The Trump administration advocated for 401(k) investments in private equity, yet data shows that 54% of the largest US bankruptcies in 2025 were private equity-backed companies.
The U.S. Department of Labor recently proposed a new rule aimed at allowing over 90 million Americans to access alternative investments, including private equity. However, the private equity industry is currently facing challenges. PitchBook data shows that private equity firms currently hold 13,500 unsold companies, with thousands of them having been in portfolios for six to nine years. A report by the non-profit organization PESP indicates that 54% of the largest U.S. bankruptcies in 2025 (with liabilities of at least $1 billion) involved private equity-backed companies. Experts and public opinion polls express concerns about introducing private equity into retirement portfolios, primarily focusing on risk, high fees, and lack of transparency. A 2026 survey revealed that 65% of U.S. voters desire stricter regulation of private equity firms.
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