The world largest private asset manager Blackstone, is launching a new business unit focused on the DC pension sector.
This new DC department will sit within its private wealth division and focus on broadening access to private markets for retirement savers, initially in the US 401k market.
Blackstone says this move is to capitalise on the “significant opportunities” that exist in this sector, adding it is seeing demand from DC pension schemes globally for private assets in a bid to diversify portfolios and boost longer-term retirement outcomes.
It adds that it will seek to develop these opportunities through strategic partnerships, product innovation and investor education.
Blackstone was the first major alternatives asset manager to build a dedicated private wealth team, and now manages almost $280bn of assets through this channel, covering ‘scale’ strategies in private equity, real estate, private credit and private infrastructure.
This move follows a recent executive order, signed by President Trump, to broaden the assets classes used in retirement plans. The Democratizing Access to Alternative Assets for 401(k) Investors aims to lower regulatory barriers and litigation risks to DC plans offering alternative investments, which include private markets as well as crypto, commodities and lifetime income products.
This shift comes as organisations such as DCALTA, the US-based DC Alternative Association, have been campaigning to promote greater use of alternative assets within pension portfolios.
The UK is also looking to extend the range of assets included with DC portfolios through the Mansion House Compact and Accord, the later of which will see major DC workplace schemes invest at least 10 per cent of their default funds in private assets, with half of this in the UK.
To run this new unit, Blackstone has appointed Heather von Zuben as its global head of retirement solutions, with Tom Nides serving as chairman, and Paul Quinlan taking on the role of head of US.
Blackstone’s president and chief operating officer Jon Gray says: “For decades, the world’s biggest and most sophisticated institutional investors benefitted from the strong returns and diversification of investing in private markets. Blackstone is well positioned to be the partner of choice for retirement solution providers given our brand, track record and broad slate of perpetual products.”
Tom Nides, who also serves as vice chairman for strategy and client relations, adds: “Blackstone has been a pioneer in bringing private markets investing to individuals. Today we are cementing that status with the industry’s first dedicated Defined Contribution Unit.”
Von Zuben joined Blackstone in 2022 from Goldman Sachs, where she was global head of wealth management alternatives. Nides joined in 2024 after serving as US Ambassador to Israel, while Quinlan previously served as global CFO of Blackstone Real Estate.
