New Cerulli research finds plan sponsors show meaningful interest in private market assets within defined contribution (DC) plans, specifically when used within a target-date product or managed account. However, converting the interest of plan sponsors will take education, time and partnership with plan consultants and advisors to identify plan sponsor prospects, according to the latest Cerulli Edge — U.S. Retirement Edition.
Cerulli’s research finds that 37 percent of plan sponsors are very interested in learning more about the pros and cons of target-date and managed account option that allocate to private market assets. Much of this interest comes from the large market — plans with $250 million to $1 billion in assets, of which 57 percent of sponsors are very interested in learning more.
Asset managers and DC consultants predict that in five years, about 7 percent of plan sponsors will have a target-date or managed account that allocates to private market asse
