Possible Inclusion of Private Market Investments in 401(k) Plans
According to Deutsche Bank, there’s a chance that private market investments could soon be part of 401(k) retirement plans, with several asset managers gearing up for this shift. Recent reports from the Wall Street Journal suggest that the Trump administration is developing an executive order aimed at facilitating access to these types of investments in 401(k) plans. Sources indicated they would seek assistance from the Department of Labor and the Securities and Exchange Commission to help guide plan managers and employers on integrating these assets into retirement options.
Asset managers are already starting to explore these opportunities. For instance, in May, Empower announced it would offer private equity, private credit, and private real estate through collective mutual funds—essentially pooled funds available for individual investors within retirement plans. But as the situation evolves, it’s clear some companies are in more advantageous positions than others.
BlackRock’s finance director, Martin Small, mentioned during a revenue call that the firm aims to introduce its Lifepath Target-Date Fund in 2026, which will incorporate private assets. However, don’t expect companies to quickly rush into these private investments. Goldman Sachs analyst Alexander Blostein noted that while the market presents a revenue opportunity between $3.8 billion and $12.3 billion for private market managers in the coming years, the process to gain access may be slow.
Several firms are eyeing the retirement plan space. BlackRock has seen its stock rise about 8% in 2025, reflecting its strong brand recognition in the private market segment, along with its extensive investment strategy. Additionally, Blackstone is concentrating on expanding its range of retail products and has recently teamed up with Wellington and Vanguard to create offerings that span both private and public markets for retail investors.
On a related note, Apollo Global Management is targeting the 401(k) market, aiming to develop public/private products for retailers. They’ve recently introduced single-rated private credit ETFs, with consensus price expectations surpassing 5% in 2025.
