Private equity was previously off the menu in most cases because of uncertainty regarding fiduciary responsibilities by plan sponsors and liability surrounding the investments held by private companies. The change makes it so private equity activity contained within a broader fund complies with the investing standards governing publicly traded companies, EBSA said in the letter to D.C.-based Groom Law Group. “This letter should assure defined contribution plan fiduciaries that private equity may be part of a prudent investment mix and a way to enhance retirement savings and investment security for American workers,” EBSA acting director Jeanne Klinefelter Wilson said in a statement.

https://news.bloomberglaw.com/employee-benefits/benefits-overseer-oks-private-equity-investing-by-401k-holders