Private equity firms are hoping that the new Trump administration makes it easier for them access to something they have long wanted: your 401(k) and the collective $12 trillion Americans have invested in defined contribution plans.
So many people don’t realize just how much capital private equity controls.
It’s a $13-trillion industry that funnels money throughout the economy, often in under-the-radar ways.
For example, a private equity firm might be your neighbor’s landlord or be responsible for that overpriced footlong sandwich you ate at Jersey Mike’s last week.
Now, the industry has its eyes on your retirement account
Investing in private equity is becoming more common with time, and with the incoming administration, more deregulation could be on the way.
“We’ll make the case for a pro-growth regulatory regime that supports small businesses and provides more opportunity to everyday investors," said Drew Maloney, president and CEO of private equity lobbying group American Investment Council.
The argument for such a change is that private equity funds could give everyday investors more diversification away from public markets and a shot at bigger returns — in exchange for some illiquidity...
“Should we get access to 401(k) through broad-based reform or regulatory change or regulatory encouragement, I believe that would be upside not just for us but for the entire industry," Rowan told analysts in November.
I mean....what could possibly go wrong....🧐.....riiiiight..🤑....