A surge of retail money flowing from 401(k) plans into private markets may force managers to value portfolios more frequently than ever, says KKR’s Eric Mogelof.
- Traditionally, private equity, real estate, and crypto funds are marked monthly or quarterly, masking volatility.
- As alternative assets attract retail retirement dollars, daily pricing could become standard, challenging the current 401(k) “chassis” built for public markets.
- This shift could democratize access to private markets but also raise disclosure and valuation demands.
- Mogelof predicts meaningful allocations from defined-contribution plans to private markets within the next decade.