President Donald Trump signed an executive order making it easier for everyday savers to invest their retirement funds in alternative assets such as private equity and real estate. This move aims to address legal concerns that have historically kept these asset managers away from defined-contribution plans.
Alternative-asset managers, which typically cater to the ultrarich, will now offer exposure to private markets through partnerships with major providers like Empower and Great Gray Trust. The industry now oversees over $33 trillion in assets.
The slowdown in capital flowing into private-market investments, which fell nearly 30% between 2021 and 2024, is attributed to concerns over returns being highly variable. Private equity investments can also be difficult to quickly convert into cash due to long-term projects lasting more than a decade.
A 1974 federal law requires employer-sponsored retirement plans to act in the best interest of workers and make diversified investments. However, this has made it challenging for ordinary Americans to invest their savings in private-market assets and cryptocurrencies, which come with greater risk, higher fees, and less transparency.
The Trump executive order could be a “total game changer” by making alternative investment options more accessible to defined-contribution plan managers, according to law professor Colleen Medill.
Source: https://www.washingtonpost.com/business/2025/08/07/trump-alternative-assets-executive-order