BlackRock is set to bring private markets into mainstream retirement investing with the launch of a new target-date fund that will include allocations to private equity and private credit.

The fund is expected to debut in the first half of 2026.

In partnership with Great Gray Trust, an institutional retirement plan provider managing over $210bn, BlackRock’s new offering represents a major step in reshaping retirement portfolios, traditionally dominated by public equities and bonds.

The new target-date strategy will feature a 5% to 20% allocation to private market assets depending on the age of the investor. BlackRock estimates that this could boost annual returns by up to 50 basis points, while aligning with its long-term portfolio model of 50% public equities, 30% fixed income, and 20% private markets.

This move underscores BlackRock’s increasing focus on alternative assets and its ambition to expand access to private markets, even amid cautious sentiment from some plan sponsors around liquidity, transparency, and litigation risk.

Speaking earlier this month, BlackRock CFO Martin Small said there is a “real pathway” for private markets to enter target-date funds, although regulatory support will be essential to scale adoption.

This development reflects a growing trend in asset management where institutional-grade private assets are gradually being made available to a wider investor base, including defined contribution retirement plans.

Source: Reuters

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