Trump administration weighs opening $9tn US retirement market to private equity
Donald Trump’s administration is considering an executive order that would allow private equity firms to access the nearly $9tn US retirement savings market through 401(k) plans.
If implemented, the order would direct agencies including the Department of Labor, the Treasury, and the SEC to study the inclusion of private funds in retirement plans.
The move could unlock vast new capital for private equity firms such as Blackstone, KKR, and Apollo, whose executives estimate hundreds of billions in potential inflows.
The concept was first introduced during Trump’s initial term, but uptake was slow due to legal liability fears among retirement plan managers. A new directive could strengthen legal safeguards and remove barriers that have deterred institutional adoption to date.
Private equity firms have recently advanced efforts to gain traction in the retirement space. Blackstone, Apollo, and KKR have established partnerships with major asset managers including Vanguard and State Street. Empower, one of the largest 401(k) sponsors in the US, recently agreed to offer access to funds managed by Apollo, Partners Group, and Goldman Sachs.
Regulators have begun to show greater openness. SEC Chair Paul Atkins said the commission may revise the 15% cap on private assets in registered funds, aiming to balance investor protection with broader access to private capital strategies.
While some industry critics cite risks such as lower liquidity, high fees, and opaque valuations, private equity executives argue the long-term nature of private investments aligns with the decades-long horizon of retirement savers.
A final decision on the executive order remains pending, but any regulatory shift could mark a landmark moment in expanding private equity’s reach into one of the largest pools of global capital.