BlackRock (BLK) said Thursday it has been selected by Great Gray Trust to provide retirement funds that allocate across public and private markets, including both private equity and private credit exposures.

BlackRock said its index equity, index fixed income, and private equity offerings have also been selected to underpin the fund.

Wilshire Advisors will oversee the strategy, including liquidity management, the company said.

BlackRock also said it recently published a research paper arguing that incorporating purpose-built private market solutions into target-date funds can add 50 basis points to portfolio returns annually, or about 15% more over 40 years.

"BlackRock has been working with institutional investors and financial advisors to help them access private markets for years and we continue to evolve our platform in response to our clients' changing needs," said Jaime Magyera, co-head of BlackRock's US wealth advisory business.

BlackRock said it believes the portfolio of the future will consist of 50% public equities, 30% public fixed income, and 20% private markets.