Strategic Partnership Boosts Private Markets for Retirement Plans
Blue Owl Capital Teams Up with Voya Financial
Blue Owl Capital Inc. (NYSE: OWL), a prominent alternative asset manager, has announced a significant collaboration with Voya Financial, Inc. (NYSE: VOYA), recognized as a leader in providing retirement and investment solutions. This strategic partnership aims to develop private market investment products specifically designed for defined contribution retirement plans.
Voya's Comprehensive Service Offering
Voya serves a vast network of over 39,000 employers across the United States and supports more than nine million retirement plan participants. These participants hold substantial assets, exceeding $630 billion, in defined contribution plans managed by Voya. In contrast, Blue Owl boasts a management portfolio of over $273 billion and stands as a leader in delivering premier private market solutions to private wealth investors, with nearly 150,000 investors globally. This partnership is a pivotal step in bringing expertise from both companies to enhance retirement investment options.
Introducing Collective Investment Trusts
The collaboration will kick off with the development of collective investment trusts (CITs) tailored for defined contribution retirement plans. These CITs will provide access to private market strategies managed by both Blue Owl and Voya. These investment vehicles will be made available via advisor-managed accounts on Voya's retirement platform, as well as through target date solutions which will be managed by Voya Investment Management. As the product landscape evolves, opportunities will arise for further innovative retirement-focused investment solutions, including offerings through third-party retirement platforms.
Empowering Participants with Innovative Investment Solutions
This initiative is designed to empower retirement plan participants, providing them with access to a wider range of investment opportunities. The ultimate goal is to assist individuals in constructing more resilient investment portfolios that can significantly improve their retirement outcomes. Blue Owl's Co-CEOs, Doug Ostrover and Marc Lipschultz, emphasized the value of Voya's extensive experience in the retirement sector. They stated, "This collaboration with Voya is a natural extension of our mission, laying the foundation for future initiatives within the retirement channel." They believe that providing access to private market assets will help achieve stronger long-term investment returns, perfectly aligning with the objectives of retirement plan participants.
Comments from Leadership at Voya
Heather Lavallee, CEO of Voya Financial, expressed enthusiasm about the partnership, stating, "At Voya, we're committed to helping retirement savers and their families build stronger financial futures. Partnering with Blue Owl allows us to offer investment tools—such as access to private market options—to meet our clients' evolving needs." This sentiment highlights the commitment of both companies to innovate and provide better retirement solutions for clients.
Future Collaborations Beyond Retirement Plans
Looking forward, Blue Owl and Voya are keen to explore additional collaboration opportunities beyond retirement products. This includes enhancing tailored solutions within the insurance asset management domain, leveraging their respective expertise for mutual benefit. Voya plans to integrate Blue Owl's strategies into its direct lending and investment-grade asset-backed finance sector, creating a holistic approach to asset management in private and public credit.
About Blue Owl
Blue Owl Capital (NYSE: OWL) is at the forefront of redefining alternative asset management. With over $273 billion in assets under management, Blue Owl invests across multi-strategy platforms focusing on Credit, Real Assets, and GP Strategic Capital. The firm aims to deliver strong, risk-adjusted returns while maintaining capital preservation for its clients.
About Voya Financial
Voya Financial, Inc. (NYSE: VOYA) is dedicated to fostering financial confidence among its clients. Voya serves around 15.7 million individual and institutional clients, striving to meet their expectations through a variety of financial products and services. Voya recognizes the importance of establishing a responsible business approach that is socially, ethically, and environmentally conscientious.
Frequently Asked Questions
What is the focus of the partnership between Blue Owl and Voya?
The partnership aims to create private market investment products tailored for defined contribution retirement plans.
How large is Voya Financial's client base?
Voya serves over 39,000 employers and more than nine million retirement plan participants.
What types of investments will be introduced through this partnership?
The partnership will introduce collective investment trusts that offer access to private market strategies.
What are Blue Owl's primary investment focuses?
Blue Owl invests primarily in Credit, Real Assets, and GP Strategic Capital.
How can the partnership impact retirement plan participants?
This initiative aims to enhance access to diverse investment opportunities, leading to better retirement planning outcomes.
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