Contemplating the Future of Private Markets and Retirement

ICI’s Chief Government Affairs and Public Policy Officer Tom Quaadman in conversation with Groom Law Group Principal Kevin Walsh at The Future of Private Markets & Retirement event.

Policymakers in the United States are tackling the challenge of how to provide expanded investment opportunities for retirement savers who participate in 401(k) plans and other types of defined contribution (DC) plans. President Trump’s August 2025 executive order (EO) encouraging increased access to private market investments for 401(k) investors is a positive step in this direction, and the asset management industry stands ready to help. 

ICI recently partnered with the Defined Contribution Alternatives Association (DCALTA) to convene The Future of Private Markets & Retirement, an event that brought together leading experts to explore the legal, operational, and policy considerations relevant to expanding private market assets access for retail investors through DC plans. Hosted at Invesco’s Atlanta offices, ICI staff and other industry experts discussed the evolving role of private markets in retirement plans. Panelists at the event agreed that there is an opportunity for private market assets to improve retirement outcomes for DC plan investors. This opportunity has come about due to a confluence of factors:

• As capital markets shift toward private assets, there are fewer public market investment opportunities.
• Industry partnerships are offering more products specifically designed for DC plans.
• The EO has provided a strong impetus for regulators to respond to the asset management and retirement industries’ desire for clarifying guidance.

Attendees mingling at The Future of Private Markets & Retirement event in Atlanta.

Remaining Hurdles

Operational Challenges

While the EO has paved the way for greater private markets access, ICI Senior Director of Operations and Distribution John Randall observed that there is still a lot to be done operationally to ensure effective implementation. Randall said an important part of driving greater adoption of private market assets by DC plans is making sure that back offices have the tools they need to implement these investments. Strengthening this back-office infrastructure is crucial to maintaining appropriate liquidity and valuation frameworks.

Investor Education

Panelists agreed that because private market assets are still new to most retail investors, there is a steep learning curve to their familiarity with these products. Greater investor education is needed, especially with regard to fees and liquidity. ICI Associate General Counsel for Financial Regulation Kevin Ercoline noted that in the advisory space, private credit registered funds are often sold as an allocation in investors’ overall portfolio with yield (net of fees) presented to facilitate comparison with other fixed income investments. Similar education and information in the DC space could help address potential investor confusion regarding fees and liquidity.

Leveraging Existing Products

Outside of the DC space, ICI has been a leader in advocating for policy changes that recognize the built-in protections provided by funds subject to the Investment Company Act of 1940 (’40 Act) as a way to expand retail investor access to private markets. These reforms could make it easier for regulated ’40 Act vehicles to facilitate access to private market investments in DC plans, including as portfolio investments of collective investment funds on DC plan investment menus. Reforms that would enhance the use of ’40 Act vehicles both in DC plans and for retail investors more broadly include:

• The SEC providing more flexible co-investment and fund-of-fund relief that would reduce barriers to accessing private market investment strategies for ’40 Act funds
• Congress adopting legislation, such as the Increasing Investors Opportunities Act, that would codify recent SEC actions, making it easier for retail CEFs to invest in private funds
• The SEC ending the annual meeting requirement for listed CEFs, which would help stop activist takeovers of these products and encourage capital formation in exchange-listed private access vehicles that are readily accessible to retail investors

The principles underlying these reforms, in addition to the ’40 Act protections generally, will help provide retail investors with valuable guardrails both inside and outside of DC plans. ICI thanks our partners at DCALTA, Invesco, and many others across the industry for their commitment to providing more opportunities to retirement savers. We will continue to convene leading experts and influential voices through the implementation of the EO and beyond.