If attempts to include private market exposure in defined contribution plans get off to a strong start, allocations to private investments could reach 6.1% of all DC plan assets, or $1 trillion by 2030, according to new research from Deloitte. Tender offer funds are likely to become the primary vehicle for adding private markets to DC plans, given that their characteristics mesh well with the limited liquidity and longer investment horizons such assets require.<\/p>\n
With U.S. private employer retirement plan AUM totaling $11.8 trillion at year-end 2025, even a modest shift in their investment menus toward private asset adoption would yield significant sums, according to Deloitte.<\/p>\n
The Trump administration has been pushing for private market investments to be made available to DC plan participants, with SEC Commissioner Mark Uyeda recently arguing that the benefits of including private markets in 401(k) plans outweigh the risks<\/a>. In March, the U.S. Department of Labor proposed new rules\u00a0on the use of alternative assets in 401(k) plans,<\/a> intended to help plan managers avoid litigation. The rules emphasize performing meticulous due diligence before making any allocations to private markets, considering factors such as fund performance, fees, liquidity mechanisms, valuation, performance benchmarks and the complexity of the product. Deloitte researchers view the proposed rules as a sign that private assets are being put \u201con equal footing on a fiduciary basis, with other investment options in U.S. DC plans.\u201d<\/p>\n