Trump Reportedly Weighing Executive Order to Expand 401(k) Access to Private Markets

President Donald Trump is reportedly preparing to sign an executive order that would allow retirement savers broader access to private-market investments through their 401(k) plans—a move that could reshape how Americans build wealth for retirement.

According to The Wall Street Journal, the proposed order would instruct the Department of Labor and the Securities and Exchange Commission to issue new regulatory guidance for employers and plan administrators, paving the way for private assets like private equity, hedge funds, and venture capital to be included in 401(k) offerings. These investments, not traded on public exchanges, are known for their potential to deliver higher returns—albeit with greater risk and less transparency than traditional public stocks and bonds.

While the final details of the executive order are still under review, the initiative has already sparked movement in the financial industry. Firms such as Apollo Global Management and State Street have launched new target-date funds that include private-market components, while Blue Owl Capital has signaled similar intentions. Industry groups, like the Managed Funds Association (MFA), welcomed the news. Bryan Corbett, MFA president and CEO, said expanding access to alternative investments “will provide more Americans with the diversification and investment options needed to build wealth and save for a successful retirement.”

This wouldn't be the first time the idea gained traction. During Trump’s first term, the Department of Labor issued a letter in 2020 supporting the cautious inclusion of private equity in retirement products like target-date funds. That guidance was later rolled back by the Biden administration in 2021, which said it did “not endorse or recommend such investments,” citing concerns over risk, cost, and complexity.

If enacted, Trump’s new directive could mark a policy reversal and a broader shift toward embracing alternative assets in mainstream retirement strategies. Financial firms are already gearing up for what could be a new chapter in retirement planning—one where the private market plays a much larger role in the portfolios of everyday Americans.

‍