Blackstone has created a dedicated unit to channel more retirement savings into private equity, private credit, real estate, and other alternative assets, targeting what it describes as a multi-trillion-dollar opportunity in the United States alone, according to sources cited by Reuters.

The initiative builds on momentum from an August executive order by US President Donald Trump directing regulators to make it easier for everyday savers to access private investments through widely used 401(k) plans. The new unit will sit within Blackstone’s private wealth division, which manages about $280bn, and will develop products and partnerships for defined contribution schemes.

Jon Gray, Blackstone’s president and chief operating officer, said private markets have long provided strong returns and diversification benefits to major institutional investors. He added that Blackstone aims to become “the partner of choice for retirement solution providers.”

Heather von Zuben will lead the new business, moving from her previous role overseeing open-ended credit funds. Former US ambassador Tom Nides will serve as chair, while Paul Quinlan, a former chief financial officer in Blackstone’s real estate business, will lead the unit’s US operations.

Private markets managers, including Apollo and Blue Owl Capital, have already begun forming partnerships to introduce blended public-private funds to retirement plans. According to the Investment Company Institute, Americans held $9.3tn across 401(k) plans as of June, making the segment one of the largest potential pools of fresh private capital.

Blackstone said the new platform will focus on expanding access for savers while working with providers to structure products that meet regulatory and fiduciary requirements.

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