BlackRock makes push to make private assets available to 401(k) accounts

Market Trends & Investment Opportunities - Washington and Wall Street are pushing to bring private assets to 401(k)s, potentially opening up a new frontier for alternative asset managers [1][2] - Blackrock plans to offer a target date fund with up to 20% allocated to private assets by early next year [2] - Incorporating private equity and private credit into a 401(k) could deliver 15% more income over four decades, before fees [3] - The House advanced a bill broadening the accredited investor status, allowing more people to invest in private markets through their 401(k)s [3] - The Trump administration is expected to issue an executive order directing federal agencies to study and propose rule changes involving private assets in retirement plans [4] - Blackrock acquired a private credit manager with $14 billion in assets, indicating a strategic move to capitalize on this potential new market [5] Risks & Challenges - Sizable hurdles remain among plan providers, including high fees, illiquidity, opacity, and litigation risk [4] - Over half of defined contribution plans with more than $1 billion in assets have been sued for excess fees, highlighting litigation concerns [5] - Structuring products specifically for 401(k)s is required to address concerns about fees, liquidity, and transparency [4]