Key Takeaways
- • Carlyle and tech retirement platform Basic Capital have announced a collaboration to make Carlyle's private markets strategies available to US retirement savers.
- • Carlyle's strategies will be accessible through 401(k) and other defined contribution plans on Basic Capital's open-architecture platform, as well as certain SEI products.
- • SEI access stems from Carlyle and fund administrator SEI's strategic partnership, which will create several collective investment trusts.
- • The structure positions private markets exposure as an alternative to a large-cap core option without restructuring plan fund lineups or adding new benchmarks.
Summary
Carlyle and Basic Capital, a technology-focused retirement platform, have announced a collaboration intended to broaden access to private markets investing for American pension savers. Under the arrangement, Carlyle's private markets investment strategies will be available on Basic Capital's open-architecture platform through 401(k) and other defined contribution plans, as well as through certain SEI products.
Access to the SEI products rests on a strategic partnership between Carlyle and fund administrator SEI, which will result in the creation of several collective investment trusts. The collaboration is designed to give plan sponsors and their advisors a new way to expand the investment options available to retirement savers.
According to the announcement, the structure can function as a differentiated alternative to a large-cap core option already common in 401(k) lineups. Notably, it does not require plan sponsors to restructure their existing fund lineups or add new benchmarks.
Hunter Hopcroft, head of investor education at Basic Capital, said retirement savers have largely been limited to public markets, even as institutions have used private markets for decades to diversify and strengthen long-term returns. Bill Ryan, head of retirement solutions at Carlyle, said the firm believes there is a meaningful opportunity to thoughtfully incorporate private markets into long-term retirement portfolios. The source notes that 401(k) plans have historically offered savers little exposure to private equity, private credit, and real asset strategies that institutional investors have long used to diversify portfolios.
Access to the SEI products rests on a strategic partnership between Carlyle and fund administrator SEI, which will result in the creation of several collective investment trusts. The collaboration is designed to give plan sponsors and their advisors a new way to expand the investment options available to retirement savers.
According to the announcement, the structure can function as a differentiated alternative to a large-cap core option already common in 401(k) lineups. Notably, it does not require plan sponsors to restructure their existing fund lineups or add new benchmarks.
Hunter Hopcroft, head of investor education at Basic Capital, said retirement savers have largely been limited to public markets, even as institutions have used private markets for decades to diversify and strengthen long-term returns. Bill Ryan, head of retirement solutions at Carlyle, said the firm believes there is a meaningful opportunity to thoughtfully incorporate private markets into long-term retirement portfolios. The source notes that 401(k) plans have historically offered savers little exposure to private equity, private credit, and real asset strategies that institutional investors have long used to diversify portfolios.
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