Private-markets heavyweight Blue Owl Capital is moving to expand its footprint in American retirement plans, teaming up with Voya Financial to make private investments more accessible to 401(k) participants.
The two firms are collaborating to develop investment products that incorporate private credit and private real estate into target-date funds—the all-in-one portfolios commonly used in defined-contribution plans like 401(k)s. These new offerings are expected to launch before the end of the year and will be modeled after strategies Blue Owl already uses for high-net-worth investors.
“The power of the partnership is they have the ecosystem,” said Marc Lipschultz, Blue Owl Co-CEO. “We have the actual content that has historically not been available to individuals.”
This push reflects a broader trend among private-equity and alternative-asset managers seeking to tap into the massive U.S. retirement market, especially as growth from traditional institutional investors—such as pensions and endowments—levels off. The 401(k) market represents a $12.4 trillion opportunity, making it a prime target for expansion.
Historically, private investments have been excluded from most 401(k) plans due to their illiquidity, valuation challenges, and higher fees, which have made employers cautious. However, the landscape is shifting. In May, Empower—one of the largest 401(k) administrators—announced it would begin allowing allocations to private credit, equity, and real estate. Similarly, State Street and Apollo Global Management launched a target-date fund this spring that includes a 10% allocation to private assets.
Adding to the momentum, the Biden Administration is expected to issue an executive order instructing the Department of Labor and the Securities and Exchange Commission to clarify and ease regulations surrounding private investments in retirement plans, according to sources familiar with the matter.
Voya, headquartered in New York, serves over 39,000 employers and manages more than $630 billion in defined-contribution assets for more than 9 million plan participants. Meanwhile, 40% of Blue Owl’s $273 billion in assets under management already comes from private wealth clients, trailing only Blackstone in that category.
“It’s one thing to say it’s a big market, we’re going to go get it,” said Sean Connor, global CEO of private wealth at Blue Owl. “There’s a reason people haven’t done it—it’s hard.”
As part of the expanded partnership, Blue Owl will also manage a portion of Voya’s assets through its credit strategies. In return, Voya’s asset-management division will oversee the bond portfolios of Blue Owl’s insurance clients.
This initiative marks a significant step in the democratization of private investments, aiming to bring institutional-quality strategies to everyday retirement savers—if the infrastructure and regulatory guidance fall into place.
