Partners Group Welcomes White House Executive Order Advocating for Inclusion of Private Markets Investments in Defined Contribution Pension Funds

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NEW YORK--(BUSINESS WIRE)--Aug 7, 2025--

Partners Group, one of the largest firms in the global private markets industry, welcomes the Executive Order signed today by US President Donald Trump, which aims to allow 401(k) investors to access alternative assets for better returns and diversification and instructs the Department of Labor (“DOL”) to work with the Secretary of the Treasury, the Securities and Exchange Commission, and other federal regulators to facilitate this.

David Layton, CEO, Partners Group, comments: "With this Executive Order, the US government has taken a meaningful step towards removing any legal uncertainty for fiduciaries evaluating the inclusion of private markets in DC plans. Ultimately, this will create greater parity between the investment options and retirement outcomes available to beneficiaries in DB and DC plans. Private markets are stewards of an increasing portion of the real economy, so it is imperative that they are accessible to all investors."

Retirement industry research has shown the potential positive impact of private markets exposure on a DC plan participant's retirement income. According to a recent study from Mercer, allocating 20% of a DC plan portfolio to diversified private markets exposures could improve the expected return without increasing risk. 1 However, plan managers have to-date been reluctant to meaningfully incorporate private markets exposure into DC plans, including 401(k)s. This is due to lingering fears of non-compliance with their fiduciary duty under federal law, despite two prior statements from the US government on this topic.

Partners Group has long been engaging in active dialogue with government agencies in support of greater DC access to private markets. In 2020, the firm played an active role in securing an Information Letter from the DOL, which clarified that under federal law, DC plan fiduciaries could incorporate certain private equity strategies into diversified investment options, such as target-date funds or managed accounts. The Letter specifically referenced Partners Group’s DC offering as an example of a private equity investment product "designed to be used as a component of a managed asset allocation fund in an individual account plan." However, in 2021, the DOL issued a supplemental statement that modified its original guidance, including cautioning fiduciaries not to attempt to evaluate private markets for inclusion in DC plans if they did not have experience of doing this for DB plans. In May 2025, Partners Group sent a request for the withdrawal of this supplemental statement to the Department of Labor demonstrating the firm’s commitment to improving retirement outcomes for Americans.

Today, it is estimated that of the total USD 3.5 trillion target-date fund market in the US, only USD 115 billion is allocated to funds with private equity and/or real estate exposure. 2 Meanwhile, a typical combined allocation to private equity and real estate in a DB pension plan is >10%. 3

Daniel Cahill, Head of US Defined Contribution, Partners Group, states: "This is a good day for 401(k) savers across the US. With this clear guidance from the US government, we anticipate that more private markets firms will, like Partners Group, commit to developing the capabilities needed to build products that meet the specific requirements of the DC market. With time and choice, we believe that DC plans will adopt similar asset allocations to DB plans, incorporating private markets as a key potential performance driver."

Partners Group launched a private equity fund for the US DC market in 2015, alongside comparable offerings in the UK and Australia. In doing so, the firm built on the experience gained by developing investment products tailored to the needs of individual investors since launching its global private markets evergreen franchise in 2001.

Today, the firm remains one of only a handful of private markets firms offering a product that meets the complex operational requirements of the US DC system. In the current system, underlying fund allocations typically need to provide daily liquidity and pricing and highly standardized purchase and redemption procedures. Partners Group's US DC strategy is designed to be adopted by professionally managed or advised plans and incorporated in structures such as target-date funds and managed accounts.

About Partners Group
Partners Group is one of the largest firms in the global private markets industry, with around 1,800 professionals and over USD 174 billion in overall assets under management. The firm has investment programs and custom mandates spanning private equity, private credit, infrastructure, real estate, and royalties. With its heritage in Switzerland and its primary presence in the Americas in Colorado, Partners Group is built differently from the rest of the industry. The firm leverages its differentiated culture and its operationally oriented approach to identify attractive investment themes and to transform businesses and assets into market leaders. For more information, please visit www.partnersgroup.com/ or follow us on LinkedIn.

1 Mercer (US) LLC (2024): Looking to the future; The evolution of private investments in US defined contribution plans. Results may vary based on specific market conditions, investment selection, time horizon, and individual plan characteristics. Past performance is not indicative of future results.
2 State Street Global Advisors (March 2025): Private Markets in Target Date Funds – Why Now?
3 Georgetown Center for Retirement Initiatives (2023): Has the Lack of Asset Diversification in DC Retirement Plans Been a Costly Missed Opportunity?

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KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: FINANCE PROFESSIONAL SERVICES WHITE HOUSE/FEDERAL GOVERNMENT ASSET MANAGEMENT PUBLIC POLICY/GOVERNMENT

SOURCE: Partners Group

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PUB: 08/07/2025 05:16 PM/DISC: 08/07/2025 05:17 PM

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