New initiative will bring Sagard’s investment products to defined contribution retirement plans
Other asset managers selected include Apollo, Franklin Templeton, Goldman Sachs, Neuberger Berman, PIMCO, and Partners Group
NEW YORK–(BUSINESS WIRE)–Empower, the second-largest retirement services provider in the U.S., administering more than $1.8 trillion in assets for 19 million investors, today announced a partnership with Sagard, a global alternative asset manager with over US$27B of assets under management, in a new program that will pave the way for private market investments to be included within defined contribution retirement plans.
As part of this new program, Sagard-managed strategies will be made accessible via collective investment trusts in coming years1. These structures are designed to bring the benefits of private market investing—such as diversification, potential for enhanced returns, and exposure to less correlated assets—to retirement plan participants in a cost-efficient and liquidity-aware manner.
“Partnering with Empower in this groundbreaking initiative aligns perfectly with our objective to broaden access to high-quality alternative investments in the U.S.,” said Paul Desmarais III, Chairman and CEO at Sagard. “Private markets have historically been limited to institutional and high-net-worth investors. We’re excited to democratize these investment strategies by making them available to a wider population saving for retirement.”
“Empower is making a profound move on behalf of American retirement investors who should have the ability to invest in an asset class that has the potential to diversify their portfolios and offer opportunities for returns in new ways,” said Empower President and CEO Edmund F. Murphy III. “Sagard’s diversified alternative investment strategies in private equity, private credit, and real estate; successful track record of performance, and strong ability to partner on new product launches make them an ideal partner in building this exciting new program.”
Key Benefits of the Program Include:
- Access to Institutional-Quality Private Market Investments: Through Sagard’s strategies, eligible participants will gain exposure to opportunities in private markets that have traditionally been unavailable through defined contribution plans.
- Portfolio Diversification: Including private markets in retirement portfolios offers potential for differentiated returns and improved risk-adjusted performance over the long term.
- Efficient and Transparent Structures: Investments will be delivered through collective investment trusts to offer appropriate liquidity management and cost efficiencies for retirement plan participants.
Empower and Sagard expect to collaborate on broadening access to Sagard-managed investment strategies in years to come. More details about Empower’s announcement can be found here.
About Sagard
Sagard is a global multi-strategy alternative asset management firm with over US$27B under management, 150 portfolio companies, and 400 professionals. We invest in venture capital, private equity, private credit, and real estate. We deliver flexible capital, an entrepreneurial culture, and a global network of investors, commercial partners, advisors, and value-creation experts. Our firm has offices in Canada, the United States, Europe, and the Middle East.
For more information, visit www.sagard.com or follow us on LinkedIn.
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| 1Retirement plan participants can only access private market investments through Empower if their employers allow these investments to be made available. Employers must work with an advisor to offer these investments through a managed account platform created in conjunction with Empower. The managed account requirement is offered to match the investment against an individual’s risk tolerance and long-term financial goals, among other factors. |
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