1. 10% of investors want nontraditional 401(k) investments like private markets. 2. 59% show interest in investing in private companies. 3. Many lack awareness of private-credit funds; 40% haven't heard of them. 4. Wall Street firms aim to democratize access to private investments. 5. Higher fees of private investments concern potential 401(k) adopters.
Investor interest in private markets is growing, but significant obstacles remain. Historically, shifts in investment trends can take time, as seen with ETFs' slow adoption initially.
There is potential for private investments to affect IN's positioning if they are included in offerings. The inherent interest from investors could lead to new partnerships or products in this sector.
The push for private investments in 401(k)s will take time to gain traction. Historical changes in investment offerings often require substantial market education.