Empower to Offer Private Markets Investments to Retirement Plans
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Firm aligns with Apollo,
Franklin Templeton , Goldman Sachs,Neuberger Berman , PIMCO, Partners Group and Sagard - Nation’s second largest retirement plan provider opens private market investing to its 19 million plan participants1
Empower has aligned with top-tier private investments fund managers and custodians, including Apollo,
Private investments offered through these firms may be implemented through collective investment trusts (CITs), providing limited exposure to diversified pools of private equity, private credit and private real estate, a structure that is designed to provide liquidity protection and reduced fee exposure.
This landmark initiative is designed to provide individuals with access to a broader range of investment options, enabling them to further diversify their portfolios and potentially maximize their retirement savings.
“Empower is making a profound move on behalf of American retirement investors who should have the ability to invest in an asset class that has the potential to diversify their portfolios and offer opportunities for returns in new ways,” said Empower President and CEO Edmund F. Murphy III. “Like any investment, we believe in the importance of advice and risk mitigation for every investor. These new opportunities offered under an advice model deliver the guardrails necessary to help an entirely new investor class access private investing.”
Key Highlights of the Initiative:
- Access to Private Markets Investments: Participants will be able to invest in private equity, private credit and private real estate funds through their workplace plans, gaining access to investment types that were previously limited to institutional investors and ultra-wealth investors.
- Diversification for Retirement Portfolios: Private markets have the potential to provide returns from new investment sources compared to publicly traded equities or bonds. By offering access to private markets, Empower enables retirement plan participants to further diversify their retirement portfolios, potentially altering their risk profile and offering new growth opportunities.
- An Advisory Requirement: Retirement plan participants can only access private market investments through Empower if their employers allow these investments to be made available. Employers must work with an advisor to offer these investments through a managed account platform created in conjunction with Empower. The managed account requirement is offered to match the investment against an individual’s risk tolerance and long-term financial goals, among other factors.
- Enhanced Investment Structure: This offer will complement existing investment choices available in the plan’s investment menu. The private investments offered through private investment managers may be accessed through CITs, a structure that provides limited exposure to pools of private equity, private credit or private real estate providing participants with enhanced liquidity features while helping mitigate fee exposure.
“As a leader in private markets, democratizing alternative investing is one of our firm’s biggest priorities,” said
By expanding investment options to include private markets, Empower is broadening the investing universe to help grow retirement savings to millions of people. Historically, private markets have shown the potential to be a high-performing asset class but remain largely inaccessible for most retirement plan participants.
The move to integrate private markets into 401(k)-type plans comes in response to growing interest from investors seeking to include so-called alternative assets in their retirement plans. Traditionally, private markets investing has been restricted to institutional investors and high-net-worth individuals but Empower is making it accessible to the broader US workforce, helping to expand the playing field in retirement planning.
“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,” said Murphy. “This move is designed to provide more robust retirement options for those who want to take a new approach to their retirement savings.”
About Empower
Recognized as the second-largest retirement services provider in the
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Pensions & Investments DC Recordkeeper Survey (2024). Ranking measured by total number of participants as ofDecember 31, 2023 . -
As of
March 31, 2025 . Assets under administration (AUA) refers to the assets administered by Empower. AUA does not reflect the financial stability or strength of a company.
Empower refers to the products and services offered by
The information contained herein is being provided for discussion purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy or sell securities. All visuals are illustrative only.
Private equity investments are not appropriate for all investors and come with higher risks and fees. Empower assesses an individual’s financial situation, investment objectives, risk tolerance, time horizon, liquidity needs, and investment knowledge to determine if such investments are appropriate and require the investor to be an Accredited Investor.
Goldman Sachs does not currently offer these products but will be launching them subject to pending internal approvals.
“EMPOWER” and all associated logos and product names are trademarks of
©2025
Learn more
To learn more about how we’re empowering plan sponsors and their participants to be more engaged in their retirement plans than ever before, call us at 800-719-9914.
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