LSTA Applauds Executive Order Increasing 401 (K) Access to Private Markets Investments

NEW YORK--(BUSINESS WIRE)--LSTA, the trade association for the U.S. corporate lending market, today issued the following statement regarding the EO improving access of 401(k) and other defined contribution plans to private markets investments.

“LSTA believes that access to private markets such as private corporate credit assets in 401(k)s will drive better investment outcomes for the overwhelming majority of American workers who depend on these plans for retirement.

Enabling well-diversified, professionally managed 401 (k) plans to incorporate the benefits of private markets, with appropriate safeguards in place, is an important step in allowing 401(k) plan participants to access the types of asset allocations and diversification that have been successfully used in defined benefit plans. As the population of public companies continues to shrink, access to private market investments is essential to enable Americans to meaningfully diversify their portfolios and benefit from increasingly important investment opportunities.

The vast majority of American private sector workers do not have access to the investment benefits of private markets. LSTA and our members are committed to playing our part in providing such access along with the important safeguards that go along with it.”