Basic Capital Secures $25M Series A Funding
401(k) platform Basic Capital, a fintech startup that allows participants to access private equity in retirement plans, has raised $25 million in Series A funding led by venture capital firms Forerunner and Lux Capital.
The investment will help the platform modernize and enhance its 401(k) offerings for employers and employees, the company states. It also hopes the funding will fast-track 401(k) adoption among employers who seeks alternatives in plans.
Basic Capital provides $4 of financing for every dollar in 401(k) and individual retirement account (IRA) contributions.
The news follows President Donald Trump’s new executive order that directs federal agencies to reconsider expanding access to alternative investments in retirement plans. Since the signing, the Department of Labor (DOL) rescinded guidance that discouraged usage of alternative funds in 401(k) plans.
“The engine of 401(k)s has not be significantly upgraded in 40 years,” said Abdul Al-Asaad, founder and CEO of Basic Capital, in a statement. “This new investment into Basic Capital, alongside policy changes emerging from Washington, D.C., represents a huge win for American workers as retirement plans get brought into the 21st century.”
Other backers of the platform include SV Angel, Box Group, Henry Kravis, HOF Capital, Inspired Capital, and Westbound Equity Partners.
“American innovation has generated extraordinary financial prosperity,” added Peter Herbert, cofounder and partner at Lux Capital. “But historically, federal regulation has prevented millions of American workers from accessing opportunities to build wealth.”
A recent study from Empower showed growing interest in private equity among financial advisors. The firm’s July 2025 survey found that 68% of advisors were already incorporating private market investments like private equity, private real estate, and private credit into wealth-advised or high-net-worth accounts. Another 58% said they would recommend these investments for retirement plans.
Still, while supporters of the order venerate it for facilitating increased access to private equity, critics say they worry the order could challenge established retirement plan safeguards, raise complexity, illiquidity, and costs in participant accounts, and jeopardize fiduciary duty for plan sponsors and retirement plan advisors.
SEE ALSO:
Borzi Sounds Alarm on Trump’s 401(k) Alternatives Order
DOL Rescinds Biden-Era Guidance Discouraging Use of Alts in 401(k)s
Advisors Increasingly Support Private Market Funds in 401(k) Plans
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
