Monday, October 6, 2025

K, K, K : What Does Your 401 Say about PEUs?



Two articles highlight the current state of the private equity underwriter (PEU).  First, PEUs have proliferated exponentially since the early 2000's.  Like a Big Mac I consider them the plaque in our economic and political sclerosis.  

Second, all these PEUs bid up asset prices to fill out their funds and they need another step level rise and interested buyers to exit their positions.
 

Trump II, the digital Caligula, opened your 401(k) for private equity and private credit investments.  Many investment advisors have willingly pushed those products as appropriate for a portion of retiree account holdings.  We can quibble over the size of that allocation but it should be money that you can 100% lose.  

Why are so many rolling the dice in the PEU space?  Because it's been a profitable game for the secret fee charging PEU.  What happens when that shifts?  

Politicians Red & Blue love PEU and their new TechGod brethren.  Increasingly, more are one.  Trump II's latest deal shows TechGods and PEUs as new investors in Tik Tok USA.  With that tool, will the greed and leverage boys finally get their message across?  Time will tell, tick, tock, tick, tock...