• 401(k) investment menus may soon include private equity, credit, real estate, infrastructure and more.
• Expanded access may open a new distribution channel for alternative asset managers such as Blackstone, KKR, Apollo and Brookfield.
• With institutional allocations to private markets nearing limits, retirement plans may be the next big source of inflows.
• GPZ offers exposure to publicly traded alternative asset managers well-positioned for the potential adoption of private market strategies in retirement plans.

On August 7, 2025, President Trump signed an executive order titled “Democratizing Access to Alternative Assets for 401(k) Investors,” aiming to broaden retirement investors’ access to alternative asset classes, such as private equity and credit, real estate, digital assets, commodities, infrastructure and lifetime income strategies.

This directive mandates a 180‑day review by the Department of Labor to reexamine and potentially soften guidance under ERISA (Employee Retirement Income Security Act) that has historically discouraged fiduciaries from offering alternative-investment options in defined‑contribution retirement plans. In parallel, the Securities and Exchange Commission is asked to consider revising rules around accredited and qualified investor status to facilitate broader participation by individual retirement savers.

A 401(k) Opening for Alternative Asset Managers Growth

This executive order may prove to be a structural driver of growth for alternative asset managers that specialize in managing private equity, venture capital, private credit, infrastructure and real estate managers.

As 401(k) plans potentially expand their menus to include private market-based strategies, alternative asset managers like Blackstone, KKR, Apollo, and Brookfield—among the VanEck Alternative Asset Manager ETF’s (GPZ’s) potential holdings¹ —could be looking at a significant new source of inflows. These firms have benefited from the adoption of private market exposure across several major investor types, and the retirement segment would be yet another opportunity.

For years, institutions have increased their exposure to private markets investments. With a subdued “exit” market (e.g., fewer private market portfolio companies going public or being acquired) and institutional private market allocations pushing up against maximum allowable exposure, fundraising has been more competitive in that channel. This has led to significant efforts among alternative asset managers to penetrate the wealth management market, and 401(k) plans would present another opportunity.

GPZ provides investors with a way to tap into the growth of private markets through public equities, offering diversification and alignment with the unfolding regulatory shift, and is well-positioned to benefit from potential rises in retirement-plan adoption of such strategies.

From Policy to Practice: What’s Next?

The executive order explicitly opens the door to private market investments in 401(k)s, although actual implementation depends on forthcoming guidance from the Department of Labor and SEC. There is a lot to learn as new guidance is released from all parties involved, but industry participants have already begun efforts to capitalize on the opportunity.

Some managers are working on target‑date retirement funds that will include an allocation to private investments, and plan sponsors are considering how and when to allow for private market exposure on their platforms. Once more clarity is available, developments could happen far more rapidly.

Many questions do remain unanswered, particularly related to suitability of these investments in light of the typically elevated cost associated, transparency considerations, and operational implementation timelines. However, many expect the market to innovate around these hurdles and tap into the incredible potential that lay ahead.

Tapping the Private Market Growth Opportunity

The executive order marks a watershed moment and signals a potential paradigm shift in 401(k) design. Given its focus on the largest publicly listed alternative asset managers, GPZ stands at the intersection of this structural change. The next 6 to 12 months will be pivotal in uncovering whether this regulatory signal translates into real flows—and whether GPZ can ride the surge.

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