Opening the $9 Trillion US Retirement Market to Private Equity

The US administration is considering an executive order that would open up U.S. 401(k) retirement plans—currently holding nearly $9 trillion—to private equity investments. This move would direct federal agencies to assess the feasibility of allowing retirement savers access to funds managed by private capital giants like Blackstone, KKR, and Apollo. While such investments could offer higher long-term returns, they also come with increased risks including higher fees, reduced liquidity, and less transparency. The proposal follows earlier guidance, which saw limited adoption due to fiduciary liability concerns. If implemented, the order could unlock massive inflows for private equity firms and reshape the retirement investment landscape in the U.S.

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