The Department of Labor's March proposal on 401(k) investments raised concerns about continuation vehicles, a fast-growing segment of the private markets secondaries market. While the 164-page document was largely welcomed by the industry, it singled out CVs as an area where conflicts of interest can arise, particularly around valuation.

Continuation vehicles allow investors to roll their positions into new funds rather than exiting. The DOL used CVs as an example to illustrate potential conflicts, but industry observers say this should not be interpreted as a signal to eliminate them from 401(k) plans entirely.

The proposal signals increased regulatory scrutiny of private market transactions in retirement accounts, though the door remains open for well-structured CVs that address valuation concerns.