All Americans should have access to strong private investment returns
AIC CEO Will Dunham discussed how President Trump’s executive order expanding access to private investments for 401(k)s can help Americans saving for retirement.
“We want to allow more Hoosiers to make their own investment decisions”
Rep. Yakym (R-IN) discussed how President Trump’s recent executive order democratizing access to private investments for 401(k) investors could benefit his Hoosier constituents.
Expanding Access to Dynamic, Fast-Growing Private Companies
Workers with 401(k)s have been unable to benefit from much of today’s growth because it sits outside of public markets.
- Today, there are half as many publicly traded companies in the U.S. as there were in the 1990s.
- More companies are going public later, choosing to stay private during their highest growth phase.
- Nearly 87% of firms with more than $100 million in revenue a year remain private.
Research from the Georgetown Center for Retirement Initiatives suggests that incorporating private investments into diversified retirement portfolios can meaningfully improve retirement outcomes.
82%
The share of retirement outcomes improved.
6% – 8%
Improvement in target date fund performance.
+$2,400
Additional spending power per year for a retiree earning $48,000 per year in retirement.
Providing a Critical Source of Diversification
Not only are there fewer publicly traded companies today, but a small number of companies are driving a large portion of returns. That concentration leaves everyday savers more exposed to volatility.
Adding private investments to 401(k) plans can help reduce that risk because they behave differently than public stocks and bonds. Over the past decade, institutions with higher private investment allocations experienced higher returns with less volatility, according to Cambridge Associates. For everyday savers, diversification is about building more resilient retirement portfolios.
Delivering a Proven Track Record of Strong Returns
Private investments have been a cornerstone for nearly every public pension plan in America and other institutional investors, delivering strong returns and providing diversification through periods of economic uncertainty.
Expanding access would allow everyday savers with 401(k)s to enjoy many of those same benefits and build more resilient, long-term retirement portfolios.
13.5%
The private investment median annualized return over a 10-year period even after fees, higher than all other asset classes including public markets and fixed income.
34 Million
The number of U.S. public sector workers who depend on private investments to secure their retirements.
89%
The share of public pension funds nationwide that invest a portion of their portfolio in private investments.
Jim Herrington, Private Equity Investment Officer, West Virginia Investment Management Board
“Even with the gains in public equity in recent years, the ten-year returns of private equity are still stronger.”
Kate Brassington, Investment Director, Public Employees Retirement Association of New Mexico (PERA)
“Our private equity portfolio has enhanced New Mexico PERA’s ability to deliver on our mission to provide retirement security for our over 100,000 members.”
Farouki Majeed, Chief Investment Officer, School Employees Retirement System of Ohio
“Private equity has been the highest returning asset class in the Ohio SERS portfolio for the past ten years and longer, and has contributed to enhancing the funded ratio and sustainability of our pension fund.”
AIC Supports Expanding Access to Private Investments
The American Investment Council supports the giving everyday savers more choices and more control over their 401(k) retirement savings and their financial futures. Read more about President Trump’s August 2025 Executive Order on democratizing 401(k)s here.