The first Trump administration opened the door to allow private equity into workplace retirement plans. Now, private equity firms are working to play a bigger role in workers’ portfolios, which experts say has potential risks and rewards for investors.
“It’s a train that’s already been gearing up, and folks are starting to hop on,” said Jonathan Epstein, president of Defined Contribution Alternatives Association, an industry group that advocates for incorporating non-traditional investments into employer-sponsored retirement plans.
Private equity is part of a broad category of alternative investments can include real estate funds, credit and equity in private, not publicly-traded, firms. Pension funds, insurance companies, sovereign wealth funds and high-net-worth individuals are traditional investors in these private markets.
