SEI to build CITs carrying Carlyle private equity for Basic Capital plans

PLANADVISER reported on Oct. 22 that Carlyle private markets strategies will reach 401(k) and other defined contribution plans through collective investment trusts built by SEI Investments for Basic Capital Group's open-architecture platform. SEI Trust Co. will trustee the trusts.

The first product will blend public equity with Carlyle private equity strategies and is designed to sit inside a participant's existing large-cap equity allocation, according to the report.

“We believe there is a meaningful opportunity to thoughtfully incorporate private markets into long-term retirement portfolios,” said Bill Ryan, Carlyle's head of retirement solutions. He said Basic Capital's open-architecture platform “provides an important avenue” for bringing the strategies into defined contribution plans.

In August, SEI reached a similar agreement with WTW Investments to develop private market funds available through CITs. CITs are the vehicle private-markets managers are using to reach 401(k) lineups.

Collective investment trusts held 54% of total target-date assets by the end of 2025, having first passed mutual funds as the dominant vehicle in 2024, according to a Morningstar report cited by PLANADVISER.