Private Market Investments in Defined Contribution Plans

This guide outlines the growing trend of private market investments within defined contribution (DC) plans, highlighting the opportunities for plan sponsors and participants. It explains the nature of private market investments, which include private equity, private credit, and private real estate, and notes that these investments are typically not traded on public exchanges. The document details how recent regulatory changes and product innovations have expanded access to these investments for retirement savers. It also discusses the potential benefits of including private market investments in DC plans, such as enhanced diversification, inflation protection, and the potential for higher returns. Additionally, the guide addresses the characteristics and risks associated with private market assets, emphasizing the importance of understanding liquidity, fees, and investment complexity. Overall, the guide serves as a resource for financial professionals to navigate the evolving landscape of private market investments in retirement planning.