Great Gray Teams with BlackRock to Launch First Target Date Fund with Private Market Exposure for DC Plans
Great Gray Trust Company has unveiled its first target date retirement strategy to include both public and private market allocations, marking a major step toward integrating alternative investments into defined contribution (DC) plans. The solution, developed in partnership with BlackRock, will feature exposure to private equity and private credit alongside BlackRock’s index-based equity and fixed income strategies. BlackRock is designing the custom glidepath, while Wilshire Advisors will oversee implementation and liquidity management.
This offering deepens Great Gray’s relationship with BlackRock, which dates back to 2013, and responds to growing demand for private market exposure among plan sponsors and participants. As of March 31, Great Gray oversaw $210 billion in Collective Investment Trust (CIT) assets, while BlackRock manages roughly $1.7 trillion in defined contribution assets, including over $500 billion through its LifePath target date franchise.
“Blending public and private markets exposures requires a thoughtful approach to asset allocation and the ability to actively manage risk across the whole portfolio,” said Nick Nefouse, global head of Retirement Solutions at BlackRock. “That’s especially true for defined contribution plans.”
BlackRock’s own research shows that incorporating private markets into target date solutions can add up to 50 basis points of additional return annually over the lifecycle of a retirement investor. A recent survey from the firm found that 21% of retirement plan advisors plan to incorporate private assets into their DC plans—an emerging trend the new Great Gray strategy aims to support.
Rob Barnett, CEO of Great Gray, emphasized the long-term goal of expanding private market access through innovative portfolio design. “By strategically allocating across public and private markets, BlackRock’s glidepath, systems and people are helping modernize the traditional target date solution,” he said.
The move comes as part of a broader push by BlackRock to democratize access to private markets. In April, the firm launched a public-private model portfolio in partnership with GeoWealth and iCapital, allowing financial advisors to manage alternative and traditional assets within a unified account.