Should defined contribution plans include private equity investments
This paper evaluates the pros and cons of including private equity fund investments in defined contribution plans. Potential benefits include higher returns and improved diversification as well as a relatively safe method for accessing investments previously only available to institutions and the ve...
| Main Authors: | , , , , , , , , |
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| Format: | Journal article |
| Language: | English |
| Published: |
Taylor and Francis
2022
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| _version_ | 1797112763459305472 |
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| author | Brown, GW Crouch, KJ Ghent, A Harris, RS Hochberg, YV Jenkinson, T Kaplan, SN Maxwell, R Robinson, DT |
| author_facet | Brown, GW Crouch, KJ Ghent, A Harris, RS Hochberg, YV Jenkinson, T Kaplan, SN Maxwell, R Robinson, DT |
| author_sort | Brown, GW |
| collection | OXFORD |
| description | This paper evaluates the pros and cons of including private equity fund investments
in defined contribution plans. Potential benefits include higher returns and improved
diversification as well as a relatively safe method for accessing investments previously
only available to institutions and the very wealthy. Despite these enticing benefits,
they need to be weighed against potential challenges and costs that may arise from
creating this broader access to private funds. The complicated structure and
uncertainty around the mechanism to provide required liquidity backstops may bring
increased fees or even disrupt the private fund model. |
| first_indexed | 2024-03-07T08:28:32Z |
| format | Journal article |
| id | oxford-uuid:fe67437a-6b0d-4d36-b86b-9ca305f8d4f5 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T08:28:32Z |
| publishDate | 2022 |
| publisher | Taylor and Francis |
| record_format | dspace |
| spelling | oxford-uuid:fe67437a-6b0d-4d36-b86b-9ca305f8d4f52024-02-26T10:32:01ZShould defined contribution plans include private equity investmentsJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:fe67437a-6b0d-4d36-b86b-9ca305f8d4f5EnglishSymplectic ElementsTaylor and Francis2022Brown, GWCrouch, KJGhent, AHarris, RSHochberg, YVJenkinson, TKaplan, SNMaxwell, RRobinson, DTThis paper evaluates the pros and cons of including private equity fund investments in defined contribution plans. Potential benefits include higher returns and improved diversification as well as a relatively safe method for accessing investments previously only available to institutions and the very wealthy. Despite these enticing benefits, they need to be weighed against potential challenges and costs that may arise from creating this broader access to private funds. The complicated structure and uncertainty around the mechanism to provide required liquidity backstops may bring increased fees or even disrupt the private fund model. |
| spellingShingle | Brown, GW Crouch, KJ Ghent, A Harris, RS Hochberg, YV Jenkinson, T Kaplan, SN Maxwell, R Robinson, DT Should defined contribution plans include private equity investments |
| title | Should defined contribution plans include private equity investments |
| title_full | Should defined contribution plans include private equity investments |
| title_fullStr | Should defined contribution plans include private equity investments |
| title_full_unstemmed | Should defined contribution plans include private equity investments |
| title_short | Should defined contribution plans include private equity investments |
| title_sort | should defined contribution plans include private equity investments |
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