Private equity wants a piece of your 401(k) — and hopes Trump can make it happen

Published On Jan 9, 2025, 4:00 AM

Private equity firms are lobbying for access to 401(k) funds under the potential second Trump administration. They argue this would allow everyday investors to diversify their portfolios with private investments such as real estate, private credit, and leveraged buyouts. Industry leaders assert that increased access could help mitigate risks associated with a concentrated stock market heavily weighted towards tech. However, there are concerns regarding the liquidity and fees associated with these private equity investments.

Stock Forecasts

APO

Positive

Given the potential regulatory changes under a pro-private equity administration, firms like Apollo, Blackstone, and KKR may uncover new avenues for growth through retail investment channels. This could lead to a positive outlook on their stock prices as they could tap into large untapped 401(k) funds.

BX

Positive

Blackstone's strong market presence may benefit from the anticipated access to private equity for 401(k) plans. Should these changes occur, it is expected that Blackstone's stock could rise as they gain new inflows from retirement accounts.

KKR

Positive

KKR is positioned to take advantage of the private equity push into 401(k) accounts, enhancing its business model and possibly leading to stock appreciation as retail investors seek alternative investment strategies.

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