(HedgeCo.Net) Private-equity giant Blackstone is building a new business aimed at unlocking the $9 trillion U.S. 401(k) market for alternative investments — a move some are calling a “revolution in retirement finance.”

The firm this week unveiled Blackstone Retirement Solutions, a division designed to integrate private equity, real estate, credit, and infrastructure into defined-contribution plans. The launch follows new federal guidance easing restrictions on illiquid assets within retirement portfolios.

Heather von Zuben, formerly of Goldman Sachs and Blackstone Credit & Insurance, was appointed Global Head of Retirement Solutions. She will report to Private Wealth Solutions Chairman Tom Nides.

“Access to private markets should not be limited to the institutional elite,” von Zuben said. “We believe long-term savers deserve exposure to the same high-conviction strategies that have historically driven outsized returns.”

Critics remain cautious. “Liquidity, valuation, and fiduciary oversight are serious concerns,” said Alicia Munnell, director of Boston College’s Center for Retirement Research. “The industry must prove it can manage complexity without endangering savers.”

Blackstone joins Apollo, KKR, and Blue Owl in tailoring “alts for retirement” products, hoping to capture a new growth channel as institutional inflows plateau.

Industry analysts say the race to democratize alternatives could reshape how Americans invest for retirement over the next decade — but warn that the learning curve for both plan sponsors and regulators will be steep.