Neuberger Berman Partners with Empower to Innovate Retirement Investing
Neuberger Berman, a respected investment management firm known for its commitment to employee ownership, is excited to announce a strategic partnership with Empower, one of the largest retirement services providers in the United States. This collaboration marks a significant step towards making private equity investments more accessible to retirement plan participants across the nation.
Democratizing Private Equity for Retirement Savers
This pioneering partnership aims to revolutionize the way retirement plans are structured, integrating private equity investments into defined contribution plans, which have traditionally limited participants to more conventional options. Neuberger Berman and Empower are dedicated to democratizing investment strategies, allowing a broader range of individuals to access private equity, an asset class often reserved for the wealthiest investors.
With Empower supporting nearly 19 million individuals saving for their future through workplace plans, integrating private equity options not only diversifies investment portfolios but also has the potential to enhance overall returns. This strategic move reflects the commitment of both firms to enhance retirement savings for all American workers, ultimately leading to improved financial security in retirement.
Creating Seamless Investment Experiences
Michelle Rappa, Managing Director and Retirement Client Advisor at Neuberger Berman, emphasized that the collaboration creates a cost-effective investment experience for employers and their employees. “Through our partnership with Empower, we are committed to providing seamless access to high-quality private equity investments, breaking down the barriers that previously restricted participation,” she stated. This initiative is seen as a significant milestone in expanding investment opportunities available to those saving for retirement.
The program's success relies on obtaining employer approval and utilizing Empower's managed account platform, which tailors investments according to individual risk profiles and financial goals. By employing collective investment trusts, this innovative approach facilitates the integration of private equity alongside existing plan options, enabling participants to explore new avenues for their retirement savings.
Empowering Participants for Enhanced Returns
Peter von Lehe, Managing Director and Head of Private Markets Investment Solutions and Strategy at Neuberger Berman, highlighted the potential advantages of this initiative: “Our partnership with Empower allows us to offer innovative solutions that can help plan participants achieve long-term retirement goals. The private markets program is designed to provide participants with compelling risk-adjusted returns along with diversified top-tier private equity investments.”
About Neuberger Berman and its Private Markets Division
Established in 1939, Neuberger Berman has grown into a robust player in the investment management space, employing over 2,800 professionals across 26 countries. The firm manages an extensive portfolio that encompasses $515 billion in various asset classes, including equities, fixed income, and real estate, catering to institutions and individual investors alike. With a philosophy rooted in active management and fundamental research, Neuberger Berman continues to earn recognition for its engaging work environment, being named among the best workplaces in the money management sector for over a decade.
Neuberger Berman’s Private Markets division has been operational since 1987, focusing on a diverse range of strategies and asset classes. With over $135 billion in investor commitments, this division serves prestigious institutions, including pension funds and family offices, demonstrating a commitment to delivering excellence in private market investments.
About Empower Retirement Services
Empower stands out as a significant force in the retirement services industry, managing $1.8 trillion in assets across various retirement plans. The firm offers personalized support to 19 million Americans, facilitating better financial management and retirement planning. Through this partnership with Neuberger Berman, Empower continuously seeks to enhance the capabilities available to retirement investors, contributing to a more secure financial future for all.
Frequently Asked Questions
What is the main goal of the Neuberger Berman and Empower collaboration?
The collaboration aims to provide private equity investment options in defined contribution retirement plans, making them more accessible to participants.
How will integrating private equity benefit retirement plan participants?
Integrating private equity allows participants to diversify their portfolios and potentially enhance their returns, improving their overall retirement savings.
What is required from employers to access private equity through this initiative?
Employer approval is necessary, along with the use of Empower’s managed account platform to tailor investments according to each participant's risk tolerance and goals.
What has been Neuberger Berman’s history in investment management?
Founded in 1939, Neuberger Berman has established a strong reputation as an independent, employee-owned investment manager, with a significant presence in various asset classes.
How does Empower support retirement plan participants?
Empower administers retirement plans for millions of Americans, providing retirement advice and wealth management services to help them achieve their financial goals.
