Capital Allocators – Inside the Institutional Investment Industry Understanding the 401(k) Market – Eric Mogelof, KKR (EP.464)
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Oct 9, 2025 
Eric Mogelof, Head of Global Client Solutions at KKR, shares his expertise on retirement markets and private investments. He discusses the $40 trillion landscape of defined benefit, defined contribution, and IRA plans. Mogelof highlights the growing appeal of alternatives in 401(k)s, the critical role of target date funds, and the barriers faced by traditional funds in adopting these investments. He predicts a gradual shift towards more private market allocations over the coming decade, especially in managed accounts and custom targets.
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Few Managers Dominate Off-The-Shelf Market
- Six large managers control most off-the-shelf target-date assets, making their choices pivotal.
- Fee sensitivity and litigation risk historically pushed sponsors to low-cost passive options.
Managers Won't Just Add Alts To Cheap Funds
- Asset managers are unlikely to retrofit existing low-fee target dates with higher-fee alternatives.
- Adoption will likely come via new target-date series or mapping participants to new funds, requiring sponsor engagement.
Account For Both Inflows And Outflows
- Remember DC sees large inflows but also meaningful outflows from retirements and rollovers.
- Plan sponsors and managers must plan for rollover flows into IRAs when estimating net new private capital.