4 Statistics Every Fund Manager Should Know About Retirement Capital

For many fund managers, capital raising efforts focus on high-net-worth individuals, family offices, RIAs, and institutional investors. Yet one of the largest sources of investable capital often goes overlooked: retirement accounts.

As alternative investments continue to gain popularity, understanding the retirement account market has become increasingly important for sponsors looking to diversify their investor base and access new sources of capital.

Here are five statistics every fund manager should know about retirement capital, and why they matter to your fundraising strategy.

1. There Are Nearly $50 Trillion in Retirement Assets 

According to industry estimates, Americans hold nearly $50 trillion in retirement assets across various account types, including 401(k)s, IRAs, pension plans, and other qualified retirement accounts. 

For fund managers, this represents an enormously addressable market. While many sponsors focus their fundraising efforts on taxable investment dollars, retirement assets make up a significant portion of an investor’s overall wealth. 

The reality is simple. If you’re not considering retirement account investors as part of your capital-raising strategy, you may be overlooking one of the largest pools of investment capital available. 

2. Approximately $19 Trillion Is Held in IRAs 

Of the nearly $50 trillion in retirement assets, approximately $19 trillion resides in Individual Retirement Accounts (IRAs). 

Why is this important? 

Unlike many employer-sponsored retirement plans, IRAs often provide investors with greater flexibility when it comes to investment choices. Through self-directed retirement account structures, investors can allocate retirement dollars to a wide range of alternative investments, including: 

• Private equity 

• Real estate funds 

• Venture capital 

• Private credit 

• Syndications 

• Hedge funds 

For alternative investment sponsors, IRA investors may represent a highly accessible segment of the retirement market. 

3. Americans Change Jobs Every 3–4 Years 

The average American changes jobs every three to four years. While this may seem unrelated to fundraising, it creates a significant opportunity. 

When employees leave a company, they often have the option to roll over retirement assets from an employer-sponsored 401(k) into an IRA. These rollover events frequently prompt investors to reevaluate their portfolios and explore new investment opportunities. 

For fund managers, this means there is a continual flow of investors who are actively making decisions about where retirement assets should be allocated. 

Sponsors who educate investors about their options during these transition periods may be well-positioned to attract new capital. 

4. Most Retirement Assets Remain Concentrated in Public Markets 

Despite growing interest in alternatives, the vast majority of retirement assets remain invested in traditional public market investments such as: 

• Mutual funds 

• ETFs 

• Individual stocks 

• Bonds 

This concentration creates an opportunity for alternative investment sponsors to help investors think more broadly about portfolio construction. 

Many investors have heard the importance of diversification for years. However, diversification often extends beyond simply owning multiple stocks or mutual funds. Alternative investments can provide exposure to different asset classes, strategies, and risk-return profiles that may complement traditional holdings. 

For fund managers, this creates an opportunity to position alternative investments as part of a broader diversification conversation. 

The Opportunity for Fund Managers 

The retirement account market continues to represent one of the largest and most underutilized sources of capital available to alternative investment sponsors. 

For fund managers willing to educate investors and build a process for accepting retirement account investments, the opportunity is significant. 

As alternative investing continues to move into the mainstream, sponsors who understand how to engage retirement account investors may gain a meaningful competitive advantage in the years ahead. 

Interested in learning how your fund can begin accepting retirement account investments? Watch our full Fireside Chat or contact the Equity Institutional Services team to learn more. 

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