Private Equity Tries A Makeover To Win 401(k) Savers

Snapshot: The private equity industry is mounting a coordinated PR and branding campaign as it prepares to sell products into 401(k) plans for the first time.

With support from President Trump, managers see a path into the $12 trillion defined contribution market and want to soften perceptions of risk and corporate raiding. The American Investment Council released a video and report arguing that private equity has strengthened public pensions and can boost retirement security, said CEO Will Dunham.

A new group, the Council for a Safe & Secure Retirement, is running TV ads and plans at least a seven-figure campaign to build support for 401(k) access and cast private-market managers as responsible stewards. The group’s day-to-day operations are managed by Narrative Strategies, a communications firm backed by Clarion Capital, underscoring the industry’s fingerprints on the push. 

Sentiment is mixed and poorly measured. One federal probe points out a 95 percent negative attitude toward private equity's involvement in healthcare, where a Schroders survey found 45 percent of workplace savers would allocate to private assets, up from 36 percent last year. Critics argue that rebranding may be too late.

Full story: WSJ