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Escalent Report Shows Growing Interest in Private Market Investments Among 401(k) Plan Sponsors
When you think of a 401(k), most people picture index funds, not private equity. A fresh Escalent study, released on July 14, 2026, turns that assumption on its head.
The 2026 Retirement Planscape report surveyed more than 1,000 defined‑contribution plan sponsors and found that 44 % are actively looking to add private‑market assets to their portfolios. The pull is strongest among the largest employers and media companies, with 62 % of large plan sponsors and 50 % of media firms expressing curiosity.
Which private‑market classes are on the menu? Private credit and private equity each captured 75 % of interest, followed closely by private infrastructure at 73 %, venture capital at 72 %, and private real estate at 61 %.
Plan sponsors cited lower fees (35 %) and diversification or downside‑risk management (33 %) as the top reasons for their interest. The motivations shift with plan size: midsize plans highlight inflation protection, large plans emphasize diversification and risk management, and mega plans focus on liquidity.
The surge comes amid a regulatory storm. The Department of Labor is still waiting to release final guidance after a 60‑day comment period that drew nearly 45,000 submissions from industry participants. Those rules will clarify how far private‑market assets can travel within DC plans. The study notes that a former executive order issued by President Donald Trump directed federal agencies, including the DOL, to review and potentially revise earlier guidance on these investments.
Not all sponsors are ready to jump in. Among large plans that are not interested, 49 % point to weak participant demand as the main barrier. High fees and expenses also loom large.
Participant sentiment, however, looks more favorable. A separate survey by the Wall Street Journal, using the Harris Poll, found that while 40 % of respondents had never heard of private credit funds, 59 % expressed a general interest in investing in them. An overwhelming 90 % said they would allocate a portion of their retirement savings to private investments.
Escalent’s analysis suggests sponsors are in an exploratory phase. Lead author Sonia Davis noted that “plan sponsors now have greater flexibility in deciding which asset classes are advantageous to their plans, and that’s led to an influx of interest in alternatives.” She added that recordkeepers and DC investment managers will need to focus on education to translate sponsor curiosity into actual adoption.
The findings arrive as employers reassess their retirement offerings. The combination of regulatory uncertainty, evolving participant preferences, and the promise of lower fees makes private‑market assets an attractive option for many plan sponsors.
In the coming months, the DOL is expected to release its final guidance, which will likely shape the pace at which plan sponsors incorporate private‑market investments. Until then, sponsors will continue to evaluate the fit of these assets within their portfolios, balancing participant demand against cost and regulatory considerations.
The Escalent report underscores a broader trend toward diversification in retirement plans and highlights the importance of clear regulatory direction for the continued growth of alternative investments in the U.S. retirement market.
The 2026 Retirement Planscape report surveyed more than 1,000 defined‑contribution plan sponsors and found that 44 % are actively looking to add private‑market assets to their portfolios. The pull is strongest among the largest employers and media companies, with 62 % of large plan sponsors and 50 % of media firms expressing curiosity.
Which private‑market classes are on the menu? Private credit and private equity each captured 75 % of interest, followed closely by private infrastructure at 73 %, venture capital at 72 %, and private real estate at 61 %.
Plan sponsors cited lower fees (35 %) and diversification or downside‑risk management (33 %) as the top reasons for their interest. The motivations shift with plan size: midsize plans highlight inflation protection, large plans emphasize diversification and risk management, and mega plans focus on liquidity.
The surge comes amid a regulatory storm. The Department of Labor is still waiting to release final guidance after a 60‑day comment period that drew nearly 45,000 submissions from industry participants. Those rules will clarify how far private‑market assets can travel within DC plans. The study notes that a former executive order issued by President Donald Trump directed federal agencies, including the DOL, to review and potentially revise earlier guidance on these investments.
Not all sponsors are ready to jump in. Among large plans that are not interested, 49 % point to weak participant demand as the main barrier. High fees and expenses also loom large.
Participant sentiment, however, looks more favorable. A separate survey by the Wall Street Journal, using the Harris Poll, found that while 40 % of respondents had never heard of private credit funds, 59 % expressed a general interest in investing in them. An overwhelming 90 % said they would allocate a portion of their retirement savings to private investments.
Escalent’s analysis suggests sponsors are in an exploratory phase. Lead author Sonia Davis noted that “plan sponsors now have greater flexibility in deciding which asset classes are advantageous to their plans, and that’s led to an influx of interest in alternatives.” She added that recordkeepers and DC investment managers will need to focus on education to translate sponsor curiosity into actual adoption.
The findings arrive as employers reassess their retirement offerings. The combination of regulatory uncertainty, evolving participant preferences, and the promise of lower fees makes private‑market assets an attractive option for many plan sponsors.
In the coming months, the DOL is expected to release its final guidance, which will likely shape the pace at which plan sponsors incorporate private‑market investments. Until then, sponsors will continue to evaluate the fit of these assets within their portfolios, balancing participant demand against cost and regulatory considerations.
The Escalent report underscores a broader trend toward diversification in retirement plans and highlights the importance of clear regulatory direction for the continued growth of alternative investments in the U.S. retirement market.
