Cerulli: Up to One-Fifth of DC Plans Might Invest in Private Markets by 2035

Core Insights - Retirement plan sponsors are increasingly interested in adding private markets exposure to defined contribution (DC) plans, with estimates suggesting that up to 20% of DC plans may incorporate such exposure within a decade [2][3] Group 1: Interest Levels Among Plan Sponsors - A 2025 Cerulli survey found that 37% of retirement plan sponsors are very interested in understanding the pros and cons of incorporating private market assets, particularly among those with $250 million to $1 billion in assets, where interest peaks at 57% [3] - Interest in private markets is lower among small and medium-sized sponsors (30% to 37%) and those with over $1 billion in assets (35%), indicating that larger plans may already have some allocation to private market assets [4] Group 2: Regulatory Environment and Historical Context - The Trump administration has pushed for the inclusion of private market assets in retirement plans, with an executive order aimed at facilitating this for DC plan sponsors [5] - Previous surveys indicated that around 20% of plan sponsors had already discussed incorporating private market investments with their consultants or advisors [5] Group 3: Future Projections - Asset management and DC consultants predict that by 2030, 7% of plan sponsors will have a private markets allocation through target date funds or managed accounts, potentially rising to 17% by 2035 [6] Group 4: Product Development by Asset Managers - Several asset managers are developing products for private market investments in retirement accounts, including Apollo Global Management, State Street Global Advisors, Empower, Goldman Sachs Asset Management, and Blackstone Inc. [7]