Mesirow, an independent, employee-owned financial services firm, today announced the release of a new white paper from Mesirow Fiduciary Solutions, The Mesirow Approach to Private Assets in Defined Contribution Plans. The paper delivers a comprehensive, practical framework for evaluating and implementing private assets within defined contribution (DC) target date funds (TDFs), with a focus on improving long-term participant outcomes.

As plan sponsors and fiduciaries continue to explore ways to enhance diversification and return potential within DC plans, interest in private assets has grown rapidly. Historically a mainstay of defined benefit plans and endowments, private equity, private credit and private real estate are increasingly being considered for DC plans as product structures evolve to support greater liquidity, daily pricing and operational feasibility.

This new research outlines how Mesirow Fiduciary Solutions approaches private assets in a DC context, including how allocations can be thoughtfully integrated into multi-asset TDF glide paths. It examines the potential benefits and trade-offs of private assets, including diversification, return premiums and volatility considerations, as well as the unique fiduciary challenges associated with manager selection, valuation, liquidity and transparency.

“Our goal with this research is to move the conversation beyond theory and into implementation,” said Christopher O’Neill, PhD, CFA, CFP^®, FRM^®, ChFC^®, Managing Director, Chief Investment Officer and Director of Quantitative Research at Mesirow Fiduciary Solutions. “Private assets can play a meaningful role in defined contribution plans, but only when they are evaluated and monitored through a disciplined fiduciary framework designed specifically for DC participants and then sized appropriately within multi-asset class portfolios.”

The research details Mesirow Fiduciary Solutions’ asset-class-specific analysis of private equity, private credit and private real estate, including how each differs from its public market counterparts and how those differences influence asset allocation decisions. The paper also highlights Mesirow’s manager evaluation methodology, which emphasizes long-term data, vintage-year analysis and firm-level due diligence rather than reliance on limited product-level performance history.

In addition, the white paper demonstrates how incorporating private assets can potentially improve portfolio efficiency within a target date framework, while emphasizing the importance of prudent allocation limits, thoughtful carveouts from public assets and ongoing fiduciary oversight.

“Defined contribution plans demand a different mindset than institutional portfolios,” said Keith Gustafson, CFA, Managing Director of Asset Allocation and Retirement Income at Mesirow Fiduciary Solutions. “Our approach reflects nearly a decade of experience using private assets in DC settings and is grounded in the realities of participant behavior, liquidity needs and fiduciary responsibility.”

The white paper reinforces Mesirow Fiduciary Solutions’ commitment to helping plan sponsors, advisors and recordkeepers navigate evolving investment opportunities with rigor and clarity. By combining quantitative research, qualitative due diligence and real-world implementation experience, Mesirow Fiduciary Solutions aims to help fiduciaries make informed decisions as private assets continue to gain traction in the DC marketplace.

The full white paper, The Mesirow Approach to Private Assets in Defined Contribution Plans, is available at mesirow.com/fiduciary-solutions-private-assets.