Trump Signs Order on Investment in Private Funds

• The Trump order may simplify investments in private funds.
• Employers receive recommendations regarding new investments.
• Investments in private capital carry risks and demands for verification.

On September 7, 2025, President of the USA Donald Trump will sign an order that may simplify investments in private funds for workers' pension plans, such as 401(k). This decision aims to allow Americans to invest a portion of their savings in alternative investments, including private capital.

The order requires the Department of Labor and the Securities and Exchange Commission to provide recommendations for employers regarding ensuring access to such investments. Currently, there are no laws prohibiting the promotion of private investments, but many traditional plans uniquely require their participants to have reasonable and accessible investments.

Private funds, as a rule, have lower liquidity and higher risks than stocks and bonds, due to their structure and lack of transparency. For example, funds may have lengthy redemption terms, which hinder access to cash.

After the signing of the order, new rules may be developed by 2026, and employers will need to conduct a retail review of new investment opportunities. Experts recommend involving legal consultants and specialists to ensure compliance with the requirements of the new proposals.

Discussions about the potential advantages and risks of investments in private funds continue. Some analysts believe that this could ensure greater diversification for investors, as the private market develops faster than the public one.

Tags: USA/Politics/Economy