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The private equity industry had a substantial stake in the outcome of the 2024 election. By one estimate, industry leaders spent over $231 million on different races, with more money going to Republicans than in years past. The industry is looking for a return on this investment – and one major goal is to get access to retirement funds.

Many analysts expect to see policy changes in the second Trump term that will benefit the private equity industry, and the weakening of Biden-era regulations and oversight over the financial sector. As the Wall Street Journal reported, “Industry insiders expect the incoming Trump administration to take a more pro-business policy stance, cut taxes and ease regulations, which would provide a boost to dealmaking and corporate profits.” One of the more closely watched changes is at the Federal Trade Commission, which has been notably aggressive when it comes to addressing corporate power under the leadership of commissioner Lina Khan. She has been a favorite target of big business, so Wall Street is cheering the change of course, predicting more dealmaking and corporate consolidation in the near future.

Meanwhile, Reuters reported that industry leaders reached out to the incoming administration shortly after the election with a wish list: “The private fund industry is focused on easing an aggressive agenda from the Securities and Exchange Commission, as well as preserving the tax treatment of carried interest so it continues to be taxed as capital gains and not ordinary income.”

There were also some personnel announcements linked to private equity. The most prominent was Trump’s selection of billionaire investor Stephen Feinberg as deputy defense secretary. Feinberg is the co-chief of Cerberus Capital Management, a company that has had links to major military contractors. More recently, Cerberus has attracted criticism over the collapse of the Steward Health Care company, which it owned for a decade. The company also owns the grocery giant Albertsons, which it unsuccessfully tried to merge with rival Kroger.

There are also distinct areas of private equity investment that could thrive under Trump. Mass deportation, for instance, would require an expansion of detention facilities and other infrastructure – a sector where many of the companies involved are owned by private equity firms. And Bloomberg recently reported that there is a “wave of private equity and investment firms channeling clout and money into bolstering US defense, aerospace companies and government contractors,” with the expectation that Trump administration’s goals of slashing government spending will lead to new opportunities for private equity-backed technology firms.

The industry has broader goals in mind as well. As University of Chicago law professor William A. Birdthistle wrote, “One of the industry’s primary goals now is to break down the bulwark separating private fund investments from the life savings of ordinary Americans.” The private equity industry sees the election as delivering this important shift, as Bloomberg noted: “The Trump administration is expected to be far more open to loosening regulations than the Biden administration, which wouldn’t endorse placing private equity investments in 401(k) plans.”

During the end of the previous Trump administration, officials signaled their support for adding private equity investments to retirement funds. This time around, one should expect similar moves to happen much sooner.