Private equity's next step into 401(k)s

""I'm surprised by how neutral the rule was, when you think about the massive amount of lobbying there's been around it. It doesn't say certain assets are good or bad. Instead, it really focuses on making a rules-based framework instead of a litigation-based one.""

""Expect a lot of public comment, particularly from those who fear this expansion could expose retirement savings to higher risks.""

""This effort springs not only from President Trump's executive order last summer, but also from his broader belief that Americans will benefit from expanded access to, and participation in, capital markets.""

""The key differentiator on 'prudence' may be those 401(k) plan managers who tip-toe into privates, most likely via target-date funds, versus those who dive in headfirst.""

The final rule for 401(k) investments focuses on a rules-based framework rather than litigation, avoiding claims about the benefits of private equity or crypto. The term 'prudent' is frequently mentioned, indicating a cautious approach. Public comments are expected, especially from those concerned about potential risks. The rule aligns with President Trump's belief in expanding access to capital markets. Private equity is actively marketing to individuals, anticipating demand once the rule is finalized, with varying approaches among 401(k) managers regarding private investments.

Read at Axios