Displaying items by tag: private equity

Empower, the $1.8 trillion 401(k) plan provider, will begin offering private credit, equity, and real estate investments in some retirement accounts later this year through partnerships with firms like Apollo and Partners Group. 

This move marks the largest entry yet of private assets into 401(k)-type plans, a $12.4 trillion market that Wall Street firms have long sought access to. While proponents argue private assets can enhance returns and reduce volatility, challenges remain—such as illiquidity, valuation complexity, and higher fees, which range from 1% to 1.6% versus the 0.28% average for typical target-date funds. 

Only select managed account services will offer these investments, with five employers already signed up to participate in the initial rollout. Allocations could range from 5% to 20% of a portfolio, depending on factors like age and risk tolerance.

Finsum: Private markets have definitely gone wide in the last decade but this sort of expansion could really help retirees. 

Blackstone has officially closed its fourth energy-transition-focused private equity fund, BETP IV, at its hard cap of $5.6 billion—marking a 33% increase over its previous fund. The firm’s Energy Transition Partners platform targets scalable investments that promote cleaner, more reliable, and affordable energy solutions across global markets. 

BETP has received multiple industry honors, including being named Private Equity International’s Energy Private Equity Firm of the Year for three consecutive years and winning IJ Investor’s 2024 Market Innovation of the Year for North America. David Foley, who leads the platform globally, highlighted strong investor confidence and the growing demand for electricity and grid efficiency as key drivers behind the fund’s momentum. 

Notable portfolio companies include Energy Exemplar, Sediver, Lancium, and Trystar—each playing a role in boosting grid resilience, energy modeling, and infrastructure. Blackstone has over $23.5 billion deployed globally.

Finsum: Private equities investment in energy solutions is something to keep an eye on in the new administration. 

Over a 27-year period ending in Q3 2024, Cliffwater found that U.S. buyouts (private equity) consistently traded at a 29% EBITDA multiple discount relative to public equities, contributing significantly to private equity’s historical outperformance. This discount, combined with higher earnings yields and potential valuation convergence, helped private equity deliver a 6% gross return premium, which nets to about 2.2% after fees compared to public markets. 

Several structural tailwinds reinforce private equity’s appeal, including a shrinking pool of public companies, persistently low credit spreads, and extreme valuation gaps between large-growth and small-value stocks. 

These valuation disparities, combined with the relative strength of the U.S. dollar, give large-cap firms and private equity buyers strategic advantages in acquiring smaller domestic and foreign targets. Meanwhile, the sluggish IPO and M&A markets in 2025 have led to a spike in discounted private equity secondary sales, offering further entry points for opportunistic investors. 

Finsum: Despite recent macro headwinds, these intersecting forces create a compelling backdrop for private equity to continue outperforming.

American Energy Fund (AEF) has broadened its asset-backed investment lineup, opening access to domestic oil and gas projects for qualified investors. The new opportunities include ventures in the Permian Basin and North Texas, featuring on-site briefings and a focus on operational transparency. 

AEF believes that in today’s turbulent markets, energy investments are regaining appeal as a reliable asset class. These offerings are limited to accredited investors, meaning participants must meet specific wealth, income, or professional standards set by financial regulators. 

By tailoring these opportunities to sophisticated investors, AEF aims to blend performance, visibility, and compliance into its energy investment strategy.

Finsum: The current administration is no doubt making it friendlier for the energy sector, but will tariffs hinder any regulatory ease. 

Blackstone beat first-quarter profit expectations, with distributable earnings rising 11% to $1.41 billion, or $1.09 per share, fueled by strong private equity and credit business performance. Despite the earnings beat, CEO Stephen Schwarzman cautioned that rising market volatility—driven largely by tariff uncertainty—may slow down asset sales in the near term. 

The firm brought in $61.64 billion in inflows, with nearly half directed toward its credit and insurance segment, pushing assets under management to $1.17 trillion. While the private equity division posted a 13% increase in earnings thanks to $6.5 billion in asset sales, the real estate unit remained a drag with a 6% decline in AUM. 

Schwarzman emphasized that a swift resolution to tariff disputes is vital to sustaining economic growth, echoing broader recession concerns from the business community. Despite turbulent markets, Blackstone sees potential in deploying its $177 billion in dry powder amid growing investor caution.

Finsum: Some alts will prove more fruitful in the face of tariffs but fund composition will matter greatly in the P/E space.