From Yahoo Finance: 2025-03-27 18:45:00

The Vanguard Group is in talks with private equity giants Blackstone and Carlyle to offer private assets to investors, potentially expanding beyond its traditional low-cost mutual funds and ETFs. No final agreements have been reached, but the move raises questions about Vanguard’s reputation as an accessible investment partner.

The possibility of Vanguard offering private assets comes as a surprise to industry experts, with questions raised about the suitability of such investments for individual investors. This move follows the launch of the SPDR SSGA Apollo IG Public & Private Credit ETF earlier this year, which faced concerns from the SEC over liquidity risk management.

Currently, Vanguard offers private equity through a partnership with HarbourVest, managing $2.4 billion in assets. Analysts speculate that this expansion into private assets could disrupt traditional revenue streams and expose investors to new risks. The potential shift signals a significant departure from Vanguard’s established investment strategy.

Overall, the talks between Vanguard and private equity firms represent a potential shift in the investment landscape, with implications for both individual investors and the broader financial industry. As Vanguard considers expanding its offerings, the impact on investors and the market remains to be seen.

Read more: Vanguard Said to Eye Blackstone, Carlyle Pact to Offer Private Assets