'Those just starting are behind': Private real estate eyes a 401(k) windfall

US fund managers have responded optimistically to president Donald Trump’s executive order last week aimed at allowing 401(k) and other defined-contribution retirement plans greater access to alternative investments, including private real estate.

Carlyle Group is “super enthusiastic,” said its chief executive Harvey Schwartz, who also praised the move as “long overdue." Some managers, like Blue Owl Capital and Goldman Sachs Asset Management, have already been working to tap into this market with announcements in recent months of new initiatives aimed at including private assets in retirement plans.

Despite the optimism, questions remain around the potential regulatory framework and guardrails, the overall appetite for private real estate equity and credit, where 401(k) capital might fit into real estate managers’ portfolios, and the types of products that will need to be created to capture it.

This episode seeks to break down the possible answers, with perspectives from Samantha Rowan, editor of PERE Credit, and Bill Myers, Washington, DC correspondent for affiliate title Private Funds CFO. Later in the episode, we also hear from Hannah Schriner, managing principal at consultant Meketa Investment Group and head of the defined contribution practice group, for more on how real estate can fit into 401(k) plans and how fund managers can best position themselves to serve them.

Also read:

• PE Hub: Apollo, Blackstone Carlyle, KKR enthusiastic about 401(k) plan executive order
• Private Funds CFO: In the Loop: Trump’s retail hard launch
• PERE Credit: Principal white paper makes the case for CRE debt

A note from Meketa: The views and information discussed in this podcast are for informational and educational purposes only. They should not be considered, or relied upon, as financial, investment, tax, or legal advice. Listeners should consult with their own professional advisors before making any financial decisions. The opinions expressed by guests are their own and do not necessarily reflect the views of the hosts or affiliated organizations.