What are interval funds and why are they being offered to 401(k)s?

Interval funds are a type of evergreen fund offering periodic liquidity, designed to fit within 401(k)s to diversify retirement portfolios beyond public stocks.

Which firms are leading the charge into private credit for retirement accounts?

Firms like Blackstone, KKR, and Blue Owl are actively launching new interval funds and partnering with retirement plan sponsors to access these markets.

Are private credit investments suitable for average retail investors in their 401(k)s?

While firms argue for diversification benefits, concerns exist regarding higher fees and potential underperformance compared to public indexes for retail investors.

Home / Business and Economy / Retirement Funds Open to Private Credit Boom

Retirement Funds Open to Private Credit Boom

23 Jan

•

Summary

Firms are launching new funds compatible with 401(k)s.
Private credit assets in US interval vehicles grew significantly.
Concerns exist about fees and performance for retail investors.

Retirement Funds Open to Private Credit Boom

Leading private credit firms, including Blackstone, KKR, and Blue Owl, are actively launching interval funds and partnering with retirement plan sponsors. Their goal is to integrate private credit products into 401(k)s and other retirement accounts, citing an over-reliance on volatile public stocks within individual retirement portfolios. This strategic move follows a presidential executive order from last year that aimed to open 401(k)s to alternative assets like private equity and credit, with firms now awaiting further guidance from the Labor Department.

The market for US credit interval vehicles has seen substantial growth, with net assets reaching approximately $92.7 billion in the third quarter of 2025, a stark increase from about $15 billion in 2020. This expansion is driven by the creation of evergreen funds designed to offer investors periodic liquidity. Firms are also collaborating with retirement plan providers like Voya Financial and Vanguard Group to facilitate access for their products.