Voya, Blue Owl team up to offer private market investments for 401(k) plans
Private market investments in 401(k) plans is having a moment. In May, Empower, the nation’s second largest 401(k) plan provider, launched a new program that will pave the way for private market investments to be included within defined contribution plans.
Now, retirement services provider Voya Financial and Blue Owl Capital, a $273 billion credit-focused alternatives manager, are partnering to develop private markets investment products in all-in-one target date funds for employer-sponsored retirement savings plans. Initially, the focus will be on collective investment trusts (CITs), which grant access to private equity, credit, real estate and infrastructure, for 401(k) and other defined contribution plans.
Voya serves more than 39,000 U.S. employers and their more than nine million retirement plan participants, who hold over $630 billion in defined contribution assets on Voya’s retirement platform. Blue Owl is a global leader in bringing premier private markets solutions to the private wealth channel, serving nearly 150,000 investors globally.
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The partnership will offer private markets strategies in vehicles tailored for defined contribution retirement plans, addressing the growing demand for alternative investment solutions within retirement portfolios.
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Similarly to Empower’s managed account services on its platform, the CITs will be available through advisor-managed accounts on Voya’s retirement platform and through target date solutions managed by Voya Investment Management. As the markets for these products continue to evolve, Blue Owl and Voya will also collaborate to develop retirement-focused private investment solutions available through other channels, including third-party retirement platforms and target date account providers.
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This initiative opens the door for retirement plan participants to access a broader range of investment opportunities, supporting individuals in building more resilient portfolios and optimizing their retirement outcomes.
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“We see tremendous opportunity in enabling retirement plan participants to access private markets in defined contribution accounts by leveraging our significant presence in the private wealth space and Voya’s status as … solutions provider to more than nine million participant accounts,” said Sean Connor, Global CEO of Private Wealth at Blue Owl said.
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However, the private market investment approach to employer-sponsored 401(k) plans is getting pushback because of potential investment risk. Since Empower’s private market announcement, the nation’s second largest 401(k) plan provider has gotten major backlash from Senator Elizabeth Warren (D-MA), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, who wrote a letter to Empower’s CEO asking what safeguards the plan provider will put in place to protect Empower’s plan participants who choose to invest in private markets.
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Empower’s CEO Edmund F. Murphy III formerly responded to Sen. Warren’s inquiry, in a letter: “Empower serves more than 19 million Americans, and our mission is clear: to help all individuals— regardless of income or net worth—build lasting financial security through access to well-designed, responsibly managed investment opportunities,” wrote Murphy in a letter to the Senator. “In our view, this should now include carefully structured access to private markets.”
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However, Sen. Warren doubled down on her efforts, following up last week on her initial letter after Murphy’s initial response failed to adequately answer all her questions about private market investments. “Unfortunately, your response failed to meaningfully explain how Empower’s efforts to invest retirement savings in private funds–which often yield returns on-par with the public market while charging exorbitant fees–will [help your members],” wrote Sen. Warren. She has requested answers from Empower CEO Murphy to her unanswered questions by July 25, 2025.
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BlackRock, another major player in the asset management business with more than $11 trillion in assets under management in 2024, announced a new private market partnership in June. BlackRock made a bold investment move by partnering with Great Gray Trust Company, which offers 401(k) investments, to provide a target date solution with a 5%-to-20% allocation to private investments in the first half of 2026.
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“The retirement landscape is expanding, and we see providing plan participants access to private markets assets as a way to build more resilient investment portfolios and pursue stronger long-term returns,” said Blue Owl’s Co-CEOs Doug Ostrover and Marc Lipschultz.
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“Voya works closely with advisors and consultants to offer tailored solutions for employers. By combining that approach with Blue Owl’s capabilities, we’re elevating how we support workplace retirement practices,” said Jay Kaduson, CEO of Voya’s Workplace Solutions, and Matt Toms, CEO of
Voya IM. “Together, we’re empowering individuals to reach their retirement goals.”
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