Great Gray Trust Company is attempting to bridge the gap between traditional retirement vehicles and the burgeoning private markets by integrating alternative asset classes into defined contribution (DC) frameworks. By selecting iCapital as its preferred partner for manager evaluation and due diligence, Great Gray aims to develop a suite of asset-class-specific collective investment trusts (CITs) covering private equity, private credit, and private real assets. This strategic move targets the massive $13.8 trillion US defined contribution market, seeking to provide plan sponsors and advisors with professionally managed, diversified exposure to non-traditional assets through regulated, fiduciary-led structures designed for long-term participant outcomes.
Great Gray and iCapital CIT Development Strategy
The partnership focuses on building a specialized infrastructure to deliver private markets access via the Collective Investment Trust (CIT) structure. Great Gray will act as the trustee, maintaining ultimate fiduciary authority and overseeing the servicing of these new funds. This initiative is intended to extend Great Gray’s existing flexPATH capabilities, a multi-manager glidepath framework that managed more than $130 billion in assets as of June 30, 2026. To facilitate this expansion, iCapital will provide the technical and analytical heavy lifting, including private markets due diligence, manager selection recommendations, portfolio construction, and liquidity management.
The companies are positioning these solutions to address the evolving requirements of defined contribution plans, where the conversation has shifted from whether alternatives belong in retirement portfolios to how they can be implemented responsibly. The goal is to create purpose-built solutions that support the governance and fiduciary standards essential to DC plans. By leveraging iCapital’s investment lifecycle management and Great Gray’s institutional distribution infrastructure, the collaboration seeks to offer scalable, professionally managed access to private equity, credit, and real assets. This approach aims to provide retirement plan sponsors with the flexibility to incorporate private market exposure without compromising the regulatory oversight required for workplace retirement savings.
Capturing the $13.8 Trillion Defined Contribution Market
The motivation behind this collaboration is rooted in the massive scale of the US retirement landscape. With more than $13.8 trillion in defined contribution assets in the United States at the end of the first quarter of 2026, the sector represents a primary vehicle for long-term wealth creation. As a growing portion of global economic growth and innovation shifts toward private markets, there is increasing pressure to provide retirement investors with access to both public and private opportunities. However, private markets investing within DC plans is still considered to be in its formative stages, requiring significant advancements in operational infrastructure and fiduciary guidance.
Great Gray, which held $371.8 billion in fund assets as of June 30, 2026, is leveraging this partnership to meet that demand. iCapital brings a significant global footprint to the arrangement, servicing $1.2 trillion of assets globally, including $327 billion in alternative platform assets. By combining iCapital’s technology-driven due diligence with Great Gray’s fiduciary expertise, the two firms are attempting to build the foundational architecture for the next generation of retirement investing. This move signals an effort to institutionalize private market access for the mass-market retirement participant, moving beyond high-net-worth silos into the broader workplace retirement ecosystem.
Key Takeaways
- Great Gray and iCapital are partnering to develop private equity, private credit, and private real asset CITs for defined contribution plans.
- Great Gray will maintain ultimate fiduciary authority and trustee responsibilities, while iCapital provides due diligence, manager evaluation, and portfolio construction.
- The initiative targets a US defined contribution market that held over $13.8 trillion in assets as of Q1 2026.
FinanceInsyte's Take
In our view, this partnership represents a calculated attempt to institutionalize private market access within the highly regulated and risk-averse defined contribution ecosystem. By utilizing the Collective Investment Trust (CIT) structure, Great Gray is attempting to bypass some of the complexities of individual account access while maintaining the fiduciary rigor that plan sponsors demand. This is not merely a product expansion; it is a strategic play to capture a slice of the $13.8 trillion DC market by solving the "access and governance" problem. iCapital’s involvement suggests that the technical barriers to private market integration—specifically liquidity management and manager due diligence—are being addressed through specialized fintech partnerships rather than internal development. If successful, this model could set a standard for how alternative assets are scaled for the mass-market retirement investor.
Questions & Answers
How will fiduciary responsibility be managed in these new private market CITs?
Great Gray Trust Company will serve as the trustee and maintain ultimate fiduciary authority over the investments, while also overseeing the servicing of the funds. iCapital will act as a partner providing recommendations on manager selection and allocation design.
Which specific private market asset classes are being targeted for development?
The collaboration aims to develop a suite of asset-class-specific CITs that include private equity, private credit, and private real assets.
What role does iCapital's technology play in this partnership?
iCapital will provide the underlying technical capabilities for private markets due diligence, manager evaluation, portfolio construction, and investment lifecycle management, including liquidity management and education for plan sponsors and advisors.
How does this integration affect Great Gray's existing product framework?
The partnership is intended to extend Great Gray’s flexPATH capabilities, which is a multi-manager, specialized glidepath framework that reported more than $130 billion in assets as of June 30, 2026.
Source: Businesswire
