Empower to offer private market investments in retirement plans
US pension giant Empower has announced it will offer an option to invest in private markets in its retirement plans.
The country’s second-largest workplace pension provider said it will get 401(k) plan providers and savers to invest in private equity, private credit and private real estate.
Read more: Pension firms pledge to invest 10pc in private markets by 2030
It has partnered with a number of private investments fund managers including Apollo, Franklin Templeton, Goldman Sachs and Partners Group, which will offer private investments through collective investment trusts to provide liquidity protection and reduce fee exposure.
The investments will only be offered through managed accounts rather than the general 401(k) investment options.
Read more: Private credit market set for significant growth in 2025
It comes amid growing demand from investors for exposure to private markets, with private credit set for ‘significant growth’ this year, according to Macquarie Capital.
It also follows a recent announcement in the UK that 17 of the biggest workplace pension providers have pledged to invest at least 10 per cent into private markets by 2030.
Read more: UK finance industry divided over private markets investment pledge
“We work with 19 million Americans investing for retirement through the workplace retirement system who should have the opportunity to make investments that are outside of public markets,” Empower’s president and chief executive Edmund F. Murphy III said in a statement.
“This move is designed to provide more robust retirement options for those who want to take a new approach to their retirement savings.”
