Client Alert: DOL Outlines Path for 401(k) Plans to Invest in Private Equity

The Department of Labor (“DOL”) issued an Information Letter on June 3, 2020 outlining its views on how 401(k) plans may include private equity investments in designated investment alternatives. The DOL indicated that a plan fiduciary of a 401(k) plan may offer an asset allocation fund with a private equity component in a manner consistent with the requirements of Title I of the Employee Retirement Income Security Act of 1974 (“ERISA”).