Empower, the second-largest 401(k) provider in the U.S., has partnered with seven firms—including Apollo Global Management and Partners Group—to bring private credit, equity, and real estate into its retirement platform. The investments will be available through select managed accounts tailored to age and risk tolerance. This marks the largest platform yet to facilitate direct exposure to private markets within defined contribution plans and reflects broader institutional momentum toward expanding access to alternative assets.
While the potential scale is significant—the 401(k) market totals $12.4 trillion—employer adoption remains cautious, given concerns about fee levels, liquidity, and legal risk. Empower’s private market offerings will carry annual fees between 1% and 1.6%, well above typical target-date funds. Still, five employers have already signed on. As regulatory clarity evolves, particularly under a potential second Trump administration, PE and private credit firms will be closely watching how this channel scales.
“We believe there are tremendous opportunities for retirement investors in private investing.” — Ed Murphy, CEO of Empower
Read more:
401(k) Giant to Allow Private Markets Investments in Its Retirement Portfolios
SOURCES
The Wall Street Journal, May 2025 - 401(k) Giant to Allow Private Markets Investments in Its Retirement Portfolios
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