On August 7, 2025, the White House issued an executive order intended to expand access to alternative assets through retirement plan vehicles. The initiative reflects a broader regulatory shift toward facilitating retail investor participation in private markets.
The executive order directs the Secretary of Labor to reexamine and clarify existing Department of Labor guidance concerning fiduciary obligations related to the inclusion of alternative assets in ERISA-governed defined contribution plans. This includes guidance on the appropriate fiduciary process for asset allocation funds that hold such investments. In addition, the order calls for interagency coordination—among the Treasury Department, the Securities and Exchange Commission (”SEC”) and other regulators—to evaluate whether complementary regulatory changes are appropriate. The SEC is also directed to revise its rules and guidance to improve access to alternative assets for participant-directed retirement plans.
As noted in our prior post on the growing use of permanent capital vehicles, sponsors have increasingly turned to these structures to provide long-term exposure to illiquid assets such as private equity and private credit. The executive order is expected to accelerate this trend by encouraging development of fund vehicles tailored to retail investors who have historically been excluded from these asset classes. Visit our permanent capital vehicles resources page for detailed information on these.
If regulations are implemented as described, the order could mark the beginning of a significant shift in how defined contribution plans allocate capital, reduce barriers to investment in private equity and alternative strategies and result in new retail-focused permanent capital structures. While alternative assets may offer diversification and enhanced return potential, investors and their fiduciaries must continue to consider and assess risks associated with a vehicle’s liquidity, valuation, transparency and fees. A link to the fact sheet discussing the Executive Order can be found here.
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