Empower Survey Attests to Growing Adviser Interest in Private Markets
A survey from Empower, the second-largest retirement services provider in the nation by total participants, uncovers significant adviser interest in bringing private market investments into defined contribution portfolios.
Empower’s July 2025 survey of financial advisers found that 68% already utilize private market investments – including private equity, private real estate, and private credit – primarily in wealth-advised or high-net-worth accounts. Notably, 58% of advisers who utilize private market investments today would recommend them within retirement plans. That figure jumps to 75% among advisers who also serve pension or defined benefit plans, and 43% of advisers overall, signaling growing interest.
“Private markets are not a niche corner of the investment landscape,” said Edmund F. Murphy III, president and chief executive officer of Empower. “With most U.S. companies privately held and trillions of dollars from individuals already invested, expanding access to these markets through defined contribution plans presents a significant opportunity to enhance long-term retirement outcomes. Advisers have a crucial role to play in responsibly guiding that evolution.”
“Aligning the 401(k) system to private markets investing normalizes the U.S. retirement system with the rest of the international and defined benefit investing universe,” added Murphy.
The adviser survey was conducted online for one week last month and received 237 responses. Of those who responded, 97% advise on defined contribution plans, 42% advise on pension/defined benefit plans, 41% act as a lead financial adviser or registered investment adviser, and 22% act as investment/fiduciary consultant.
According to the advisers surveyed, the top perceived benefits of private market investments include: diversification (62%), higher return potential (48%), and lower correlation to public markets (48%).
However, advisers also cited liquidity (68%), fees (48%), and investment complexity (33%) as the main challenges to broader adoption.
Importantly, 66% of advisers indicated that greater ERISA/regulatory clarity would increase their likelihood of recommending private markets in retirement plans, signaling a readiness to engage once the policy environment evolves.
Last week, the president signed an executive order directing the U.S. Department of Labor to re-evaluate existing regulations to make it easier for 401(k) retirement plans to include alternative assets, such as real estate, cryptocurrency, and private equity – historically available to just institutional and high-net-worth, or accredited investors.
And just yesterday, as reported by AltsWire, the DOL officially rescinded the Biden-era supplemental statement that discouraged fiduciaries from including alternative assets in 401(k) retirement plans.
“As regulatory guidance develops, we see advisers playing a pivotal role in helping plan sponsors evaluate private investment options,” said Murphy. “Professionally managed accounts and prudent exposure limits can help mitigate risk while offering retirement savers access to a broader investment universe.”
Acknowledging that advisers are well-positioned to support the responsible integration of private market investments into defined contribution retirement portfolios, supporting participants in their pursuit of long-term financial security, Empower launched a May 2025 program to pave the way for private market investments to be included within defined contribution retirement plans.
With the initiative, private investments offered through fund managers and custodians – including Apollo, Franklin Templeton, Goldman Sachs, Neuberger Berman, PIMCO, Partners Group, and Sagard – can be implemented through collective investment trusts, or CITs, providing limited exposure to diversified pools of private equity, private credit and private real estate, a structure that is designed to provide liquidity protection and reduced fee exposure.
The program is designed to provide individuals with access to a broader range of investment options and enable them to further diversify their portfolios and potentially maximize their retirement savings.
As of June 30, 2025, Empower administers more than $1.8 trillion in assets for 19 million investors through the provision of retirement plans, advice, wealth management, and investments.
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