- BlackRock partners with Great Gray Trust Company for a new target date retirement solution.
- Custom glidepath includes strategic allocation in both public and private markets.
- Target date solution aims to enhance performance by 50 basis points annually.
BlackRock (BLK, Financial) has been chosen by Great Gray Trust Company, LLC to provide a custom glidepath for its new target date retirement solution, integrating exposures to private equity and private credit. This strategic move leverages BlackRock's capabilities in index equity, index fixed income, and private market offerings to optimize asset allocation across both public and private sectors.
Great Gray Trust Company, managing assets over $210 billion as of March 31, 2025, is set to enhance its retirement solutions through this collaboration. BlackRock, a global leader in defined contribution investments, believes incorporating private market allocations can add substantial value, potentially delivering a 50 basis point uplift in annual portfolio returns over the lifecycle of target date funds.
The partnership also involves Wilshire Advisors LLC, who will oversee the implementation and liquidity management of the strategy. This marks a significant evolution in defined contribution plans, as private assets grow as a critical component of economic growth and investor returns.
Nick Nefouse, BlackRock's Global Head of Retirement Solutions, emphasized the need for a thoughtful approach in blending public and private market exposures, especially for defined contribution plans. Rob Barnett, CEO of Great Gray Trust Company, highlighted the mission to innovate the U.S. retirement market by broadening access to private markets for American savers.
BlackRock's recent research paper, "The power of private markets," outlines these new approaches to incorporating private market solutions, projecting approximately 15% more funds for retirees over a 40-year compounding period. This initiative aligns with BlackRock's broader commitment to evolving investment solutions to meet changing client demands and economic trends.
