Alternatives giants Blackstone, Apollo and Ares partner with OneDigital to offer private markets to 401(k) plan sponsors.
OneDigital has announced the introduction of alternative investments into its personalised portfolio programme for 401(k) plan sponsors, incorporating private equity, private credit and opportunistic investment strategies.
The private markets strategies will be implemented through relationships with Apollo, Ares and Blackstone, the retirement solutions provider and adviser said.
The move comes as alternative managers have been seeking access to 401(k) retirement accounts, after President Donald Trump signed an executive order allowing private markets investments to be included in the plans.
“For decades, private markets have helped institutions achieve potential enhanced returns, greater diversification, and reduced volatility,” said Heather von Zuben, global head of retirement solutions at Blackstone. “We’re proud to work with OneDigital to expand access for retirement savers through a framework that prioritises participant outcomes.”
Read more: Inside the new architecture for private credit in 401(k)s
Overall, OneDigital said the move will give 401(k) plans greater diversification while maintaining liquidity discipline and fiduciary governance.
“We believe retirement plan participants should have access to private market asset classes, which have the potential to drive growth, generate income, and provide long-term stability,” said Raj Dhanda, global head of wealth management at Ares.
OneDigital stated that collective investment trusts incorporating private investments are expected to be available to eligible plan sponsors this quarter.
“Private investments have played an important role in driving outcomes for institutions and sophisticated investors for decades,” said Vince Morris, president, OneDigital financial service. “By thoughtfully bringing these strategies into the workplace through our personalised portfolios programme, we’re expanding access in a structured, fiduciary-aligned way with the aim of improved retirement outcomes over time.”
Just last week, Blackstone partnered with US retirement plan administrator Empower as another way to gain access to 401(k) pension plans.
