Private market assets are on track to become accessible in Americans’ retirement accounts, with major asset managers and plan sponsors already creating products for this purpose. Apollo Global Management CEO Marc Rowan recently stated that he expects private markets to be sold into the 401(k) system at some point.
In 2020, the Department of Labor issued an information letter indicating that private market exposure in 401(k) plans could be permissible under certain conditions. This guidance was later reaffirmed by the Biden administration. Since then, asset managers like BlackRock and Empower have created products for retirement vehicles, with Americans collectively holding over $8.7 trillion in assets.
The trend is expected to expand as larger plan sponsors with internal capabilities to vet private investments move faster to integrate them into their 401(k) plans. Proponents argue that the investable universe has shrunk over the last three decades, while the dominance of large public companies grows.
However, critics worry about the risks associated with private investments, including lack of transparency and higher fees. They point out that private markets are less liquid and may not be suitable for plan sponsors to do appropriate due diligence.
Experts predict that private assets will give investors exposure to a market that looks different from what it had in the past, but this comes with potential risks and costs. As Apollo’s Rowan noted, “Being private does not make it better. It makes it less liquid.” The debate surrounding private markets in 401(k) plans continues, with some arguing for their benefits while others express concerns about the risks involved.
Source: https://www.cnbc.com/2025/07/13/coming-to-a-401k-near-you-private-market-assets.html