US EditionTerry Savage: Private Equity Targets 401(k) Plans
- In May 2025, Basic Capital launched to lend clients $4 for every $1 invested in their 401 accounts, mostly through loans.
- This startup emerged amid a retirement crisis where 79% of Americans worry about financial security and private equity seeks new liquidity sources.
- Basic Capital aims to solve retirement funding gaps by using riskier assets targeting a 10% yield, while industry giants plan 401 funds with private investments.
- Liz Hoffman characterized Basic Capital's launch with mixed feelings, calling it both 'neat' and 'oh, dear,' highlighting worries that while investing may be straightforward, exiting such investments can be extremely difficult.
- The SEC prioritizes including private equity in retirement plans for 2026, raising issues about protecting small investors amid valuation and liquidity risks.
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36 Articles
Helena Independent Record
Terry Savage: Private equity targets 401(k) plans
Wall Street has a new target. With nearly $9 trillion in assets, 401 plans have caught the eye of Wall Street insiders. Ordinary investors aren’ t aware of this dire situation for Wall Street tycoons, since individuals have been largely…
As private equity enters retirement plans, is it too dangerous for average investors to jump in?
Private equity could expose investors to greater risks and potentially higher fees Article Attribution | Read More at Article Source The post As private equity enters retirement plans, is it too dangerous for average investors to jump in? appeared first on RocketNews.
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CalPERS joins growing wave of pension funds offloading private equity stakes as sales volume hits record From PIonline.com: The California Public Employees' Retirement System is exploring plans to reenter the secondary market sales arena, joining a growing list of public pension funds and endowment... Article link
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