Retail investors are increasingly eager to access private equity (“PE”), drawn by the promise of higher returns and diversification. With public markets dominated by a narrow set of tech-driven mega-cap stocks, the appeal of uncorrelated, long-term private market exposure is growing.
According to the American Investment Council’s 2025 public pension study, whose members consist of private equity and growth capital firms, private equity delivered a median annualized return of 13.5% over the 10-year period ending in 2024. It was also the best-performing asset class in public pension portfolios—outpacing public equity, real estate, and fixed income.
To date, retail investors have had limited access to burgeoning private assets, an immense marketplace. Private assets, including PE, have tripled in size since 2013 and are projected to reach $65 trillion globally by 2034, according to Bain. And more than 1,500 global startups now carry unicorn valuations, as companies stay private longer.
Retail interest is being reinforced by a shift in policy. Congress is weighing legislation to allow defined contribution retirement plans—including 401(k)s—to access private equity. A new executive order is expected to clarify fiduciary protections for plan sponsors, particularly around