Blackstone muscling into 401(k) space with new DC plan unit

Blackstone is making a significant move into the defined-contribution retirement market, launching a new business unit dedicated to expanding access to private assets such as private equity and private credit within 401(k) plans.

The new unit, which sits within Blackstone’s $280 billion private-wealth group, will focus on developing investment products for defined-contribution plans and managing partnerships with major industry players.

Among its first initiatives is a collaboration with Vanguard Group and Wellington Management to create offerings that blend public and private assets. The group will also prioritize investor education around private markets.

Read more: Blackstone, Vanguard, Wellington fire first joint shot into interval fund space

Heather von Zuben, who previously led Blackstone’s open-ended credit funds for the private-wealth market, has been appointed global head of retirement solutions. Tom Nides, a former banker and diplomat who joined Blackstone last year, will serve as chairman of the unit. Paul Quinlan, a senior managing director in Blackstone’s private-wealth business, will head up the US defined-contribution effort.

The launch comes as recent regulatory changes open the door for private investments in retirement plans. In August, President Trump signed an executive order directing the Department of Labor and the Securities and Exchange Commission to make it easier for employers to include nontraditional assets in 401(k) plans.

The move is expected to help unlock a portion of the $13 trillion US defined-contribution market for private investments, a sector long viewed as a key growth opportunity by major asset managers. However, concerns remain among employers about the potential for lawsuits and the unique risks associated with private assets, which often require longer lock-up periods and carry higher fees than traditional investments.

Blackstone’s move follows similar efforts by other asset managers. Apollo Global Management and State Street have introduced a target-date fund that combines public and private investments, while Blue Owl Capital is working with Voya Financial on new 401(k) products. BlackRock is also developing a public-private offering for the retirement market, as reported by the Wall Street Journal.

In a statement, Jon Gray, president and chief operating officer of Blackstone, said the firm is “well positioned to be the partner of choice for retirement solution providers given our brand, track record and broad slate of perpetual products.”

Tom Nides, chairman of the new defined-contribution unit, added that Blackstone is “cementing [its] status with the industry’s first dedicated Defined Contribution Unit” and looks forward to “unlock[ing] investment opportunities for retirement savers.”

The US retirement market remains substantial and continues to grow. According to the latest quarterly data from the Investment Company Institute, total US retirement assets reached $45.8 trillion at the end of June 2025, up 6% from March.

Defined-contribution plans accounted for $13 trillion, with 401(k) plans representing $9.3 trillion of that total. Mutual funds managed 62% of 401(k) assets, with equity funds being the most common investment type.