Carlyle, Basic Capital Partner to Bring Private Markets to 401(k)s

Carlyle and retirement platform Basic Capital have announced a collaboration to bring private-market investment strategies to 401(k) and other defined contribution plans through SEI products, expanding distribution into workplace retirement accounts.

The arrangement builds on Carlyle’s partnership with SEI and includes several collective investment trusts, with SEI Trust Co. serving as trustee. The vehicles will provide exposure to Carlyle strategies through Basic Capital’s open-architecture platform.

The first offering will combine public equities with Carlyle private equity strategies and is designed to fit within a participant’s existing large-cap equity allocation. The companies said the structure could serve as an alternative to a large-cap core investment option without requiring plan sponsors to redesign their fund lineups or introduce new benchmarks.

“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,” said Hunter Hopcroft, head of investor education at Basic Capital.

The collaboration extends an expanded relationship Carlyle and SEI announced in April, targeting private-market access across wealth and retirement channels. That partnership combines Carlyle’s investment capabilities with SEI’s research, implementation and client delivery resources.

“We believe there is a meaningful opportunity to thoughtfully incorporate private markets into long-term retirement portfolios,” said Bill Ryan, head of retirement solutions at Carlyle.

Basic Capital provides recordkeeping, administration and investment options to employers through a bundled retirement platform.