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.

Despite the push towards retail accessibility, some critics, like Senator Elizabeth Warren, have raised concerns about private assets potentially underperforming public indexes and carrying higher fees. This has sparked debate about their appropriateness for average investors. Furthermore, the structure of these funds can create pressure on managers to deploy capital rapidly, potentially impacting investment quality and returns.