1 The 50bp average annual uplift and 15% higher account balance is derived using the BlackRock Investment Institute’s capital market assumptions (“CMAs”) for private credit (direct lending) and US private equity (buyout). The CMAs used are estimated over a 5- to 30-year investment horizon, allowing for flexibility in portfolio construction and scenario analysis and assume a 10% return assumption for private credit, 11% for private equity, 5% for public fixed income, and 8% for public equities. A 10-20% average reallocation from public to private blended across private equities and private credit is estimated to provide an uplift of approximately 50bps averaged across target date vintages. Expected returns and risks are forward-looking projections that should not be relied upon when making an investment decision. Such projections do not reflect actual performance and cannot account for the impact that economic, market, and other factors may have on the implementation of an actual investment program, nor do they consider the impact of trading decisions, liquidity constraints, taxes and other factors on future returns. No representation is made that any proposed or future strategy will achieve the expected return or its investment objective. Actual returns may be higher or lower than the expected return. Source: BlackRock. For illustrative purposes only. Allocations are subject to change.
2 The 50bp average annual uplift and 15% higher account balance is derived using the BlackRock Investment Institute’s capital market assumptions (“CMAs”) for private credit (direct lending) and US private equity (buyout). The CMAs used are estimated over a 5- to 30-year investment horizon, allowing for flexibility in portfolio construction and scenario analysis and assume a 10% return assumption for private credit, 11% for private equity, 5% for public fixed income, and 8% for public equities. A 10-20% average reallocation from public to private blended across private equities and private credit is estimated to provide an uplift of approximately 50bps averaged across target date vintages. Expected returns and risks are forward-looking projections that should not be relied upon when making an investment decision. Such projections do not reflect actual performance and cannot account for the impact that economic, market, and other factors may have on the implementation of an actual investment program, nor do they consider the impact of trading decisions, liquidity constraints, taxes and other factors on future returns. No representation is made that any proposed or future strategy will achieve the expected return or its investment objective. Actual returns may be higher or lower than the expected return. Source: BlackRock. For illustrative purposes only. Allocations are subject to change.
3 Preqin data as of Q3 2024, as published in ‘Future of Alternatives 2029’ in June 2025. Private equity is inclusive of venture capital. There is no guarantee that any forecasts made will come to pass. 1S&P Capital IQ, BlackRock. As of February 24, 2025. Reproduction of any information, data or material, including ratings (“Content”) in any form, is prohibited except with the prior written permission of the relevant party. Such party, its affiliates and suppliers (“Content Providers”) do not guarantee the accuracy, adequacy, completeness, timeliness or availability of any Content and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such Content. In no event shall Content Providers be liable for any damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with any use of the Content. A reference to a particular investment or security, a rating or any observation concerning an investment that is part of the Content is not a recommendation to buy, sell or hold such investment or security, does not address the suitability of an investment or security and should not be relied on as investment advice. Credit ratings are statements of opinions and are not statements of fact.
4 Public Plans Database, accessible online at: https://publicplansdata.org/quick-facts/national/#investments. Other alternatives include Private Equity, Other, Hedge Fund, and Misc. Alternatives. Weights to these asset classes in 2001 were 3.51%, 0.08%, 0.36%, and 0.35%, respectively. Weights in 2011 were 8.60%, 0.10%, 3.76%, 1.05%. Weights in 2023 were 14.02%, 0.05%, 6.36%, and 1.86%.
Incorporating alternative investments into a portfolio presents the opportunity for significant losses including in some cases, losses which exceed the principal amount invested. Also, some alternative investments have experienced periods of extreme volatility and in general, are not suitable for all investors. Asset allocation and diversification strategies do not ensure profit or protect against loss in declining markets.
The opinions expressed herein may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by BlackRock to be reliable. No representation is made that this information is accurate or complete. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.
This material does not constitute a recommendation by BlackRock, or an offer to sell, or a solicitation of any offer to buy or sell any securities, product or service. The information is not intended to provide investment advice. BlackRock does not guarantee the suitability or potential value of any particular investment. This is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution would be unlawful under securities laws of such jurisdiction. Any distribution, by whatever means, of this information and related material to persons other than those referred to herein is strictly prohibited.
Past performance is no guarantee of future results.
Investing involves risk, including possible loss of principal.
Investment in funds is subject to the risks of the underlying funds. The principal value of the funds is not guaranteed at any time. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s interest, when redeemed, may be worth more or less than the original cost. Any index returns that may be displayed herein are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index.
FOR INSTITUTIONAL AND FINANCIAL PROFESSIONAL USE ONLY
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK and LIFEPATH are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
