Exclusive: Blackstone is creating a business unit aimed at introducing private assets to 401(k) plans https://t.co/iBu4h7bxDQ ...

Market Trends & Predictions - Secondaries deal volume is predicted to more than double to $400 billion by 2030 [1] - Blackstone views buying and selling existing stakes of private assets as "the most underutilized tool" in the market [1]

Market Trends & Regulatory Landscape - The executive order signed last week aims to make it easier for 401(k)s to include alternative investments like private equity and crypto [1][15] - Regulatory clarity and direction from the SEC and DOL are crucial in the coming weeks and months [15][16] Investment Opportunities & Strategies - Defined benefit plans, pension funds, endowments, and foundations have been investing in private assets for 30 years with positive returns [4][5] - Empower has formed partnerships with several alternative managers to provide access to these strategies [6] - The approach is to allocate no more than 15% of assets to private assets, using a collective investment trust or target date type construct with a liquidity sleeve [10] - Defined contribution market could see an allocation to privates between 10% and 20% over the next 10 years, potentially becoming a $4-5 trillion market [14][15] Potential Risks & Considerations - There is a convergence happening between the public and private markets regarding valuations, potentially impacting performance [8] - Illiquidity of private investments raises concerns about accessibility for retirees needing immediate access to funds [8][9] - Fee structures for private alternatives are meaningfully higher than in the public space, and the true returns post-fees need consideration [13][14] Company Performance & Strategy - Empower has 19 million customers and $2 trillion on its platform [12] - Empower aims to provide access to private assets, with the fiduciary (plan sponsor, advisor, and investment consultant) determining timing and strategies [12][13]

Investment Opportunity - Opening 401ks to private assets aims to provide retirement savers with potentially higher returns and more investment options [2] - BlackRock estimates that adding private market assets could increase returns by approximately 50 basis points (0.5%) annually [2] - This could lead to a potential increase of 15% in 401k plan value over a 40-year period [2] Potential Risks and Concerns - Private equity's inclusion in retirement accounts may lead to increased costs for investors [3] - Private assets are generally less liquid compared to publicly traded stocks and bonds [3] - This illiquidity could make it more difficult for individuals to access their savings quickly before retirement [3] - Assessing and valuing private assets can be more challenging due to limited publicly available information [4] - Greater risk is involved due to the difficulty in assessing and valuing private assets [4]

Apollo Global Management Inc. CEO Marc Rowan said trading private assets has the potential to turn the industry “on its head” and said those who resist it are generally charging high fees that they don’t want revealed https://t.co/Mzotzy7cTb ...

Capital Group and KKR are accelerating their push to offer private assets to retail investors, unveiling plans for a fund that combines traditional US stocks with private equity https://t.co/4o1XIeXanq ...