The next phase in small- to medium-sized business 401(k) provider Human Interest’s growth will be financed in part by an infusion of cash from investment giant BlackRock—a signal that part-time workers and SMBs will play an increasingly important role in solving America’s retirement crisis.
The two firms announced today they will join efforts to expand access to retirement plans to small- and medium-sized businesses across the United States. BlackRock Inc. is making a minority investment and leading a financing round to support the next phase of Human Interest’s growth. Human Interest has secured approximately $500 million in funding to date, according to today’s announcement.
“BlackRock has an amazing team focused on providing high-quality retirement saving and investment options. We are excited to work with BlackRock to find ways to bring retirement within reach of millions of additional workers in the coming years,” said Jeff Schneble, CEO of Human Interest.
According to the AARP, approximately 57 million people—nearly half of all employees ages 18-64 in the private sector—do not have access to an employer-provided pension or retirement savings plan. This lack of access skews heavily to small- and medium-sized businesses that do not offer retirement plans due to high costs, complexity, and administrative burden.
Human Interest is tackling this problem using technology to make setting up and administering a retirement plan easy and affordable for businesses of all sizes.
The San Francisco-based full-service 401(k) provider has seen over 400% growth in the number of customers and revenue since the initial closing of the company’s last announced financing in 2021. Human Interest now serves more than 12,000 customers and covers more than 200,000 plan participants, attracting customers with features like 400 integrations with payroll providers.
In December, Human Interest rolled out new partnerships with franchise networks including Neighborly, helping to reach small business workers at scale.
BlackRock’s investment will help the Human Interest continue to enhance its technology platform capabilities and mature its operational processes and infrastructure. In addition, BlackRock will share its experience and expertise to help Human Interest fulfill its mission.
“Getting people on a path to a secure retirement is core to BlackRock’s purpose, from pioneering target-date funds 30 years ago to managing retirement assets for more than 40 million Americans today. We look forward to helping Human Interest close the access gap,” said Anne Ackerley, Head of BlackRock’s Retirement Group.
SEE ALSO:
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• Just 1 in 4 Small Businesses Currently Offer a 401k
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
