Trump to expand 401(k) access to private equity under new executive order

U.S. President Donald Trump is expected to sign an executive order aimed at expanding access to private-market investments through 401(k) retirement plans, according to a report by the Wall Street Journal.

The upcoming order will instruct the Department of Labor and the Securities and Exchange Commission to issue guidance that enables plan sponsors to include private assets, such as private equity, real estate, venture capital, and hedge funds, within defined contribution retirement plans.

The move could significantly broaden investor access to alternative assets, which have traditionally been limited to institutional and accredited investors due to their illiquidity and complex risk profiles.

The White House declined to comment on the proposal. However, the initiative was welcomed by industry participants. Bryan Corbett, president and CEO of the Managed Funds Association, stated that the order “will provide more Americans with the diversification and investment options needed to build wealth and save for successful retirement.”

Private-market investments are not traded on public exchanges and have historically offered higher return potential in exchange for longer holding periods and higher risk. The reform comes amid growing industry interest in expanding the role of alternatives in retail and retirement portfolios.

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