President Donald Trump is preparing to sign an executive order that would direct the Labor Department and the Securities and Exchange Commission to issue guidance on including private-market investments in 401(k) retirement plans, according to the Wall Street Journal. The order, still under review, could allow retirement plans broader access to private equity and private credit assets, enabling firms like Apollo Global Management and Blackstone to reach new pools of capital. While some plan sponsors already offer limited access to such investments, many remain hesitant due to concerns about higher fees and potential legal risk. Industry executives suggest that further action, including congressional involvement, may be necessary to reassure employers and encourage broader adoption.
Private asset managers have advocated for regulatory changes to make their products more accessible in retirement portfolios. Some firms, including Apollo and State Street, have already launched target-date funds with private-market components. However, the idea has faced criticism. Senator Elizabeth Warren has questioned Empower, a retirement plan provider, for offering private equity options to employees. In response, Empower CEO Ed Murphy defended the decision, saying it is “similar to the introduction of 401(k) plans decades ago” and emphasized the need to expand access to private markets. The administration’s move reflects growing interest in private-market assets, particularly among high-net-worth investors.
