Private equity in 401(K) plans – a trillion dollar opportunity?

Abstract

Purpose

To explain recent regulatory guidance for different types of stakeholders, including asset managers, fund complexes, and institutional investors.

Design/methodology/approach

Summary of recent regulatory guidance and explanation for different types of stakeholders, including asset managers, fund complexes, and institutional investors.

Findings

While the U.S. Department of Labor’s (DOL’s) letter does not open the door to direct access to Private Market Investments by 401(k) plan participants, it does provide a framework for the expanded use of private equity and, we believe, other types of Private Market Investments in managed asset allocation funds such as target date funds.

Originality/value

Practical guidance from experienced asset management and investment funds and ERISA lawyers.

Citation

Sichel, R.L., Wade, W.P., Delaney, R.E., Zanotti, K.M. and McGrath, M. (2020), "Private equity in 401(K) plans – a trillion dollar opportunity?", Journal of Investment Compliance, Vol. 21 No. 2/3, pp. 85-91. https://doi.org/10.1108/JOIC-07-2020-0008