Vanguard held early-stage discussions with private equity heavyweights Blackstone and Carlyle as it considers expanding access to private market strategies for individual investors.

While no formal partnerships have been agreed, the talks reflect Vanguard’s strategic intent to broaden its reach into private equity and private credit—asset classes historically reserved for institutions and ultra-wealthy investors.
The world’s second-largest asset manager already offers private equity exposure through a $2.4bn partnership with HarbourVest, but new leadership is aiming higher.

New CEO Salim Ramji, who joined in July, has expressed interest in bringing Vanguard’s hallmark low-cost approach to private markets. “Low-cost investing applies in index and it applies in active,” Ramji said previously. “Over time, I’d also like low-cost investing to apply to private assets.”

Vanguard’s move mirrors a wider trend in the industry. BlackRock recently introduced model portfolios featuring private assets, following its acquisitions of Global Infrastructure Partners and HPS Investment Partners. State Street has partnered with Apollo to launch the first private credit ETF, and Capital Group has teamed up with KKR to create hybrid public-private funds for wealthy investors.

As Vanguard oversees $10.4tn in global assets, a strategic expansion into alternatives could reshape retail access to private markets on a large scale.