Administration Announces Long-Awaited Order on Alternative Assets in 401(k) Plans

On August 7, 2025, President Trump issued an executive order, titled “Democratizing Access to Alternative Assets for 401(k) Investors,” that is intended to increase access for 401(k) plan investors to “alternative assets,” including private equity, private credit, real estate, and digital assets. The executive order directs the U.S. Department of Labor (DOL) and the U.S. Securities and Exchange Commission (SEC) to propose reductions in any regulatory burdens and provide guidance to fiduciaries evaluating whether to make alternative assets available to 401(k) plan investors.

Elements of the financial services industry representing private equity, private credit, real estate, and digital assets have been advocating for government action to facilitate increased access to the 401(k) plan marketplace. Although the Employee Retirement Income Security Act (ERISA) does not ban any asset class and applies the same fiduciary standard to all investments, the DOL has generally discouraged alternative assets in 401(k) plans, causing many plan fiduciaries to harbor concerns that inclusion of alternative assets in their fund line-up would make them potential litigation targets to the plaintiffs’ bar. Accordingly, this has had a chilling effect on fiduciaries who considered adding alternative assets to 401(k) plans. The private funds industry could see significant growth opportunities by accessing the 401(k) plan marketplace, depending on how quickly and aggressively the DOL and the SEC move on this issue, particularly by addressing the application of ERISA’s fiduciary standards to alternative investments in a manner that would reduce the risk of fiduciary litigation. We will continue to monitor the status of this executive order and any subsequent agency action.

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