July 14, 2025

Warren Doubles Down Seeking Answers from Empower on Threats to Americans' 401(k)s from Private Equity and Private Credit

“Unfortunately, your response failed to meaningfully explain how Empower’s efforts to invest retirement savings in private funds–which often yield returns on-par with the public market while charging exorbitant fees–will [help your members].”

Text of Letter (PDF)

Washington, D.C. – U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, wrote to Edmund Murphy, President and CEO of Empower, following up on her initial letter after Mr. Murphy’s response failed to answer how Empower’s plans to invest retirees’ savings in the private market, including accompanying partnerships with private firms, fees, and incentive structures, will help its members. She requested answers to her original questions by July 25, 2025.

“Studies suggest that private market investments have consistently underperformed as compared to publicly traded indices. Despite these underwhelming results, private funds often charge up to 20 times as much in fees as mutual funds. At the same time, private funds have weak transparency, liquidity, and compliance requirements and lack investor protections,” wrote Ranking Member Warren. 

The Ranking Member continued: “Like you, I support providing retirees with robust market access and welcome the opportunity to explore policies that could spur the entrance of new companies into public markets. I also, however, believe strongly that the companies responsible for investing Americans’ retirement savings should do so in a manner that makes American workers – not private funds – the most money possible. Private fund options for the sake of private fund options – if those funds do not meaningfully outperform public companies and charge exorbitant fees – is not a sufficient reason to discount the risk associated with investing in private firms, including private equity funds.”

Ranking Member Warren concluded by calling on Empower to respond to its original questions: “Rather than share a survey depicting support for investment in private markets, I ask again that you answer my questions on how venturing into the private markets will affect your clients by Friday, July 25, 2025.”

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