BlackRock plans to include private assets in retirement plans to expand alternative investments.

From Yahoo Finance: 2025-06-26 10:23:00

BlackRock, the world’s largest asset manager, will include private assets in retirement plans to expand into alternative investments. This shift brings traditionally illiquid and high-fee private market investments into mainstream retirement portfolios. The New York-based firm plans to offer target-date funds with allocations to private equity and credit in the first half of 2026.

Retirement money is crucial for BlackRock, comprising over half of the company’s managed funds. BlackRock will offer public and private market offerings for a new target-date retirement fund by Great Gray Trust, managing over $210 billion. The Wall Street Journal first reported BlackRock’s plan to include private assets in retirement plans.

BlackRock’s approach includes a 5% to 20% allocation to private assets in retirement plans, based on the investor’s age. While demand for private assets exposure has increased, concerns exist around liquidity, transparency, and litigation risks. BlackRock CFO Martin Small sees a pathway for private markets in target-date funds, with potential regulatory support.

Adding private markets exposure to target-date funds could potentially boost returns by 50 basis points annually. BlackRock envisions future portfolios comprising 50% public equities, 30% public fixed income, and 20% private markets. BlackRock anticipates a significant impact on returns with the inclusion of private assets in retirement plans.



Read more at Yahoo Finance: BlackRock looks to expand private markets to retirement plans