News Archive

"Industry experts say 2026 will be defined by policy momentum and plan sponsor caution over alternative assets in defined contribution plans.... Advisers say client inquiries are rising, and the industry is building the infrastructure to make private equity, private credit and real assets work inside default solutions, likely as part of target-date funds, managed accounts or other professionally managed offerings."  MORE >>

"Litigation reform and the Supreme Court's Cornell decision ... Risk transfer litigation ... Alternative assets Executive Order.... Proxy advisory firm Executive Order.... DOL intends to revise ESG regulation.... Aronowitz confirmed as EBSA head ... DOL advisory opinion on lifetime income QDIA.... DOL 'non-enforcement' policy for transfers of small retirement benefits to state unclaimed property funds.... DOL files amicus briefs requesting Supreme Court review of two key ERISA fiduciary decisions and supporting sponsor fiduciaries.... Forfeiture litigation."  MORE >>

"This [article] provides an overview of President Trump's recent Executive Order directing regulatory agencies to take action to enhance 401(k) plan access to such strategies, and continues by summarizing some prior history, moves on to outline concerns of plan fiduciaries and then offers some of the reasons proponents and opponents have concerning alternative assets in 401(k) plans."  MORE >>

11 pages. "[A] recent executive action from the White House has signaled a shift toward a more favorable regulatory environment for Investment Solutions that incorporate alternative investments. This article examines the evolving regulatory landscape in this area and discusses the key considerations for Plan fiduciaries who are interested in giving their Plan participants access to alternative investments through the Plan's Investment Solutions."  MORE >>

"In 2025, the consulting industry has quietly transformed into the single most important distribution channel for private equity. This shift cuts across every ownership model ... [T]he economic incentives all point in the same direction: Push pensions and retirement plans into higher-fee private equity and private credit -- regardless of long-term risk to beneficiaries."  MORE >>

"For employers, the impact of these changes is twofold. First, the employer must keep their plan in compliance—failure to do so could result in regulatory scrutiny, penalties, and fiduciary exposure. Second, the employer has the opportunity to enhance the competitiveness of their retirement benefits program, positioning its business as an employer of choice."  MORE >>

"Employers in the United States saw legislative, regulatory, and judicial developments in the benefits space in 2025, all of which should inform plan sponsor and fiduciary decisions in 2026."  MORE >>

"[DOL's EBSA] returned from the longest government shutdown to find that the February deadline set by [EO 14330] ... calling on Labor to consider writing new guidance, is suddenly a month and a half closer.... In addition to the types of assets typically classified as 'alternative assets' ... the executive order also included lifetime retirement income. This ... could mean that EBSA will consider longstanding industry hopes for broader guidance, potentially regulations, permitting 401(k) plans to use defaults to spur takeup of retirement income."  MORE >>

"Many pension funds, endowments and sovereign wealth funds that are longstanding investors in private funds have seen the benefits of diversification and have also seen these investments contribute to their return profiles. Commissioner Uyeda's speech takes the position that retail investors should be able to share in this growth opportunity as well, but currently have limited opportunities for participation. Allowing retail investors to enter the private markets through 401(k) plans would significantly increase ease of access."  MORE >>

"Though the 2nd Circuit found that the plaintiffs had standing to sue and acknowledged that private assets had more risk, it also determined that the investment did not breach fiduciary duty under [ERISA]." [Carlisle v. The Board of Trustees of The American Federation of The New York State Teamsters Conference Pension and Retirement Fund, No. 25-0511 (2d Cir. Nov. 21, 2025; unpub.)]  MORE >>

"Private equity firms and other alternative asset managers ... are reshaping the once-staid world of life insurance.... Many are shifting liabilities to offshore affiliates subject to less detailed disclosure requirements than in the US. Insurers and those offshore entities are also pursuing higher returns with more sophisticated and potentially less liquid investments ... [P]rivate equity-affiliated life insurers are already shepherding retirement savings into those same opaque markets -- including for people who say they don't want that."  MORE >>

"[The] study took a large number of real-life investors from Morningstar's Retirement Manager database and ran them through a simulated retirement experience, including factors such as company matches, contribution limits, and most importantly, Social Security payments. In all cases, ... the presence of at least one private markets investment made at least a small contribution to the investor's retirement income. Notably, [there were] no outcomes in which the inclusion of semiliquid vehicles resulted in worse outcomes."  MORE >>

"Most adults do not think it's important to have the ability to invest in private market investments (61%) ... within their workplace retirement savings account.... Interest in investing in private market investments declines sharply when people learn about fees, liquidity, transparency and risk -- three in five are not at all interested, and another quarter only slightly interested.... Most Americans are uncomfortable with being automatically enrolled in funds in their workplace retirement savings accounts that include private market investments (68%) ... This resistance is particularly strong among older adults."  MORE >>

"According to recent data, the top 10 companies in the S&P 500 now account for nearly 40% of that index's total market capitalization. That level of concentration means that even broadly diversified index funds may be more exposed to sector-specific risks than many investors realize. In such an environment, the case for expanding the investment universe to include exposure to alternative investments becomes even more compelling."  MORE >>

"Unlike publicly traded funds, data about alternative investment funds is not always readily available nor easy to interpret.... Financial advisors can help retirement plan participants navigate the brave new world of customized alternatives by doing a deep dive into what's available and how they compare with traditional bonds, cash, and stock. This is easier said than done. New products won't have a long track record. Performance metrics will differ."  MORE >>

"This report expands and fully develops the legal, economic, regulatory, and fiduciary basis demonstrating that any allocation to Private Equity (PE) or Private Credit (PC) within a 401(k) Target Date Fund (TDF) -- including allocations as small as 1-10% -- renders the entire TDF a prohibited transaction under ERISA Sections 406(a) and 406(b)."  MORE >>

"Applicable law already clarifies when a plan fiduciary can and cannot offer alternative investment choices to participants in 401(k) plans.... This suggests that the agenda pursued by at least some advocates of Executive Order 14330 is not the clarification of applicable law. Rather, these proponents seek ... to actively encourage 401(k) arrangements to offer to plan participants alternative investments, most prominently private equity.... [ERISA's] fact-based protective standards should not be attenuated to promote any industry's products, whether those products are ESG assets or alternative investments."  MORE >>

"Private equity firms are seeking a new legal definition of an ESOP, a new structure of tax benefits only they can receive, and broad exemptions from five decades of employee protections embedded in [ERISA].... [S]ober analysis of their public assertions and privately shared plans surfaces tremendous problems for the future of existing, and not yet formed, ESOP companies."  MORE >>

"Recent regulatory, judicial, and executive developments have reopened the conversation around whether -- and how -- plan sponsors can prudently offer alternative investments in participant-directed defined contribution retirement plans. This article synthesizes the key takeaways from the Ninth Circuit's Intel decision, the Trump Administration's rescission of the ... [DOL's] 2021 cautionary guidance, and President Trump's recent Executive Order aimed at 'democratizing' access to private equity and other alternatives in retirement plans."  MORE >>

"Private equity funds can now explore new distribution channels through retirement plans. This includes launching collective investment trusts (CITs), target date funds and managed accounts that incorporate PE exposure. Fund managers have the opportunity to design products tailored for long-term retirement investing, potentially unlocking a vast pool of capital from defined contribution plans."  MORE >>

"Private equity's influence on service sectors ... has revealed a troubling pattern: quality can suffer when profit extraction takes precedence.... [P]rivate equity (PE)-backed roll-ups and shifting policy stances are changing how retirement plans are advised and constructed. Fiduciaries must scrutinize ownership structures, compensation models, and product incentives or risk exposing participants to degraded outcomes."  MORE >>

"Private equity funds are fundamentally different from mutual funds or ETFs, which have daily liquidity. PE funds are illiquid -- typically locking up capital for 5-10 years. Their valuations are based on models, not transparent market pricing. Their fees can be five to 10 times higher than traditional index funds. The standard for most models is the '2 and 20' model: 2% management fee and 20% of the profits, which is much higher than your typical index fund."  MORE >>

"Plaintiffs who have lost at both the district and appellate court level are asking the nation’s highest court to weigh in on a suit involving alternative investments — more specifically the “speculative” nature of a custom target-date fund invested in hedge funds and private equity." [Anderson v. Intel Corp. Inv. Policy Comm., No. 22-16268 (9th Cir. May 22, 2025; cert. pet. filed Oct. 20, 2025 No. 25-498)]   MORE >>

"The court held that the private equity fund was under 'common control' with the portfolio companies because it owned a 95% interest in them, and that the fund was a 'trade or business' under the standard set forth in Sun Capital I as a result of it actively managing the portfolio companies. The court declined, however, to hold the private equity fund's general partner or management company liable, concluding that under the standard set forth in Sun Capital II, they did not comprise a partnership-in-fact with the private equity fund or the withdrawing employers such that they could be deemed part of their controlled group." [Longroad Asset Management LLC v. Boilermaker-Blacksmith National Pension Trust, No. 23-0738 (W.D. Mo. Aug. 19, 2025)]  MORE >>

"Private equity (PE) and other alternative investment strategies are too complex, illiquid, and risky for casual investors. That's the conventional wisdom used to explain why these types of investments are not offered to working Americans in their 401(k) and 457 retirement plans. But the broader democratization of private market investments and innovations in wealth management suggest we should now take a closer look at whether or not it makes sense for American workers and retirees to access these asset classes if they choose."  MORE >>