Principal Financial Group has expanded its US retirement plan business to include private markets, as alternative investments make their way into 401(k) plans.

The retirement and insurance provider said it plans to collaborate with asset managers including Blackstone, Ares, KKR and Partners Group, as well as trust companies and fiduciaries, to launch a suite of collective investment trusts (CITs) for US retirement plans combining public and private strategies.

The move comes a year after President Donald Trump issued an executive order opening the door to alternative investments in 401(k) retirement accounts. Since then, managers have established defined contribution teams, formed partnerships and launched new funds to give retirees access to alternatives through their plans.

“Private markets are becoming an increasingly important part of the retirement conversation, but they require the right structure, oversight and operational discipline,” said Brett Fisher, assistant vice president, investment product strategy at Principal Financial Group.

Through the expansion of Principal’s Featured Partner Programme to support private market strategies within retirement plans, investment managers can use the firm’s products and recordkeeping capabilities to support CIT-based target-date and target-risk funds.

The programme will only support exposure to alternatives as a component within professionally designed and managed investment products, the firm said.

Current private market managers participating in the expanded programme include AllianceBernstein, Apollo, Ares, Blackstone, Blue Owl, Carlyle, Franklin Templeton, Goldman Sachs, KKR, Morgan Stanley Investment Management, Neuberger, Partners Group, PGIM and Principal Asset Management, Principal said.

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