Opening Private Equity Access in 401(k)s Could Boost Louisiana Businesses and Workers

Louisiana businesses and retirement savers may soon see new opportunities thanks to a federal push to expand access to private equity and private credit in 401(k) plans.

President Donald Trump recently signed an executive order directing regulators to make it easier for retirement plans to include private market investments. The change could open the door for millions of workers, including more than a million Louisianans with 401(k)s, to invest in the same types of private funds that public pensions and universities have relied on for decades.

For Louisiana, the impact could be significant. Private equity already supports more than 150,000 jobs in the state, paying out over $13 billion in wages and benefits and contributing $24 billion to the state’s GDP. Companies backed by private equity and private credit include many small and mid-sized businesses that are the backbone of local communities. These investments have helped local manufacturers expand, retailers modernize, and family-owned businesses scale into regional employers.

Allowing retirement savers to share in that growth is seen by many as a way to keep 401(k) portfolios competitive and diversified. While the number of publicly traded companies has fallen sharply over the past three decades, private markets have grown rapidly and now house many of the fastest-growing companies. Louisiana workers who rely on their 401(k) as their main retirement vehicle would finally gain access to these growth opportunities, delivered through professionally managed funds that spread risk across multiple companies.

Business leaders argue that this reform could create a virtuous cycle: more retirement capital flowing into private markets would mean more investment in Louisiana companies, fueling expansion and job creation. At the same time, employees investing through their 401(k) plans would have a chance to benefit directly from that growth, just as pensioners already do.

As policymakers finalize the details, Louisiana businesses and workers stand to gain from a system that better aligns local investment with local growth. Expanding retirement plan options to include private equity and private credit could strengthen Louisiana’s economy while giving families stronger tools to build financial security for the future.