Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTJames Brumley, The Motley FoolFri, September 4, 2026 at 10:50 AM GMT+2 4 min readYour employer's 401(k) plan could soon have a brand-new, never-before-offered kind of investment option -- funds that hold a healthy dose of privately owned (as opposed to publicly traded) businesses.That's the important takeaway from an announcement by investment manager BlackRock (NYSE: BLK) around the middle of this year. As the stock market's risks rise and its rewards shrink -- and as it grows more difficult to navigate -- BlackRock wants to give ordinary investors access to potentially better returns.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Here's what you need to know.The how and whyYour retirement savings account's exposure to privately held businesses will still be relatively limited, for the record. Initially, only target-date mutual funds overseen by Great Gray Trust will hold stakes in these enterprises, and even then, only 5% to 20% of these funds' capital will be allocated to private investments. And investors will only be able to access this narrow selection of target-date funds if their 401(k) plan's sponsor and administrator agree that adding this option is in employees' best interest.Image source: Getty Images.It shouldn't be terribly difficult to sell this idea to sponsors and administrators, however. BlackRock (which manages the iShares family of exchange-traded funds) notes that, on average, privately owned ventures return about 50 more basis points annually than stocks. Over the course of 40 years, that would make 401(k) account balances about 15% bigger than they'd otherwise be using nothing but conventional stock-based funds.Demand is growingAlthough this launch will be one of the first of its kind for 401(k) plans, access to private enterprises through publicly traded instruments is not unheard of. Business development companies like Main Street Capital (NYSE: MAIN) are a form of private equity and private credit, while Brookfield Asset Management's (NYSE: BAM) Brookfield Renewable Partners (NYSE: BEP) (NYSE: BEPC) offers its shareholders exposure to a basket of energy-related ventures that aren't accessible any other way. Hedge fund manager Bill Ackman is also planning a new venture fund that will offer ordinary, non-institutional investors access to companies that have not yet gone public, but eventually will.Still, these options remain relatively rare.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info