Today, more and more asset managers are looking for creative ways to connect individual investors with private markets.1 A lot of that energy is focused on U.S. retirement accounts: a $12 trillion pool already earmarked for long-term investing.1
In some ways, private markets and retirement accounts seem like a natural fit. Private market investments are illiquid — and so are retirement assets, which you generally can’t access until age 59½. 2 They also tend to run on long timelines, often a decade or more, which fits the horizon of retirement investors.
In May 2025, the push to bridge these worlds saw a big development. Empower, one of the country’s largest 401(k) providers, announced plans to allow certain retirement portfolios to include private market investments. 3
For those who opt in, allocations won’t be self directed. They’ll be made on the investor’s behalf, through Empower’s managed account service. 4
It’s an important moment, but it raises questions. Do most investors even want private market exposure in their retirement portfolios? And if they do, is access enough — or are they looking for control over the specific funds and deals their capital goes into? Perhaps most importantly: if your 401(k) isn’t with Empower, then what?
Here are some of the key questions we’re hearing as private markets make their way into more retirement portfolios.
I have a 401(k). Can I now invest in private markets?
Not necessarily.
First, Empower’s new offering only applies to 401(k) plans it administers. While a few smaller providers have launched these offerings, the major 401(k) players have yet to follow suit. That means if your plan is with Fidelity or Vanguard, for instance, this announcement doesn’t affect your retirement account. 5
Second, even if your 401(k) is with Empower, you still won’t get access by default. Your employer has to opt in to the new private markets feature — and so far, only five have. If they do, you’d also need to enroll in Empower’s managed account service. From there, an adviser or algorithm would determine how much of your portfolio gets allocated to private investments. 6
In short: unless your 401(k) is with Empower or one of the few other smaller providers, your employer has opted in, and you’ve enrolled in a managed account, you won’t have access to private markets through your plan.
My 401(k) is with Empower. Am I required to invest in private markets?
No, you’re not required to invest in private markets just because your 401(k) is with Empower.
Even if your employer opts in, you can stick with a traditional allocation of stocks and bonds if that better fits your investment goals and risk tolerance.
I want to invest my retirement assets in private markets, but I also want control over the specific offerings I invest in. Is that possible with Empower?
As it stands, Empower’s new offering doesn’t give you control over your private market allocations.
The offering is an add-on to certain 401(k) plans — employer-sponsored accounts with investment options selected or approved by the plan sponsor. In this case, Empower is making private market investments available through managed accounts, where a financial advisor decides how much of your portfolio gets allocated to a pooled fund managed by firms like Apollo or Partners Group. You don’t choose the fund, and you don’t select individual assets. 7
You get access to private markets, but not the ability to self-direct your retirement portfolio.
If I want both access and control, what are my options?
A self-directed IRA (SD-IRA) is an individual retirement account that gives you access to a wider range of private market assets.
It’s not tied to your employer, and as the name suggests, an SD-IRA puts the decisions in your hands. You choose what to invest in, when, and how much. That could mean investing in a single commercial property, investing in a private credit fund through a platform like Crowd Street, or even backing a startup. 8
Both Empower’s 401(k) and a self-directed IRA (SD-IRA) offer exposure to private markets, but they operate under very different models. Empower’s is employer-controlled and advisor-managed, while an SD-IRA is individually directed. However, investors should consider all features including other differences between SD-IRA's and 401(k)s prior to deciding which account type is right for them.
Are private markets just a way to prop up companies that aren’t good enough to go public?
Not at all. It’s a common misconception that private markets are full of second-tier companies that couldn’t make it in the public sphere.
In reality, many of the world’s most valuable and fastest-growing companies — like SpaceX and OpenAI — are choosing to stay private longer. 9 Generally it’s not because they can’t go public, but because they don’t have to. Since the 1990s, the number of publicly listed U.S. companies has dropped by more than half, while private equity–backed businesses have grown over 500%. 10
Private markets today offer access to large pools of capital, institutional investors, and deal structures that may better align with a company’s goals. Going public can bring added regulatory requirements, increased transparency, and pressure to meet quarterly expectations. The decision to go public or remain private often reflects a company’s stage, strategy, or investor base — not necessarily its quality or long-term potential. 11
What risks should I be aware of when investing in private markets?
Private market investments aren’t for everyone. They come with unique risks that differ from public stocks and bonds, and it’s important to understand them before committing capital — whether through a 401(k), SD-IRA, or another channel.
These risks include illiquidity, less transparency and oversight than public market counterparts, longer time horizons, and higher minimums. For a full breakdown, we recommend reviewing guidance from the Financial Industry Regulatory Authority (FINRA), which works to protect investors and ensure the integrity of the markets.
Like all investments, private assets come with tradeoffs. What matters is having a clear-eyed strategy that aligns with your goals, timeline, and risk tolerance.
Can I invest through an SD-IRA with Crowd Street?
Yes, Crowd Street partners with IRA custodians to give accredited investors access to private market opportunities through a self-directed IRA.
Investors can use an SD-IRA to invest in private credit funds, private equity funds, venture capital, commercial real estate funds, and individual commercial real estate deals listed on the platform. You can review available offerings, identify those that align with your goals and risk tolerance, and submit offers through your SD-IRA.
That said, not all investment managers on Crowd Street accept SD-IRA capital. In some cases, using retirement funds can create additional administrative or reporting requirements that fall outside a manager’s standard processes.
For more details on how to invest with an SD-IRA through Crowd Street, visit this page.
1 https://www.barrons.com/articles/retirement-401k-private-equity-62be9228
2 https://www.fidelity.com/viewpoints/financial-basics/taking-money-from-401k
8 https://www.investopedia.com/terms/s/self-directed-ira.asp
10 https://www.jpmorganchase.com/ir/annual-report/2023/ar-ceo-letters
11 https://www.morganstanley.com/atwork/articles/companies-staying-private-longer
