Private equity: Now peddling derivatives squared of its failures

Private equity: Now peddling derivatives squared of its failures

Private equity: Now peddling derivatives squared of its failures


On August 7, 2025 President Donald Trump signed the executive order titled “Democratizing Access to Alternative Assets for 401(K) Investors” that is designed to allow employer-sponsored retirement plans and private 401(k)s to invest in a range of privately traded assets. These assets include private equity (PE), private debt, as well as high-risk assets, such as digital assets, cryptocurrencies and real estate.  The new order sets in motion potentially significant funds inflows into unlisted markets, and is likely to be a major boost for private asset firms. On the investor side, access to these new asset classes promises higher returns, at least…