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Should Defined Contribution Plans Include Private Equity Investments?

Publication ,  Journal Article
Brown, GW; Crouch, KJ; Ghent, A; Harris, RS; Hochberg, YV; Jenkinson, T; Kaplan, SN; Maxwell, R; Robinson, DT
Published in: Financial Analysts Journal
January 1, 2022

This paper evaluates the pros and cons of including private equity fund investments in defined contribution plans. Potential benefits include higher returns and improved diversification as well as a relatively safe method for accessing investments previously only available to institutions and the very wealthy. Despite these enticing benefits, they need to be weighed against potential challenges and costs that may arise from creating this broader access to private funds. The complicated structure and uncertainty around the mechanism to provide required liquidity backstops may bring increased fees or even disrupt the private fund model.

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Published In

Financial Analysts Journal

DOI

ISSN

0015-198X

Publication Date

January 1, 2022

Related Subject Headings

  • Finance
  • 3502 Banking, finance and investment
  • 3501 Accounting, auditing and accountability
  • 1502 Banking, Finance and Investment
  • 1501 Accounting, Auditing and Accountability
 

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Brown, G. W., Crouch, K. J., Ghent, A., Harris, R. S., Hochberg, Y. V., Jenkinson, T., … Robinson, D. T. (2022). Should Defined Contribution Plans Include Private Equity Investments? Financial Analysts Journal. https://doi.org/10.1080/0015198X.2022.2093604
Brown, G. W., K. J. Crouch, A. Ghent, R. S. Harris, Y. V. Hochberg, T. Jenkinson, S. N. Kaplan, R. Maxwell, and D. T. Robinson. “Should Defined Contribution Plans Include Private Equity Investments?Financial Analysts Journal, January 1, 2022. https://doi.org/10.1080/0015198X.2022.2093604.
Brown GW, Crouch KJ, Ghent A, Harris RS, Hochberg YV, Jenkinson T, et al. Should Defined Contribution Plans Include Private Equity Investments? Financial Analysts Journal. 2022 Jan 1;
Brown, G. W., et al. “Should Defined Contribution Plans Include Private Equity Investments?Financial Analysts Journal, Jan. 2022. Scopus, doi:10.1080/0015198X.2022.2093604.
Brown GW, Crouch KJ, Ghent A, Harris RS, Hochberg YV, Jenkinson T, Kaplan SN, Maxwell R, Robinson DT. Should Defined Contribution Plans Include Private Equity Investments? Financial Analysts Journal. 2022 Jan 1;

Published In

Financial Analysts Journal

DOI

ISSN

0015-198X

Publication Date

January 1, 2022

Related Subject Headings

  • Finance
  • 3502 Banking, finance and investment
  • 3501 Accounting, auditing and accountability
  • 1502 Banking, Finance and Investment
  • 1501 Accounting, Auditing and Accountability