Core Viewpoint - The recent U.S. executive order allowing 401(k) pension plans to invest in private equity has raised several questions regarding its implications for the market and investment strategies [1][4]. Group 1: Fund Performance and Trends - Historical data indicates that FOF (Fund of Funds) has maintained stable fundraising levels over the past 20 years, while acquisition funds have experienced rapid growth in fundraising [6]. - If FOF fundraising were to surge like acquisition funds, it raises questions about the potential impact on performance. Acquisition funds have shown strong stability in performance, but increased fundraising activities since 2015 have led to greater performance volatility [6]. - The stability of FOF returns, with the exception of lower returns in 2020, may be attributed to its diversification advantages or smaller scale, allowing for excess return potential. Overall, FOF returns are comparable to the stable return levels of acquisition funds [6]. Group 2: Market Impact and Future Outlook - The influx of retail investment into private equity and alternative investments could lead to increased volatility and competition in the market, potentially reducing excess return opportunities [7][8]. - Despite concerning fundraising figures in 2022 and 2023, these numbers should be interpreted cautiously as they include incomplete data from funds that have not yet closed. Future investment expansion may continue to experience volatility similar to the early 2020s due to crowded capital and intensified competition [7]. - Other investment categories, such as acquisition funds, venture capital, or secondary markets, may also see increased interest and fundraising if they expand their capital inflows [8].