The White House is has signed an executive order that could bring private market investment vehicles into 401(k) plans. For decades, private market investing was off-limits to most Americans, limited to institutions and ultra-wealthy individuals. This move marks a significant step toward integrating private investments into mainstream retirement planning strategies.

With public markets becoming increasingly volatile and companies staying private for longer periods, 401(k) investors have had limited access to some of the fastest-growing businesses. This order aims to change that.

401(k) plans have historically focused on public stocks and bonds, guided by fiduciary standards that prioritize liquidity and transparency. Private equity brings added complexity, including longer holding periods, distinct risk profiles, and different fee structures. But it also offers the potential for higher returns and greater diversification.

If implemented, this order would allow plan sponsors to include private equity allocations within diversified products, such as target-date funds, with exposure coming through structured vehicles managed by professional allocators.

The move would further accelerate the ongoing democratization of private markets, following a series of recent developments reshaping access:

• The House recently passed a bill to expand the accredited investor definition, making it easier for knowledgeable investors to participate.
• Platforms like SoFi now offer alternative products and have listed The Cashmere Fund, signaling demand from retail investors.
• Semiliquid structures like interval funds are gaining momentum, offering periodic liquidity while opening the door to private strategies.

Taken together, these changes point to a clear trend: private markets are no longer a gated community. They’re becoming part of everyday portfolios.

At Cashmere, we believe private market access should not be determined by status alone. It should be based on understanding, conviction, and choice. Bringing private equity into retirement plans is a bold move, and it will not come without challenges. Fees, education, and transparency remain critical issues.

But the direction is undeniable. Investors are looking for something beyond the traditional 60/40. They want exposure to growth, innovation, and early-stage opportunities that have historically been out of reach. They’re seeking portfolios that reflect where the economy is headed, and not just where it has been.

That’s why The Cashmere Fund exists: to make private market investing more accessible and aligned with the interests of today’s investors. Our presence on platforms like SoFi is part of that mission — and developments like this order, if executed thoughtfully, would further accelerate the shift toward broader inclusion.

—

This communication and its contents are for informational purposes only and do not constitute an offer to sell or a solicitation of an offer to buy shares of the Sweater Cashmere Fund (the “Fund”). The Fund is managed by Sweater Industries LLC (“Sweater”) as the investment adviser and Forma Cashmere LLC (“Forma Cashmere”) as the sub-adviser. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectus contains this and other information about the Fund and can be obtained by calling 1-888-577-7987 or by visiting the Fund's website at https://www.thecashmerefund.com. Please read the prospectus carefully before investing. All investments involve risks, and past performance is no guarantee of future results. The content herein is for informational and educational purposes only and should not be construed as investment advice or an offer or solicitation with respect to any products or services for any persons who are prohibited from receiving such information under the laws applicable to their place of citizenship, domicile, or residence.