Neuberger Berman Partners with Empower to Enhance Private Equity Access for Retirement Plans

Expanding Private Equity Access: A Collaborative Initiative

Neuberger Berman, a prominent independent investment management firm founded in 1939, has recently announced a groundbreaking collaboration with Empower, the second largest retirement services provider in the United States. This partnership aims to revolutionize the access to private equity investments for individuals participating in retirement plans, particularly in defined contribution schemes.

In the realm of investment management, the introduction of private equity into retirement plans marks a significant shift, addressing a previously underserved market segment. Historically, these high-performing assets have been largely restricted to institutional investors and the wealthiest individuals. However, through this collaboration, Neuberger Berman and Empower are committed to democratizing access, providing opportunities that were once considered exclusive.

Unlocking New Opportunities for Retirement Savers

The collaboration underscores both firms' dedication to enhancing retirement planning options for the average American. With Empower supporting 19 million individuals in their retirement savings goals, this partnership is poised to create pathways for portfolio diversification and potential return enhancement. Michelle Rappa, Managing Director and Retirement Client Advisor for Neuberger Berman, expressed how this initiative forms a "seamless and cost-effective private equity investment experience for participating employers that Empower serves."

By integrating private equity investments into defined contribution plans, participants can now access a class of assets that has proven to deliver superior returns over time. This initiative is not just a financial maneuver; it symbolizes a commitment to creating a more inclusive financial landscape.

How It Works: Access and Implementation

To access these private equity investments, employers must approve the initiative. Participants will utilize Empower's managed account platform, tailored to their individual risk profiles and financial goals. The program employs collective investment trusts, allowing for the integration of private equity alongside existing investment options available in the retirement plans.

Peter von Lehe, Managing Director and Head of Private Markets Investment Solutions and Strategy at Neuberger Berman, emphasized the honor of partnering with Empower to provide impactive solutions for investment strategy. He noted that the private markets program within this collaboration offers participants robust opportunities for achieving compelling risk-adjusted returns.

An Eye on the Future of Retirement Investment

As of March 31, 2025, Neuberger Berman manages an impressive $515 billion in various asset classes, including private equity and hedge fund portfolios. Their longevity and experience in the investment management sphere position them as a credible partner that can deliver on the promises of this collaboration. Empower, administering approximately $1.8 trillion in assets for retirement, also demonstrates a strong foundation and understanding of the industry.

The synergy created through this collaboration is indicative of a progressive future in retirement investing, where diverse portfolios become increasingly accessible for a broader spectrum of individuals. In a financial landscape that often favors the elite, initiatives such as this signal a notable shift toward inclusivity and empowerment of everyday investors.

As we look toward the future, the partnership between Neuberger Berman and Empower signifies hope for many Americans striving to maximize their retirement savings. This initiative could very well serve as a template for future innovations aimed at improving financial literacy and investment accessibility across the board. Understanding that retirement planning is no longer reserved for the affluent opens doors for meaningful change in the financial industry, promoting a healthier investment culture for all.