Rules have funneled unprecedented US retirement cash into private assets, raising new risks, Bloomberg Intelligence says https://t.co/eF6AV07hBk ...

Company Overview & Strategy - Atomic partners with companies and institutions to offer diverse investing products to their clients, rather than operating as a direct-to-consumer application [1] - Atomic aims to work with retirement plan providers and record keepers to act as the custodian for private market investments within retirement plans [2] - The company's strategy involves enabling access to potentially risky and illiquid private market products within the safety of retirement accounts [2] - Atomic is expanding its mandate to serve traditional financial institutions and companies in different regions globally [12] Market Trends & Opportunities - There's growing demand for private market investments in retirement plans, with a study indicating that 45% of surveyed investors would like to add private assets to their retirement plans [5] - Private credit is gaining traction, but accessibility for mass retail investors remains limited due to accreditation requirements and platform availability [8][9] - Tokenization advancements are potentially increasing liquidity in private market investments, addressing a key concern [4] Financial Performance & Funding - Atomic closed a $30 million funding round with participation from venture capital firms and institutions like Nationwide, Erie Insurance, Intuit, Aquiline, and Brewer Lane [10] - The company has experienced significant growth, with a 52-fold increase in the number of investing accounts served [11] - Atomic has tripled its revenue and now trades $20 billion on an annualized basis [11] Investment Allocation - Practitioners are considering allocating a small slice, around 5% to 10%, of target date funds to private market investments within retirement plans [4]

Alternative Investments in 401k Plans - The executive order aims to facilitate access to alternative investments like real estate, cryptocurrency, or private assets within 401k plans [1] - Private assets refer to privately held companies, which constitute the majority of businesses in America [1][2] Financial Planning Considerations - Individuals should assess their current 401k plan, contribution levels, and company matching contributions before considering alternative investments [2][3] - It's crucial to understand financial goals, desired retirement age, and estimated retirement income needs [3] - Ideally, retirement contributions should range from 15% to 20% of gross pay [4] - Maximizing company matching contributions is essential as it represents "free money" [4] Prudent Investment Approach - Before exploring alternative investments, ensure a thorough understanding of the existing 401k plan's contents and contribution strategy [4] - Verify whether the current plan adequately supports the achievement of long-term financial goals [4]

Financial Data and Key Metrics Changes - Record Fee Related Earnings (FRE) of $627 million, a 22% year-over-year increase [7] - Management fee growth of 21% year-over-year [7] - Record Asset Under Management (AUM) of $840 billion, a 22% year-over-year increase [54] - Strong inflows of $61 billion across the firm, with record organic inflows of $49 billion [48] Business Line Data and Key Metrics Changes - Asset Management: AUM increased by 22% year-over-year to $840 billion, with fee-generating AUM growing 22% to $638 billion [54] - Retirement Services: $21 billion of inflows in Q2, the second highest on record [57] - Credit business: Core opportunistic credit returned 9% over the latest twelve months, with a 23% quarter-over-quarter increase [10] Market Data and Key Metrics Changes - Strong demand for retirement services products driven by demographic trends [15] - Inflows from Athene reached $21 billion, the second highest result on record [51] - Significant origination activity in Europe, with a focus on infrastructure investments [43] Company Strategy and Development Direction - Focus on origination and maintaining high-quality spread in a competitive environment [18][19] - Expansion into the UK market through strategic partnerships and acquisitions [24][79] - Emphasis on innovation in product offerings to meet evolving market demands [34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's health and growth potential despite current market challenges [64][67] - Anticipation of continued strong performance in the Retirement Services segment due to favorable demographic trends [15][57] - Expectation of significant opportunities in private credit and infrastructure financing [45][46] Other Important Information - The company is on track to achieve higher margins over time as it scales its operations [57] - The acquisition of Bridge Investment Group is expected to close in early September, with modest FRE contributions anticipated for 2025 [59] Q&A Session Summary Question: Credit spread dynamics and impact on insurance business - Management noted that while credit spreads have tightened, they are originating new business at historical rates of return, maintaining profitability [63][64] Question: Potential FRE impacts from Athora PIC acquisition - Management expects the transaction to be accretive to Athora's valuation and FRE over time, creating a significant origination ecosystem in the UK market [74][76] Question: Scalability of ABC following ADS success - Management indicated strong early approvals for ABC and believes it can follow the success of ADS, leveraging their first-mover advantage [82][84] Question: Drivers of recent origination and deployment growth - Management highlighted the power of their integrated origination platform and the ability to provide diverse financing solutions as key drivers of growth [86][90] Question: Outlook for inflows in Retirement Services - Management emphasized the development of stable value products as a growth area for Athene's business [94][96]

Partnerships & Market Access - Blackstone is partnering with Wellington and Vanguard to expand access to private assets for retail investors [1] - The initiative aims to bring private assets to Main Street investors [1] Regulatory & Economic Context - The Trump administration is supporting the move to broaden investment opportunities [1] Risk Considerations - Investors should be aware of the risks associated with investing in private assets [1]

The biggest direct lenders have been laying the groundwork to spur more private assets into retirement funds for quite some time https://t.co/sFtPzdTtnN ...

Blackstone is partnering with Wellington and Vanguard to bring private assets to the masses. The Trump administration is getting on board and Main Street investors could benefit, so long as they know the risks. (Photo: Michael Prince for Forbes) https://t.co/ly0RWRs01Z https://t.co/943VbhdHrN ...

Investment Strategy - Including private assets in 401(k) plans could potentially increase returns [1] - Incorporating private assets also introduces higher risk [1]

An industry group that advocates for putting private assets in 401(k)s called for plan administrators to evaluate such investments with the same standards used for traditional ones like stocks and bonds https://t.co/HxB0OFYJRE ...

Core Insights - BlackRock, Inc. (BLK) is expanding private market investments into retirement plans, indicating a shift in retirement product structuring [1] - Great Gray Trust Company has selected BlackRock to provide a custom glidepath for its first target date retirement solution, which includes private equity and private credit [1][9] Group 1: BlackRock's Strategy and Offerings - BlackRock aims to modernize traditional target date solutions by incorporating private market exposures, which have historically been limited to institutional investors [3] - The firm plans to allocate 5-20% of retirement plans to private assets based on the investor's age, potentially increasing annual returns by 50 basis points [5][9] - BlackRock has committed nearly $28 billion to acquiring private asset firms over the past year, including significant acquisitions like Global Infrastructure Partners for $12.5 billion [10] Group 2: Market Demand and Growth Projections - There is a rising demand for private assets, which are becoming crucial for economic growth and returns for institutional and high-net-worth investors [4] - BlackRock predicts the private credit market could grow to $4.5 trillion by 2030, with a target of raising $400 billion in private markets by the same year [8] - The integration of private equity and credit investments into pre-built portfolios is part of BlackRock's strategy to enhance its offerings in the private asset space [6] Group 3: Competitive Landscape - Other financial institutions, such as JPMorgan and Citigroup, are also expanding their presence in the private credit market, indicating a competitive environment [15][17] - JPMorgan announced a $50 billion allocation for direct lending, while Citigroup partnered with Apollo for a $25 billion private credit program [15][17]