Private Equity Isn’t for Every Retirement Plan, Advisers Say

Investing in private equity is best left to larger corporate retirement plans that have the bandwidth and resources to properly monitor the complex assets, benefits professionals said.

Larger plans can comb through financial records and debrief participants about the risks and rewards, and therefore could be more likely to capitalize on the administration’s decision to put private equity offerings on the menu for 401(k) holders.

But smaller plans that outsource benefits decisions to third-party administrators or financial consultants should think hard before introducing more uncertainty, attorneys and advisers say.

“There are many individual private investments that are likely inappropriate for ...