Vanguard released an investor allocation framework on August 14, expressing caution about the role of private equity in workplace retirement plans. This follows former U.S. President Donald Trump signing an executive order in August 2025, directing federal agencies to clear regulatory hurdles for alternative investments (including private equity, cryptocurrencies, and real estate) in workplace retirement plans. The Department of Labor also proposed safe harbor rules in March 2026, leading companies like BlackRock to begin developing related products. Vanguard's framework points out that private equity valuations are opaque and may conceal actual losses, and its illiquidity could create complexities if investors need early withdrawals. A 2026 report by Bain & Company shows that global private equity firms hold approximately $3.8 trillion in unsold portfolio companies, with the average holding period extending to about seven years, and investor allocations have been below 15% of net asset value for four consecutive years.