June 26 (Reuters) - BlackRock ( BLK ) is set to include

private assets in its retirement plans as it expands into

alternative investments, the world's largest asset manager said

on Monday.

The move marks a significant shift in how retirement

products are structured, bringing traditionally illiquid and

high-fee private market investments into mainstream retirement

portfolios.

The New York-based firm plans to offer a target-date

fund - an age-based retirement investment that combines stocks,

bonds and other assets - with allocations to private equity and

private credit in the first half of 2026.

Retirement money is a core business for BlackRock ( BLK ) and

accounts for more than half of the money the company manages.

As a push towards that move, BlackRock ( BLK ) is providing some

public and private market offerings for a new target-date

retirement fund offered by Great Gray Trust.

Great Gray, which offers retirement investment options and

manages over $210 billion in assets, will use BlackRock's ( BLK ) equity

and fixed income index offerings as well as private equity

investments for its fund.

The Wall Street Journal first reported the move earlier in

the day.

BlackRock's ( BLK ) approach would include a 5% to 20% allocation to

private assets in the retirement plans, depending on the

investor's age, according to a research paper released on

Thursday.

While the demand for exposure to private assets has grown,

some sponsors have concerns around adding them to retirement

plans for reasons such as liquidity, transparency and litigation

risk.

BlackRock CFO Martin Small said earlier this month there was

a real pathway for private markets making their way into

target-date funds, adding that it will take some regulatory

support.

The firm estimates that adding private markets exposure to

target-dated funds could increase returns by an additional 50

basis points each year.

BlackRock ( BLK ) anticipates portfolios in the future will comprise

50% public equities, 30% public fixed income and 20% private

markets.