Investment Strategy - The Trump administration aims to facilitate the allocation of 401(k) funds into alternative investments, including private equity and cryptocurrency [1] - Potential legal challenges pose a significant obstacle to this initiative [1]

Investment Strategy - Franchises are considering sovereign wealth funds as potential investors, favoring them over private equity firms [1] Industry Perspective - Washington Capitals owner Ted Leonsis advocates for franchises to embrace sovereign wealth investment [1]

Fundraising - StepStone plans to raise at least $7 billion for two secondaries funds [1] Market Trends - Demand for secondaries funds is increasing due to difficulties in exiting private equity investments [1]

Investment Strategy - Yale's private-equity strategy is becoming harder to implement [1]

NFL Ownership & Private Equity - Private equity is reshaping NFL ownership [1] - Miami Dolphins' President & CEO Tom Garfinkel discusses the league's biggest moves at Bloomberg PowerPlayers in New York [1] Event Information - Bloomberg PowerPlayers event took place in New York on September 4th [1]

Market Trends & Regulatory Landscape - The executive order signed last week aims to make it easier for 401(k)s to include alternative investments like private equity and crypto [1][15] - Regulatory clarity and direction from the SEC and DOL are crucial in the coming weeks and months [15][16] Investment Opportunities & Strategies - Defined benefit plans, pension funds, endowments, and foundations have been investing in private assets for 30 years with positive returns [4][5] - Empower has formed partnerships with several alternative managers to provide access to these strategies [6] - The approach is to allocate no more than 15% of assets to private assets, using a collective investment trust or target date type construct with a liquidity sleeve [10] - Defined contribution market could see an allocation to privates between 10% and 20% over the next 10 years, potentially becoming a $4-5 trillion market [14][15] Potential Risks & Considerations - There is a convergence happening between the public and private markets regarding valuations, potentially impacting performance [8] - Illiquidity of private investments raises concerns about accessibility for retirees needing immediate access to funds [8][9] - Fee structures for private alternatives are meaningfully higher than in the public space, and the true returns post-fees need consideration [13][14] Company Performance & Strategy - Empower has 19 million customers and $2 trillion on its platform [12] - Empower aims to provide access to private assets, with the fiduciary (plan sponsor, advisor, and investment consultant) determining timing and strategies [12][13]

A newly signed executive order by U.S. President Trump allows 401k retirement accounts to include alternative assets such as cryptocurrencies and private equity.Video Source: https://t.co/3gagQtWlt7 https://t.co/JEnlB2HiNE ...

Investment Opportunities & Market Trends - A Trump executive order aims to simplify the inclusion of private equity and cryptocurrency in retirement portfolios [1] - The executive order focuses on alternative assets for savers [1]

Investment Opportunity - Opening 401ks to private assets aims to provide retirement savers with potentially higher returns and more investment options [2] - BlackRock estimates that adding private market assets could increase returns by approximately 50 basis points (0.5%) annually [2] - This could lead to a potential increase of 15% in 401k plan value over a 40-year period [2] Potential Risks and Concerns - Private equity's inclusion in retirement accounts may lead to increased costs for investors [3] - Private assets are generally less liquid compared to publicly traded stocks and bonds [3] - This illiquidity could make it more difficult for individuals to access their savings quickly before retirement [3] - Assessing and valuing private assets can be more challenging due to limited publicly available information [4] - Greater risk is involved due to the difficulty in assessing and valuing private assets [4]

IPO Market Dynamics - Investor appetite for IPOs is picking up, with companies like Figma, Circle, Chime, and Firefly Aerospace experiencing significant gains on their first trading days [1] - The IPO market is experiencing pent-up demand and asymmetric speculation, with abundant capital seeking high-return, low-risk opportunities [2] - Speculative excess is evident in the market, potentially indicating a frothy environment with red flags [3][4] - Post-IPO volatility can reach 100% to 250%, attracting traders seeking to double their investment [5] IPO Pricing and Insider Advantage - Most individuals cannot participate in IPOs directly, focusing on post-IPO trading, particularly in options markets [6] - Underwriters may intentionally underprice IPOs, benefiting investment banks and insiders who hold restricted stock with a typical 6-month lockup period [8] - Underpricing IPOs creates positive PR and allows insiders to benefit from an initial price surge [9] - A small percentage of outstanding shares traded at a high price can significantly inflate the company's market capitalization [10] Retail Investor Access to Private Markets - There's a push to allow retail investors access to private equity, venture capital, and private credit through 401(k)s, traditionally limited to accredited investors [12] - Advocates argue for self-directed investment choices in 401(k)s, allowing individuals to invest in a wider range of assets [13][14] - Opening private markets to retail investors democratizes the process but also introduces new levels of risk due to less stringent disclosure rules compared to public companies [15] - Opening up private markets is expected to increase market efficiency and foster industry growth, despite potential risks [16][17] Private Equity Investment - The argument that private equity outperforms public markets long-term is primarily due to the lack of day-to-day liquidity, rather than inherent differences in the underlying business [19] - The extended duration of private equity funds (e.g., 7 years) reduces the observed volatility in their P&L, potentially masking the true risk [21]