Blackstone, Carlyle jumps as 401(k) rule opens $14T opportunity

Shares of alternative asset managers, including Blackstone Inc. and The Carlyle Group, moved higher on Monday after the Trump administration unveiled a long-awaited proposal that could expand access to private markets and cryptocurrencies within US retirement accounts.

The proposed rule, issued by the US Department of Labor, aims to ease longstanding barriers that have limited the inclusion of alternative assets in 401(k) plans.

The move is widely seen as opening a significant new pool of capital for private equity, private credit, and other alternative investment strategies.

Policy shift opens door to new capital

The proposal outlines a framework that would allow plan fiduciaries to include less liquid and more complex assets in retirement portfolios, provided they follow a rigorous evaluation process.

Trustees would need to “objectively, thoroughly, and analytically consider” factors such as fees, liquidity, valuation and performance benchmarks.

Treasury Secretary Scott Bessent described the measure as “an initial step” and said it aims to be “mindful of the importance of protecting retirement assets.”

The rule also introduces a “safe harbor” provision, offering legal protection to fiduciaries who adhere to the outlined process.

This is a key development for plan sponsors who have historically been cautious about adding alternative assets due to litigation risks.

The initiative follows an executive order from Donald Trump and is subject to a 60-day public comment period before potential finalization.

Industry welcomes long-awaited reform

The proposal was met with strong support from major asset managers and industry groups, helping lift shares across the sector.

BlackRock Inc., which manages more than $14 trillion in assets with a significant portion tied to retirement products, was among those backing the move.

Alternative asset managers such as Blackstone, KKR & Co. Inc. and Apollo Global Management Inc. also stand to benefit from expanded access to defined contribution plans.

Apollo CEO Marc Rowan said: “The President’s Executive Order is a thoughtful step toward addressing the growing retirement crisis. Americans increasingly lack the savings and income needed for a secure retirement,” he said, adding the proposed rule can “meaningfully improve retirement outcomes.”

Industry groups emphasized that the proposal could help align 401(k) plans with pension funds, which already allocate heavily to alternatives.

The Labor Department noted that up to 99% of US state and local pension plans held alternative investments in 2022, compared with just 4% of defined contribution plans in 2024.

Blackstone shares surged 4.7% in the session, while Carlyle Group stock gained 4.48% and Apollo shares jumped 3.77%. 

Growth potential outweighs risks—for now

The prospect of unlocking retirement savings as a funding source has fueled optimism around long-term growth for firms like Blackstone and Carlyle.

The rule could make it easier for 401(k) plans to include private equity, private credit, real estate, and even crypto assets—areas where these firms have built large platforms.

At the same time, concerns remain.

Critics warn that higher fees, complexity, and limited liquidity could pose risks for retail investors.

Senator Elizabeth Warren criticized the proposal, arguing it could expose retirement savers to risky assets during a period of market stress.

Recent strains in private markets have also drawn attention.

Some private credit funds, including business development companies, have experienced a wave of withdrawals, highlighting liquidity challenges in certain segments.

Still, the administration has stressed that the rule is process-driven rather than prescriptive.

Legal experts note it primarily provides clarity and protection for fiduciaries rather than mandating changes.

For now, however, the market reaction reflects investor confidence that expanded access to retirement capital could provide a meaningful tailwind for alternative asset managers—helping explain the gains in Blackstone and Carlyle shares.