The Next Winners in PE’s Big 401(k) Push: Million-Dollar Lawyers

Core Insights - The legal sector is capitalizing on the opportunity to help private equity firms attract small investors by accessing America's 401(k) accounts [1][2][3] - Law firms are structuring funds that aim to bring private equity investment styles to average investors, despite some large institutions pulling back from these investments [2][4] - The financial sector sees a significant incentive in tapping into the nearly $13 trillion held in 401(k) accounts and other defined-contribution retirement plans [3] Legal Fees and Market Dynamics - Legal fees for setting up private-markets funds for retail investors can reach up to $1.5 million, with ongoing legal work costing hundreds of thousands annually [5] - The demand for fund specialists has surged, with compensation potentially reaching seven digits, reflecting a shift in focus towards more lucrative private market opportunities [6] Industry Trends - Major law firms like Simpson Thacher & Bartlett and Kirkland & Ellis are actively seeking talent to assist private equity firms in establishing funds for retail investors [7] - There has been a notable increase in inquiries from private-markets firms looking to enter the 401(k) market, indicating a growing interest in this segment [7]