Blackstone, Apollo, Ares Partner with OneDigital to Bring Private Equity into 401(k) Plans

Strategic Rationale Amid Regulatory Shifts

The move responds to surging demand for private market access in defined contribution plans, following similar initiatives by Fidelity Investments, Empower, and Morgan Stanley in 2025.[2] Raj Dhanda, Ares’ global head of wealth management, noted that private assets can deliver growth, income, and long-term stability for retirement participants.[1]

A key catalyst is the Department of Labor’s Employee Benefits Security Administration (EBSA), which on January 13, 2026, proposed rules clarifying fiduciary duties for private assets in 401(k)s. This follows President Donald Trump’s executive order directing regulators to enable alternative investments in retirement plans.[2] OneDigital plans to launch collective investment trusts (CITs) incorporating privates this quarter, further easing access.[2]

Implications for Private Equity Firms and Retirement Industry

For **Blackstone (BX)**, **Apollo (APO)**, and **Ares (ARES)**, the partnership accelerates **private equity distribution channels into retail wealth**, tapping $8 trillion in U.S. 401(k) assets amid slowing institutional fundraising. Blackstone’s stock traded at $163.50 on January 16, 2026, up 6.07% year-to-date, reflecting constructive market conditions for alternative managers.[3] Ares shares stood at $164.26 as of early December 2025, with analysts forecasting a 11.77% upside to $183.60 on average.[4]

Apollo benefits from its retirement services arm via Athene Holding, which issues annuities and funding agreements, complementing the yield, hybrid, and equity strategies in its asset management segment.[1] Barclays maintains an Overweight on Apollo with a $168 target, citing improving realizations and overblown credit concerns.[1]

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Broader **401(k) private equity trends** and Fiduciary Risks

This initiative highlights **cross-border M&A trends 2025** evolving into domestic retail expansion for alternatives, as firms like KKR and Carlyle eye similar **private equity exit strategies in wealth management**. Vince Morris, OneDigital’s president of financial services, emphasized structured access to improve retirement outcomes, echoing institutional successes.[2]

Plan sponsors retain adoption discretion, but DOL scrutiny persists on illiquidity and valuation risks. Historical precedents, like 2025 crypto pilots, underscore the need for robust governance to avoid fiduciary breaches.[2]

• Enhances portfolio diversification for 401(k) participants seeking alpha beyond public markets.
• Positions OneDigital competitively against larger recordkeepers entering alts.
• Supports PE firms’ AUM growth amid 2026’s expected realization uptick.[1]