Overview

• President Trump’s Aug. 7 executive order seeks to widen 401(k) menus to include private markets, real estate, digital assets, commodities, infrastructure, and lifetime income strategies.
• The Department of Labor on Aug. 12 rescinded its 2021 warning on private equity in defined-contribution plans and launched a 180-day review to outline guidance and potential safe harbors for plan fiduciaries.
• The SEC issued guidance (ADI 2025-16) ending the longstanding 15% cap on private investments in certain registered closed-end funds, a step expected to ease packaging alternatives for retirement platforms.
• Financial advisors caution that alternatives are illiquid, less transparent, and higher fee, often better suited as small allocations within professionally managed vehicles rather than standalone picks for typical savers.
• Asset managers and private-market firms are positioning for a potential share of roughly $12 trillion in defined-contribution assets, with moves such as KKR’s revised terms to accommodate growing retail capital, while ERISA litigation risk remains a central constraint.