A trio of investment managers has teamed up to launch a turnkey private markets portfolio product for defined contribution plans. Target-date fund manager AllianceBernstein and alternative asset managers Brookfield Asset Management and Carlyle announced their collaboration to deliver ABC [ONE], a single source of private-market exposure for a DC plan’s Qualified Default Investment Alternative.
Meant for use alongside target-date funds and managed accounts, ABC [ONE] will dynamically adjust allocations to private credit, private real estate and private equity based on the plan participant’s retirement-savings stage. AllianceBernstein will manage allocations to private markets alongside the DC plan’s QDIA and the private credit component, while Brookfield will manage the private real estate component, and Carlyle will manage the private equity component.
ABC [ONE] will use AllianceBernstein’s proprietary DC technology platform.
The move comes at a time when alternative asset managers are increasingly launching private-market products for the DC plan market. Most recently, PGIM announced the launch of its first private credit CIT for DC plans, following in the footsteps of Goldman Sachs, Invesco and others. With the Trump administration pushing for inclusion of private assets in DC plans and the Department of Labor proposing new rules on their use, research firm Deloitte estimates that by 2030, private-market allocations in DC plans could reach $1 trillion or 6.1% of total AUM.
“We’re pleased to bring together Brookfield, Carlyle and AB to provide a turnkey private markets solution to DC plans that gives retirement savers an allocation to private markets that dynamically adjusts by age,” said Onur Erzan, president of AllianceBernstein, in a statement. “For more than a decade, AB has been incorporating private assets in custom target-date funds, in both the U.S. and the U.K. Based on our investment research and hands-on experience, we believe that when a plan decides to include them, it’s critical to optimize the deployment of these assets for DC participants.”
Likewise, Connor Teskey, CEO of Brookfield Asset Management, and John Redett, co-president and head of global private equity at Carlyle, expressed their excitement about the opportunity to bring private market investment strategies to DC plan participants.
“We believe private equity can play a meaningful role in enhancing retirement outcomes over time,” Redett said in a statement. “Our global private equity platform draws on decades of deep experience investing across cycles, sectors, and regions. By combining expertise with a diversified investment approach, we aim to help investors access opportunities aligned with long-term retirement needs.”
Teskey mentioned the diversification benefits of private real estate and “differentiated return drivers” that can support more stable long-term outcomes for DC plans.