Request a Proposal

Private-Equity Investments in Defined Contribution Plans

The Department of Labor issued an Information Letter under ERISA regarding private equity investments within defined contribution plans. More specifically, the letter references the utilization of private equity as a component of a professionally managed multi-class vehicle structured as a target-date or target risk or balanced fund rather than a direct stand-alone investment. Considerations regarding the introduction of private equity are outlined within the letter, inclusive of the evaluation and monitoring of such investments as components of multi-class portfolios, to properly weigh the risks and benefits of inclusion.

www.plansponsor.com; June 3, 2020.