US EditionTerry Savage: Private Equity Targets 401(k) Plans
OREGON, JUL 1 – The bill aims to protect medical decision-making from financial influence by private equity-backed MSOs, ensuring healthcare providers' independence in Oregon's medical sector.
- Basic Capital, founded by Abdul Al-Asaad, launched in May 2025 offering clients $4 loans for every $1 invested in their 401 plans.
- The startup emerged amid a widespread retirement crisis, with 79% of Americans worried about financial security and private equity seeking liquidity from large 401 assets.
- Basic Capital’s investment strategy involves allocating a significant portion of client funds to loan-based assets aiming for a 10% return, which carries greater risk than the current 7.5% yield offered by junk bonds.
- Al-Asaad recognizes the associated risks and aims to expand Basic Capital’s portfolio by including a broader range of investments such as equities, fixed income, real estate projects, and alternative private holdings. He remarked, “I am permitted to finance a Coachella ticket. Why can't I finance Berkshire Hathaway?”
- The SEC prioritizes private equity inclusion in retirement plans for 2026, while regulators caution on valuation and liquidity, signaling growing attention on retail investors’ exposure.
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37 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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