Catenaa, Thursday, August 07, 2025- US President Donald Trump will sign an executive order on Thursday that aims to allow private equity, real estate, cryptocurrency and other alternative assets in 401(k)s.
The executive order will direct the US Secretary of Labor to review fiduciary guidance on private market investments in 401(k) and other defined-contribution plans that are governed by the Employee Retirement Income Security Act of 1974 (ERISA).
Such a move, if implemented, would be a boon for big alternative asset managers like Blackstone, KKR and Apollo Global Management by opening the $12 trillion market for retirement funds known as defined contribution plans to their investments.
However, critics say it could add too much risk to retirement accounts like 401(k)s.
Trump will direct Labour Secretary Lori Chavez-DeRemer to work with counterparts at the Treasury Department, Securities and Exchange Commission (SEC), and other federal regulators to determine whether rule changes should be made to assist in the effort.
Private equity stocks such as Apollo Group and KKR were slightly higher on Thursday, while Blackstone was up by 1.2%, following the news.
Private market assets have traditionally been excluded from 401(k)s, even as they’ve been embraced by pension funds and university endowments, because their high fees, lack of transparency and longer lockup periods make them riskier investments.
In June, BlackRock, the world’s largest asset manager, said it’s launching a 401(k) target date fund in the first half of 2026 that will include a 5% to 20% allocation to private investments.
In May, Empower, the country’s second-largest retirement plan provider, said it’s joining asset managers such as Apollo to start allowing private assets in some accounts later this year.
