Guest Contributor: Heather Balley, Managing Director, Defined Contribution, AllianceBernstein

Background:

Private markets are gaining attention in defined contribution (DC) plans, as sponsors seek avenues to enhance diversification and long-term growth. Meanwhile, new investment structures are making private investments more accessible through professionally managed solutions. To better understand employees’ perspectives on private assets, AllianceBernstein’s 2026 Inside the Minds of Plan Participants survey explored their awareness, understanding and perceptions.

Findings:

Participants appear open to private markets, but knowledge of these investments is still limited. While 56% of respondents said they were at least somewhat familiar, only one in four said they understand private markets “well” or “very well.”

With familiarity comes support. Participants’ sentiment was largely positive after they received background information on private equity, private credit and private real assets—and their potential role in a retirement portfolio. Seven in 10 participants (71%) said private markets could have a place in their retirement investments—28% said “definitely” while another 43% supported their inclusion but had some questions about potential risks and costs. Participants also recognized their potential long-term value, with 79% saying private market investments could positively support their retirement outcomes.

These findings suggest that education is important as private markets become more accessible within DC plans. Professionally managed solutions, such as target-date funds, may also help. They put investment decisions—including private-market allocations—in the hands of experienced managers, while keeping the experience simple for participants.  

Bottom Line:

Private markets are increasingly drawing interest from plan sponsors as a potential tool for improving retirement outcomes, though there are still concerns around liquidity, fees and complexity. As investment structures, liquidity-management features and governance frameworks evolve, those barriers are being addressed. As we see it, with greater access and more education, private markets could play a larger role in helping DC plans improve long-term retirement outcomes.

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Insights shared by guest contributors are their own and do not represent the views of DCIIA or the RRC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.