Blue Owl Capital and Voya Financial have entered into a strategic partnership aimed at bringing private markets investment options to defined contribution retirement plans, the firms announced Monday.
The collaboration will focus on developing private market strategies within collective investment trusts, which will be available through advisor-managed accounts and target date solutions on Voya’s retirement platform. The initiative is designed to address growing interest among retirement savers and plan sponsors in alternative investments as a way to diversify portfolios and potentially improve retirement outcomes.
In a recent survey of retirement plan participants, Empower found four-fifths (79%) agreed retail investors should be able to access the same investment products institutions do, while three-fourths (76%) wanted 401(k) options that reflect the evolution of markets.
Voya, which serves more than thirty-nine thousand US employers and over nine million retirement plan participants, holds more than $630 billion in defined contribution assets on its platform. Blue Owl, meanwhile, manages more than $273 billion in assets and is known for its private markets solutions for the private wealth channel.
The partnership is expected to expand beyond defined contribution plans. Blue Owl and Voya Investment Management plan to collaborate on additional retirement-focused private investment solutions that may be offered through third-party retirement platforms and other channels. The firms are also exploring opportunities to enhance insurance asset management offerings by combining Blue Owl’s private credit expertise with Voya’s fixed income capabilities.
Doug Ostrover and Marc Lipschultz, co-chief executives of Blue Owl, said in a statement, “Voya’s leadership and deep expertise in the retirement market make them an ideal partner as we work together to expand access to private markets. This collaboration with Voya is a natural extension of our mission, laying the foundation for future initiatives within the retirement channel.”
Heather Lavallee, chief executive of Voya Financial, said, “Partnering with Blue Owl enables us to expand access to innovative solutions that can help clients better achieve their retirement goals.”
Both firms indicated that they anticipate further collaboration, particularly in developing investment strategies for the institutional insurance market. The move comes as more plan sponsors and asset managers seek to incorporate alternative investments into workplace retirement plans – including an enhanced target-date product State Street launched in partnership with Apollo, and a UMA offering it launched through an alliance with iCapital.
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