Private Equity Groups Want a Piece of Your 401(k)

Private equity groups (PEGs) are having a moment. First, President Donald Trump's "Big Beautiful Bill" (now law) included a provision allowing them (through the companies they buy) to deduct more of the interest they pay. And now, it appears that PE giants, whose executives are among the president's biggest supporters, are inching closer to a goal they've long worked toward: getting a piece of the $12 trillion 401(k) retirement market. Image Source: Getty Images.A PEG is a firm that invests in private companies or purchases public companies and employs strategies to make them more profitable. The new companies are leveraged by debt, which helps explain why PEGs are so excited to receive the new, larger interest deduction gifted to them in Trump's megabill. Once they've restructured a company (usually within three to five years), the PEG sells the asset at a profit. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool