Re PE in 401(k)s: yeah, I agree that what’s in it for the industry is more assets, and if they get it included in default investment target date funds, very little scrutiny by participants. Dumb, sleepy, permanent capital is perfect for them. It would be a big win. It’s the plan sponsors that need to worry. The plaintiffs bar is probably watching closely and licking their chops. It is that fear that will probably keep sponsors from adopting it widely. Everyone maligns them, but the plaintiffs bar does I think serve a socially useful role in situations like this.
Re PE in 401(k)s: yeah, I agree that what’s in it for the industry is more assets, and if they get it included in default investment target date funds, very little scrutiny by participants. Dumb, sleepy, permanent capital is perfect for them. It would be a big win. It’s the plan sponsors that need to worry. The plaintiffs bar is probably watching closely and licking their chops. It is that fear that will probably keep sponsors from adopting it widely. Everyone maligns them, but the plaintiffs bar does I think serve a socially useful role in situations like this.