Understanding How DC Private Asset Solutions Stack Up

Private assets are moving from the margins into the core of DC plan design, shifting the conversation from whether to include them to how best to implement them. Professionally managed default solutions sit at the center of this evolution, with off‑the‑shelf target-date funds offering operational simplicity but limited flexibility in manager choice and asset-allocation design.

Custom target-date funds introduce greater tailoring, allowing sponsors to align private exposure with plan demographics, fee budgets and existing DB relationships, while retaining control over manager selection. Managed accounts promise the highest level of personalization for participants but come with significant operational complexity and dependence on recordkeeper capabilities.

For advisors and sponsors, success will hinge on balancing these tradeoffs so that access to private markets enhances outcomes without overwhelming governance or infrastructure.