returns—while managing the liquidity constraints and fee structures that make these investments tricky in a retirement context.
Empower oversees approximately $2 trillion in assets for more than 19 million investors across retirement plans, wealth management, and investment services. Meanwhile, Blackstone has been in the individual investor space since 2002, giving it a two-decade head start in figuring out how to translate institutional-grade private markets strategies for retail participants.
