$9 Trillion Is About to Knock on the Door of Alternative Assets — Here’s What That Means for Car Wash Investors
On August 7, 2025, President Trump signed an executive order that could fundamentally reshape U.S. retirement investing. For the first time, 401(k) plans—worth nearly $9 trillion and used by about 90 million Americans—may soon be able to invest in alternative assets like private equity, real estate, and even cryptocurrency.
For seasoned investors in the car wash industry, this isn’t just a headline. It’s a signal flare.
The Big Shift
Traditionally, retirement savers have been confined to stocks, bonds, and mutual funds, leaving alternative investments to institutional players and accredited investors.
The new order directs the Department of Labor and the SEC to revise rules, clarify guidance, and shield plan managers from litigation risks tied to higher fees, illiquidity, or leverage. In practice, it could open the floodgates for retirement capital to flow into sectors previously out of reach for everyday Americans.
What This Means for Car Wash Investing
Existing Investors: Expect More Demand for Quality Assets
If retirement-plan capital enters the private markets, stable, cash-flowing businesses with tangible assets—like express car washes—are going to be in higher demand. These assets check many boxes for institutional and semi-institutional capital:
Predictable recurring revenue streams (memberships and repeat visits)
Hard-asset backing in the form of land and infrastructure
Essential, non-discretionary service with year-round demand
When more money competes for a finite pool of prime locations and well-run operations, valuations tend to rise. That could mean stronger exit multiples for existing investors.
Future Investors: The Door May Be About to Open Wider
Until now, access to these deals often required accredited investor status, with strict income and net worth thresholds.
If retirement-plan participation in alternatives is allowed without each individual meeting those criteria (pending regulatory clarification), millions of additional investors could gain exposure to sectors like car washing—either directly through plan offerings or indirectly through funds and partnerships.
That could change the investor base for the entire industry.
📌 401(k) Investors: Do You Need to Be Accredited?
Probably not—at least not under the current thinking. In most cases, the 401(k) plan itself—not the individual saver—would be considered the “investor” from a regulatory perspective.
That means:
You wouldn’t need to qualify as an accredited investor for your retirement account to gain exposure to alternatives.
Your plan’s fiduciary or investment committee would decide whether to include those options.
The accreditation and due diligence requirements would rest on the plan and fund managers, not you personally.
This mirrors how pension funds and endowments invest in private equity—beneficiaries don’t need to be accredited for the plan to allocate.
Why it still matters for accredited investors today: You can invest directly in car wash deals now, without waiting for your 401(k) to adopt alternative options. Early positioning could mean owning the assets before retirement-plan money creates more competition.
Strategic Considerations for Accredited Investors
First-mover advantage matters. Retirement-plan capital could take time to mobilize, but by the time it does, the competition for top-tier sites and platforms will be fierce.
Partnership quality will be critical. Not all operators will scale well under institutional ownership. Investors should seek out teams with proven site selection, operational excellence, and brand differentiation.
Exit strategies could accelerate. Larger pools of capital may open more options for refinancing, recapitalization, or outright sale.
Why Car Washes Fit This Moment
The express car wash model offers a rare combination of real estate asset value and operational cash flow. It’s not just about clean cars—it’s about:
Location-driven moat: Prime sites create defensible market positions.
Scalable operations: Standardized processes mean consistent customer experience.
Membership-driven revenue: Predictable cash flow that investors love.
When retirement money is allowed to compete for the same assets, the economics can shift fast.
The Bottom Line
This policy shift could mark the start of a new era where stable, cash-flowing alternative assets move from niche to mainstream in retirement planning.
For existing investors, it’s a potential tailwind that could lift valuations and liquidity. For future investors, it’s a chance to enter before the tidal wave of retirement capital arrives.
The car wash sector is already on a strong trajectory. This regulatory change could be the accelerant. The question is—will you be positioned before the wave hits?
Henley Car Wash's investment team is actively deploying capital into high-quality express car wash assets through AquaSonic Car Wash Fund III, which is set to close at the end of this summer. If you’d like to understand how this policy shift could impact your portfolio—or how to secure a position before increased competition from retirement-plan capital—our team is ready to provide insight and deal access. Reach out to Henley’s investment team today to discuss opportunities before Fund III closes.
