President
Donald Trump
is reportedly preparing to sign an
executive order
that would expand Americans’ access to
private-market investments
through their retirement accounts, particularly
401(k) plans
.
According to
The Wall Street Journal
, which cited individuals familiar with the matter, the proposed order would instruct the
Labor Department
and
Securities and Exchange Commission (SEC)
to issue
new regulatory guidance
for employers and plan administrators. The guidance would clarify how private assets—such as
private equity
,
venture capital
,
real estate
, and
hedge funds
—could be included in 401(k) investment options.
Sources noted that while the order is still under review, the administration is expected to finalize and announce the plan in the coming weeks.
What Are Private-Market Investments?
Unlike traditional assets such as
publicly traded stocks and bonds
, private-market investments are not listed on public exchanges. They tend to offer
higher risk
but also the potential for
greater returns
, making them appealing to investors seeking diversification.
Industry Reaction
Bryan Corbett
, president and CEO of the Managed Funds Association (MFA), which represents firms in the alternative asset space, welcomed the anticipated move. Speaking to
Reuters
, Corbett said:
“Expanding access to alternative investments in 401(k) retirement plans will provide more Americans with the diversification and investment options needed to build wealth and save for a successful retirement.”
Policy Reversal from Biden-Era Guidance
During Trump’s first term, the
Labor Department
issued guidance in 2020 stating that
private equity could be responsibly included
in certain retirement investment vehicles—like
target-date funds
—provided fiduciaries properly assess risk and fees.
That position was later
reversed by the Biden administration
in 2021, which said it would
not endorse or recommend
including such private assets in retirement plans due to concerns about complexity and transparency.
Financial Industry Preparing for Shift
In anticipation of Trump’s expected order, several asset managers have already launched or announced products aimed at retirement plans that include private-market components:
-
Apollo Global Management
and
State Street
have developed a target-date fund with exposure to private assets. -
Blue Owl Capital
announced a partnership with
Voya Financial
to deliver similar offerings.
Why It Matters
If enacted, Trump’s executive order could
reshape how Americans invest for retirement
,
potentially unlocking
trillions of dollars
in 401(k) funds for
alternative investment strategies
. Supporters argue it would offer greater diversification and return potential. Critics, however, may raise concerns about
transparency, fees, and risk exposure
for everyday investors.
The move comes as part of a broader economic push from Trump allies to
revise retirement and digital asset policies
, including reversing Biden-era ESG rules and promoting U.S. leadership in alternative finance sectors.
