August 7, 2025 • 15 mins
US President Donald Trump just signed an executive order that aims to allow private equity into a $12 trillion piece of America’s retirement market — 401(k)s.
On today’s Big Take podcast, private equity reporter Allison McNeely joins host Sarah Holder to explain what this could mean for the average American’s retirement savings.
Read more: Trump Signs Order Easing Path for Private Assets in 401(k)s
See omnystudio.com/listener for privacy information.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:08):
One day in January, less than a week before President
Trump's second inauguration, a group of more than thirty money
managers hopped onto a Zoom call. It included representatives from Blackstone,
Ubs and other big Wall Street firms.
Speaker 1 (00:22):
It was sort of a meeting of like minded individuals
to strategize about. I guess goals would be a way
of putting it that they have in common.
Speaker 2 (00:30):
Alison McNeely covers the private equity industry for Bloomberg.
Speaker 1 (00:34):
One key principle I think that folks were coalescing around
was the idea to get more private equity, private credit
hedge fund, that sort of thing into the retirement accounts
of everyday Americans.
Speaker 2 (00:47):
They wanted a piece of the four to oh one K.
Speaker 1 (00:51):
It's kind of the next gold rush.
Speaker 2 (00:53):
For a long time, private equity firms have relied on
capital from pension funds, endowments, and other kinds of professional
investors to sustain their growth. But now these firms are
looking to explore new frontiers, potentially very lucrative frontiers. There's
about twelve trillion dollars in employer sponsored accounts like four
(01:14):
oh one K plans.
Speaker 1 (01:15):
That's only expected to grow. Those funds don't generally have
private assets in them, so if they can grab even
a slice of that, that's a few trillion right there.
Speaker 2 (01:25):
And when they gathered on that pre inauguration zoom call,
the industry's biggest players agreed, now is the time to
start grabbing slices. What was the vibe like?
Speaker 1 (01:34):
The vibe was definitely optimistic. You know, there's a sense
in the industry that now is the moment to strike
four one ks and the goal of getting into four
o one k's is an extension of a broader theme
that really has been taking place for the private equity
industry for many years now. The traditional sources of capital
have been tapped out, but these private equity firms are
(01:56):
still looking for ways to grow. And so what's a
market that they haven't really tap it before regular people?
Speaker 2 (02:07):
This is the big take from Bloomberg News. I'm Sarah
Holder today on the show. President Trump has signed an
executive order allowing private equity into Americans retirement plans. What's
behind PE's play for the four to oh one K?
How likely is it to work and what would it
mean for your savings? Let's say you're an employee working
(02:33):
at a company that offers four oh one K retirement plans.
You may not know exactly what kinds of investments are
in the retirement plan you choose.
Speaker 1 (02:42):
I barely know it's in my pharaoh and K. To
be quite honest with you.
Speaker 2 (02:46):
People tend to pick from a few default, pre mixed options,
and that's what makes the job of selecting what goes
into those four oh one K offerings so important.
Speaker 1 (02:55):
They basically have a responsibility to you, me to other
employees under federal law, to essentially pick safe or responsible
investments for us to choose.
Speaker 2 (03:07):
Traditionally, that's meant a four to oh one K is
invested in a mix of stocks and bonds.
Speaker 1 (03:12):
The classic portfolio would be sixty percent stocks forty percent bonds.
A lot of people are invested in what's called a
target date fund, so basically you kind of pick the
fund with the retirement date closest to when you think
you're going to retire. I think I'm in like a
twenty fifty five fund. I'm in my late thirties, So
to give you an idea, right now, that fund is
almost entirely in stocks, and as they get closer to retirement,
(03:35):
that fund will shift into bonds because bonds are perceived
to be safer.
Speaker 2 (03:39):
But stocks and bonds aren't the only kinds of investments
a four to oh one K could include.
Speaker 1 (03:44):
There are folks who say, no, actually, like private equity
is a totally valid and legitimate option as well, that
just hasn't been offered so far. They would like to see,
essentially my twenty fifty five target date fund take a
slice out of stocks and bonds and instead put it
into private equity funds.
Speaker 2 (04:04):
Can you explain how private equity firms work and why
they aren't typically offered as an option.
Speaker 1 (04:10):
Yeah, so private equity, we're really using a simplistic term
to sort of describe the broader industry. It's about twenty
five trillion dollars in assets of private assets, so equity, debt,
real estate. Basically, they don't trade on a stock exchange.
They're sort of bought and held for the long term. Generally,
(04:32):
when you invest in a private equity fund, you're handing
over a chunk of change to that firm for ten years.
You're saying, I'm going to give you a check for
one hundred million dollars to invest in your latest fund,
and you're going to go out and buy companies, turn
them around, and then hopefully ideally sell them at a
profit sometime in the next five to ten years. In
the meantime, I don't expect to get my money back.
Speaker 2 (04:55):
Private equity firms typically make their money by buying a company,
usually with debt. They try to maximize profits, cut costs,
and eventually sell it for more than they bought it for.
This setup means private equity investments are less liquid. It's
harder for an investor to cash out if the firm
hasn't yet turned around a business or flipped it. And
(05:15):
now higher interest rates and declining asset values have meant
fewer sales, which means investors aren't getting their money back,
which chokes off that cycle of reinvestment. It's a big
motivation for this push to tap new pools of cash
like retirement savings. But for investors, being exposed to private
(05:36):
equity comes with risks.
Speaker 1 (05:38):
There's a chance it might go bankrupt. There's a chance
this turnaround planned or this sort of value creation plan
you have might not work out. That is very different
from investing in the stock of a big, publicly traded
company where you're a shareholder and your one tiny, tiny,
tiny little slice of all these other public shareholders where
you can go and log into your brokerage app and
(05:58):
buy and sell that's stock whenever you want. So they're
just sort of perceived as a higher risk, higher return investment,
and so in the past they've been restricted only to
professional investors who kind of know what they're doing, you know,
pension funds, endowments, that sort of thing.
Speaker 2 (06:13):
What about fees. Are PE fees higher than other investments?
Speaker 1 (06:17):
Yes, Private equity fees are typically what they call two
and twenty, and so that basically means that the private
equity firm takes two percent of whatever you give them
as a management fee. That's just the money they make
for managing your money. And then the twenty percent is
that they take twenty percent of any profit that they make.
Speaker 2 (06:38):
The average ETF fee is closer to point four four percent,
significantly lower than the average PE fee. These risks and
fees have so far turned off four OHEK managers. Today,
fewer than one in ten four oh one K plans
offer any kind of alternative investment, According to a survey
from the American Retirement Association, of those that do less
(07:01):
than one in four include private equity in the mix.
But private equity proponents argue these risks are worth it
for the potential rewards. Walk me through some of the
arguments that private equity managers use for including private equity
in four h and K offerings.
Speaker 1 (07:20):
Yeah, so they say they beat the S and P
five hundred, and they might have a point there. You know,
if you want to broaden your exposure away from sort
of the biggest tech stocks, away from the volatility of
public markets, they might have an argument for that.
Speaker 2 (07:34):
But there's also a counter argument, Well.
Speaker 1 (07:37):
You're going into investments that are a lot more opaque,
that are not valued on a daily basis. There's a
little bit more art as to how they're valued and
how they're traded and what they might be worth. Then
who might want to buy them from you? Because you
you know, with a private equity investment, the only way
(07:58):
you make money if you buy a compon is you
can find someone else to sell that company to. And
that is actually a challenge that we've seen the private
equity industry go through in the last couple of years.
Higher interest rates, more expensive debt has made it harder
for private equity firms to sell a lot of these
companies that they've invested in, and so there is something
(08:18):
to be said about also being able to get in
and out of you know, MetaStock, knowing exactly what it's worth,
knowing that someone will buy it from you.
Speaker 2 (08:27):
Still, people pushing to get private equity into four oh
one case say that the fact that these are longer term,
less liquid investments is actually a good thing.
Speaker 1 (08:37):
Pollo Global Management CEO Marcron is an example of this.
They're a large private equity firm. They say that actually
private assets because of the long term investment horizonment of retirement.
It's a perfect match because you don't need your money
for twenty thirty, forty years. You don't actually need to
(08:57):
be all in stocks and bonds and things that can
be sold on demand whenever you want on a daily basis.
Speaker 2 (09:04):
Right, you don't have to buy today, sell it tomorrow.
You have to buy today, sell it in thirty years
or forty years exactly.
Speaker 1 (09:09):
And by taking a smaller portion of your portfolio some
people say ten percent, some people say twenty percent. By
taking a portion of that and instead putting in a
private equity fund, that yes, is a little bit riskier
but has the potential for higher return. It's actually smart,
and if you don't do that, you're leaving money on
the table. A lot of people who are proponents of
(09:30):
putting private investments, such as private equity into furrowon keys
say the best way to do it would be as
part of a diversified portfolio like a target day fund,
and so it's basically like the asset mix would change
over time. There are some people who still say, I
don't know like that. It's still it's really difficult to
determine how like the liquidity as they call it, will
(09:53):
really work, if people will really be able to get
out of these things if they need to, if the
asset mix is really appropriate. Like these are still live
questions that people are trying to solve.
Speaker 2 (10:06):
Part of the reason we don't know the answers to
these questions yet is because private equity share of American
four oh one k's is tiny. Trump's executive order will
change that after the break the political shifts that could
help PE capture investments from regular people. Four oh one
(10:32):
k's were invented some fifty years ago to help workers
avoid paying taxes on deferred compensation that evolved into a
way for employees to save for retirement without employers having
to offer a traditional pension. The number of people enrolled
in four oh one k's and similar retirement plans has
steadily grown, and companies are required to act in their
(10:54):
employee's best interest when selecting the breakdown of their four
oh one K offerings.
Speaker 1 (10:59):
Basically, the retirement law says the fiduciar has a sort
of responsibility to pick the most prudent investment for their
plan participants. They don't really say what prudent means, and
so people have taken a really conservative interpretation of that.
Speaker 2 (11:16):
Bloomberg's Alison McNeely says that requirement is one reason many
employers have shied away from including private equity in their plans.
Speaker 1 (11:25):
There's a lawsuit that a lot of people in and
around the industry invoke, which is the Intel lawsuit. Intel
was sued about a decade ago after Intel puts some
private equity funds in some hedge funds into its Furrow
and K plan. Some of those employees sued the company.
They said, you put our plan into these private assets
(11:46):
at the time that public markets were on a tear,
and we actually missed out on the.
Speaker 2 (11:51):
Market rally, you didn't manage my money correctly by investing
in private equity.
Speaker 1 (11:56):
Yeah, and so that lawsuit really created a chilling effect
in the industry because other companies don't want to get sued,
and they just basically want to know that if they
were to allocate some of their foura on K into
private investments, that they wouldn't get sued. And also, even
(12:16):
if they do get sued and defend themselves, there's still
a lot of headline or reputational risk there that many
of these companies that are conservative by nature and want
to protect their reputations would like to avoid.
Speaker 2 (12:29):
That. Intel case over its four oh one K strategy
was eventually dismissed. The plaintiffs are trying to get that
dismissal overturned on appeal, but some employers are waiting for
a more definitive sign that exposing their employees for one
ks to private equity won't get them into trouble.
Speaker 1 (12:46):
I think a lot of corporate four oh one K
plan administrators are looking for a green light from the
government that they won't be sued if they put alternative
assets into their retirement plan. The way the law is
right now is it's kind of silent technically from a
(13:09):
legal standpoint, there's nothing preventing a company from putting private
equity in their fore own K plan, provided they've done
their due diligence and run their process to make an
appropriate investment. It's really sort of a hearts and minds
debate or argument or fight as much as anything else.
Speaker 2 (13:30):
With Trump in the White House and Republicans in control
of Congress, private equity advocates have been waiting for the
moment they get more clarity from the federal government.
Speaker 1 (13:40):
The first Trump Department of Labor did put out a
letter that says we think that private equity has a
role in for own cas. So that was a pretty
clear signal back in twenty twenty that you know, folks
could possibly go ahead with this.
Speaker 2 (13:53):
Is there evidence that employees would opt into those plans.
Speaker 1 (13:58):
I don't think there's a sense of this point that
employees are clamoring for private assets, but maybe they will
in the future.
Speaker 2 (14:06):
Right, For some people, private equity doesn't have the best reputation.
They see headlines about its negative impact on sectors like
healthcare and housing. I guess what I'm asking is, do
you get the sense that some workers would want to
avoid having their four oh one K tied up in
private equity for ethical reasons.
Speaker 1 (14:25):
It's a really good question. There are people who don't
like private equity, who don't like the impact private equity
has had on healthcare and other industries, and they might
object to having therefore one k invested in that. But
if it's part of a target date fund, it's sort
of being offered to them as part of a broad portfolio.
They might not even be able to opt out of it.
Like at this point, we don't really know.
Speaker 2 (14:56):
This is the Big Take from Bloomberg News. I'm Sarah Holder.
To get more from The Big Take and unlimited access
to all of Bloomberg dot com, subscribe today at Bloomberg
dot com slash podcast offer. If you liked this episode,
make sure to follow and review The Big Take wherever
you listen to podcasts. It helps people find the show.
(15:16):
Thanks for listening. We'll be back tomorrow.
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:08):
One day in January, less than a week before President
Trump's second inauguration, a group of more than thirty money
managers hopped onto a Zoom call. It included representatives from Blackstone,
Ubs and other big Wall Street firms.
Speaker 1 (00:22):
It was sort of a meeting of like minded individuals
to strategize about. I guess goals would be a way
of putting it that they have in common.
Speaker 2 (00:30):
Alison McNeely covers the private equity industry for Bloomberg.
Speaker 1 (00:34):
One key principle I think that folks were coalescing around
was the idea to get more private equity, private credit
hedge fund, that sort of thing into the retirement accounts
of everyday Americans.
Speaker 2 (00:47):
They wanted a piece of the four to oh one K.
Speaker 1 (00:51):
It's kind of the next gold rush.
Speaker 2 (00:53):
For a long time, private equity firms have relied on
capital from pension funds, endowments, and other kinds of professional
investors to sustain their growth. But now these firms are
looking to explore new frontiers, potentially very lucrative frontiers. There's
about twelve trillion dollars in employer sponsored accounts like four
(01:14):
oh one K plans.
Speaker 1 (01:15):
That's only expected to grow. Those funds don't generally have
private assets in them, so if they can grab even
a slice of that, that's a few trillion right there.
Speaker 2 (01:25):
And when they gathered on that pre inauguration zoom call,
the industry's biggest players agreed, now is the time to
start grabbing slices. What was the vibe like?
Speaker 1 (01:34):
The vibe was definitely optimistic. You know, there's a sense
in the industry that now is the moment to strike
four one ks and the goal of getting into four
o one k's is an extension of a broader theme
that really has been taking place for the private equity
industry for many years now. The traditional sources of capital
have been tapped out, but these private equity firms are
(01:56):
still looking for ways to grow. And so what's a
market that they haven't really tap it before regular people?
Speaker 2 (02:07):
This is the big take from Bloomberg News. I'm Sarah
Holder today on the show. President Trump has signed an
executive order allowing private equity into Americans retirement plans. What's
behind PE's play for the four to oh one K?
How likely is it to work and what would it
mean for your savings? Let's say you're an employee working
(02:33):
at a company that offers four oh one K retirement plans.
You may not know exactly what kinds of investments are
in the retirement plan you choose.
Speaker 1 (02:42):
I barely know it's in my pharaoh and K. To
be quite honest with you.
Speaker 2 (02:46):
People tend to pick from a few default, pre mixed options,
and that's what makes the job of selecting what goes
into those four oh one K offerings so important.
Speaker 1 (02:55):
They basically have a responsibility to you, me to other
employees under federal law, to essentially pick safe or responsible
investments for us to choose.
Speaker 2 (03:07):
Traditionally, that's meant a four to oh one K is
invested in a mix of stocks and bonds.
Speaker 1 (03:12):
The classic portfolio would be sixty percent stocks forty percent bonds.
A lot of people are invested in what's called a
target date fund, so basically you kind of pick the
fund with the retirement date closest to when you think
you're going to retire. I think I'm in like a
twenty fifty five fund. I'm in my late thirties, So
to give you an idea, right now, that fund is
almost entirely in stocks, and as they get closer to retirement,
(03:35):
that fund will shift into bonds because bonds are perceived
to be safer.
Speaker 2 (03:39):
But stocks and bonds aren't the only kinds of investments
a four to oh one K could include.
Speaker 1 (03:44):
There are folks who say, no, actually, like private equity
is a totally valid and legitimate option as well, that
just hasn't been offered so far. They would like to see,
essentially my twenty fifty five target date fund take a
slice out of stocks and bonds and instead put it
into private equity funds.
Speaker 2 (04:04):
Can you explain how private equity firms work and why
they aren't typically offered as an option.
Speaker 1 (04:10):
Yeah, so private equity, we're really using a simplistic term
to sort of describe the broader industry. It's about twenty
five trillion dollars in assets of private assets, so equity, debt,
real estate. Basically, they don't trade on a stock exchange.
They're sort of bought and held for the long term. Generally,
(04:32):
when you invest in a private equity fund, you're handing
over a chunk of change to that firm for ten years.
You're saying, I'm going to give you a check for
one hundred million dollars to invest in your latest fund,
and you're going to go out and buy companies, turn
them around, and then hopefully ideally sell them at a
profit sometime in the next five to ten years. In
the meantime, I don't expect to get my money back.
Speaker 2 (04:55):
Private equity firms typically make their money by buying a company,
usually with debt. They try to maximize profits, cut costs,
and eventually sell it for more than they bought it for.
This setup means private equity investments are less liquid. It's
harder for an investor to cash out if the firm
hasn't yet turned around a business or flipped it. And
(05:15):
now higher interest rates and declining asset values have meant
fewer sales, which means investors aren't getting their money back,
which chokes off that cycle of reinvestment. It's a big
motivation for this push to tap new pools of cash
like retirement savings. But for investors, being exposed to private
(05:36):
equity comes with risks.
Speaker 1 (05:38):
There's a chance it might go bankrupt. There's a chance
this turnaround planned or this sort of value creation plan
you have might not work out. That is very different
from investing in the stock of a big, publicly traded
company where you're a shareholder and your one tiny, tiny,
tiny little slice of all these other public shareholders where
you can go and log into your brokerage app and
(05:58):
buy and sell that's stock whenever you want. So they're
just sort of perceived as a higher risk, higher return investment,
and so in the past they've been restricted only to
professional investors who kind of know what they're doing, you know,
pension funds, endowments, that sort of thing.
Speaker 2 (06:13):
What about fees. Are PE fees higher than other investments?
Speaker 1 (06:17):
Yes, Private equity fees are typically what they call two
and twenty, and so that basically means that the private
equity firm takes two percent of whatever you give them
as a management fee. That's just the money they make
for managing your money. And then the twenty percent is
that they take twenty percent of any profit that they make.
Speaker 2 (06:38):
The average ETF fee is closer to point four four percent,
significantly lower than the average PE fee. These risks and
fees have so far turned off four OHEK managers. Today,
fewer than one in ten four oh one K plans
offer any kind of alternative investment, According to a survey
from the American Retirement Association, of those that do less
(07:01):
than one in four include private equity in the mix.
But private equity proponents argue these risks are worth it
for the potential rewards. Walk me through some of the
arguments that private equity managers use for including private equity
in four h and K offerings.
Speaker 1 (07:20):
Yeah, so they say they beat the S and P
five hundred, and they might have a point there. You know,
if you want to broaden your exposure away from sort
of the biggest tech stocks, away from the volatility of
public markets, they might have an argument for that.
Speaker 2 (07:34):
But there's also a counter argument, Well.
Speaker 1 (07:37):
You're going into investments that are a lot more opaque,
that are not valued on a daily basis. There's a
little bit more art as to how they're valued and
how they're traded and what they might be worth. Then
who might want to buy them from you? Because you
you know, with a private equity investment, the only way
(07:58):
you make money if you buy a compon is you
can find someone else to sell that company to. And
that is actually a challenge that we've seen the private
equity industry go through in the last couple of years.
Higher interest rates, more expensive debt has made it harder
for private equity firms to sell a lot of these
companies that they've invested in, and so there is something
(08:18):
to be said about also being able to get in
and out of you know, MetaStock, knowing exactly what it's worth,
knowing that someone will buy it from you.
Speaker 2 (08:27):
Still, people pushing to get private equity into four oh
one case say that the fact that these are longer term,
less liquid investments is actually a good thing.
Speaker 1 (08:37):
Pollo Global Management CEO Marcron is an example of this.
They're a large private equity firm. They say that actually
private assets because of the long term investment horizonment of retirement.
It's a perfect match because you don't need your money
for twenty thirty, forty years. You don't actually need to
(08:57):
be all in stocks and bonds and things that can
be sold on demand whenever you want on a daily basis.
Speaker 2 (09:04):
Right, you don't have to buy today, sell it tomorrow.
You have to buy today, sell it in thirty years
or forty years exactly.
Speaker 1 (09:09):
And by taking a smaller portion of your portfolio some
people say ten percent, some people say twenty percent. By
taking a portion of that and instead putting in a
private equity fund, that yes, is a little bit riskier
but has the potential for higher return. It's actually smart,
and if you don't do that, you're leaving money on
the table. A lot of people who are proponents of
(09:30):
putting private investments, such as private equity into furrowon keys
say the best way to do it would be as
part of a diversified portfolio like a target day fund,
and so it's basically like the asset mix would change
over time. There are some people who still say, I
don't know like that. It's still it's really difficult to
determine how like the liquidity as they call it, will
(09:53):
really work, if people will really be able to get
out of these things if they need to, if the
asset mix is really appropriate. Like these are still live
questions that people are trying to solve.
Speaker 2 (10:06):
Part of the reason we don't know the answers to
these questions yet is because private equity share of American
four oh one k's is tiny. Trump's executive order will
change that after the break the political shifts that could
help PE capture investments from regular people. Four oh one
(10:32):
k's were invented some fifty years ago to help workers
avoid paying taxes on deferred compensation that evolved into a
way for employees to save for retirement without employers having
to offer a traditional pension. The number of people enrolled
in four oh one k's and similar retirement plans has
steadily grown, and companies are required to act in their
(10:54):
employee's best interest when selecting the breakdown of their four
oh one K offerings.
Speaker 1 (10:59):
Basically, the retirement law says the fiduciar has a sort
of responsibility to pick the most prudent investment for their
plan participants. They don't really say what prudent means, and
so people have taken a really conservative interpretation of that.
Speaker 2 (11:16):
Bloomberg's Alison McNeely says that requirement is one reason many
employers have shied away from including private equity in their plans.
Speaker 1 (11:25):
There's a lawsuit that a lot of people in and
around the industry invoke, which is the Intel lawsuit. Intel
was sued about a decade ago after Intel puts some
private equity funds in some hedge funds into its Furrow
and K plan. Some of those employees sued the company.
They said, you put our plan into these private assets
(11:46):
at the time that public markets were on a tear,
and we actually missed out on the.
Speaker 2 (11:51):
Market rally, you didn't manage my money correctly by investing
in private equity.
Speaker 1 (11:56):
Yeah, and so that lawsuit really created a chilling effect
in the industry because other companies don't want to get sued,
and they just basically want to know that if they
were to allocate some of their foura on K into
private investments, that they wouldn't get sued. And also, even
(12:16):
if they do get sued and defend themselves, there's still
a lot of headline or reputational risk there that many
of these companies that are conservative by nature and want
to protect their reputations would like to avoid.
Speaker 2 (12:29):
That. Intel case over its four oh one K strategy
was eventually dismissed. The plaintiffs are trying to get that
dismissal overturned on appeal, but some employers are waiting for
a more definitive sign that exposing their employees for one
ks to private equity won't get them into trouble.
Speaker 1 (12:46):
I think a lot of corporate four oh one K
plan administrators are looking for a green light from the
government that they won't be sued if they put alternative
assets into their retirement plan. The way the law is
right now is it's kind of silent technically from a
(13:09):
legal standpoint, there's nothing preventing a company from putting private
equity in their fore own K plan, provided they've done
their due diligence and run their process to make an
appropriate investment. It's really sort of a hearts and minds
debate or argument or fight as much as anything else.
Speaker 2 (13:30):
With Trump in the White House and Republicans in control
of Congress, private equity advocates have been waiting for the
moment they get more clarity from the federal government.
Speaker 1 (13:40):
The first Trump Department of Labor did put out a
letter that says we think that private equity has a
role in for own cas. So that was a pretty
clear signal back in twenty twenty that you know, folks
could possibly go ahead with this.
Speaker 2 (13:53):
Is there evidence that employees would opt into those plans.
Speaker 1 (13:58):
I don't think there's a sense of this point that
employees are clamoring for private assets, but maybe they will
in the future.
Speaker 2 (14:06):
Right, For some people, private equity doesn't have the best reputation.
They see headlines about its negative impact on sectors like
healthcare and housing. I guess what I'm asking is, do
you get the sense that some workers would want to
avoid having their four oh one K tied up in
private equity for ethical reasons.
Speaker 1 (14:25):
It's a really good question. There are people who don't
like private equity, who don't like the impact private equity
has had on healthcare and other industries, and they might
object to having therefore one k invested in that. But
if it's part of a target date fund, it's sort
of being offered to them as part of a broad portfolio.
They might not even be able to opt out of it.
Like at this point, we don't really know.
Speaker 2 (14:56):
This is the Big Take from Bloomberg News. I'm Sarah Holder.
To get more from The Big Take and unlimited access
to all of Bloomberg dot com, subscribe today at Bloomberg
dot com slash podcast offer. If you liked this episode,
make sure to follow and review The Big Take wherever
you listen to podcasts. It helps people find the show.
(15:16):
Thanks for listening. We'll be back tomorrow.
Hosts And Creators
Sarah Holder
Saleha Mohsin
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