Private Asset Firms Collaborating with 401(k) Managers

Private asset firms are partnering with 401(k) managers to offer retirement savings options to their clients. This trend is driven by the increasing demand for retirement savings solutions and the need for asset managers to diversify their offerings. The partnerships allow asset firms to tap into the 401(k) market, which is expected to grow significantly in the coming years.

Private asset firms, including KKR & Co., Blackstone Inc., and Blue Owl Capital Inc., are partnering with 401(k) managers to offer retirement savings options to their clients. This trend is driven by the increasing demand for retirement savings solutions and the need for asset managers to diversify their offerings. The partnerships allow asset firms to tap into the 401(k) market, which is expected to grow significantly in the coming years.

In recent months, several private asset managers have formed strategic alliances with 401(k) providers. Blackstone, Wellington Management Group, and Vanguard Group Inc. announced their partnerships in April, followed by agreements between KKR and Capital Group Cos., Blackrock Inc. and Great Gray Trust Co., and Blue Owl and Voya Financial Inc. in July 2025. These partnerships aim to bring private equity, credit, and real estate investments into the retirement plans of ordinary investors.

The push for private assets in 401(k) plans is part of a broader effort to expand access to high-performing asset classes traditionally reserved for institutional investors. As fundraising from institutional investors has declined, private market money managers are looking to tap into the $12 trillion 401(k) market. Industry executives argue that private credit offers attractive risk-adjusted returns compared to public equities, making it a suitable addition to retirement portfolios.

However, critics like Corey Frayer, director of investor protection at the Consumer Federation of America, caution that the risks associated with private assets may be too great for the average investor. Frayer compares the potential inclusion of private assets in 401(k) plans to offering uninspected beef, highlighting the lack of regulatory oversight and the complexity of these investments.

Despite these concerns, President Trump's expected executive order could pave the way for private equity investments in 401(k) plans. The order would provide guidance to employers and plan administrators on including private assets and offer legal cover to prevent employee lawsuits over fees or losses. The directive is expected to prod the Department of Labor and the Securities and Exchange Commission to clarify the suitability of private equity investments for regular retirement savers.

If all goes as expected, Trump's executive order and the ensuing regulatory actions will represent the latest chapter in the expansion of private assets into Main Street portfolios. Pension funds, exchange-traded funds, interval funds, and publicly traded business development companies already offer exposure to private assets. The partnerships between private asset firms and 401(k) providers aim to make these investments more accessible to ordinary investors, potentially diversifying their retirement portfolios and enhancing their long-term returns.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-24/private-credit-firms-from-kkr-to-blackstone-ready-for-401-k-win
[2] https://www.benefitspro.com/2025/07/24/private-market-investments-in-401k-plans-lets-weigh-the-risks/