Would You Like Some Private Equity in Your 401(k)?
Private equity firms, the exclusive money managers overseeing $3 trillion worldwide for wealthy investors, are taking preliminary steps to target a new type of client: ordinary people. Carlyle Group and KKR, which usually require clients to commit at least $5 million, are lowering that threshold or starting funds that can be sold directly to individuals. Blackstone Group is developing similar products, according to a person familiar with the plans, who asked not to be named because final decisions on such products haven’t been made. Their ultimate goal is a slice of the $3.57 trillion Americans have accumulated in their 401(k) retirement plans. “We definitely would like to be part of 401(k) platforms,” says Michael Gaviser, a managing director responsible for individual investor products at KKR. “We think about it every day.”
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