Incorporating Private Assets in 401(k)s May Enhance Long-Term Returns: Examples of Successful Implementation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 19 2025
0mins
Should l Buy AVD?
Source: CNBC
Potential Benefits of Private Assets: Recent studies suggest that incorporating private equity and private credit into 401(k) plans could enhance long-term returns, with Vanguard estimating a potential increase in retirement wealth by 7% to 22% with a 10% to 20% allocation to private assets.
Challenges of Accessibility and Performance: Despite the potential benefits, the accessibility of private assets for individual investors remains a concern, especially as many participants switch jobs and may not have access to the same private investments, which can lead to underperformance during market downturns.
Cautious Approach Recommended: Experts emphasize a measured approach to adding private assets to defined contribution plans, highlighting the importance of active management, transparency, and liquidity, while also ensuring that plan sponsors act in the best interest of participants.
Real-World Applications: Firms like JPMorgan and AllianceBernstein have successfully integrated private assets into their target-date funds, demonstrating improved risk-adjusted returns and providing participants with enhanced inflation sensitivity and income diversification.
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Analyst Views on AVD
About AVD
American Vanguard Corporation is a diversified specialty and agriculture products company, which develops and markets products for crop protection and management, turf and ornamentals management, and public and animal health. It conducts its business through its operating subsidiaries, including AMVAC Chemical Corporation (AMVAC) for its domestic business and AMVAC Netherlands BV (AMVAC BV) for its international business. AMVAC is a manufacturer of chemical, biological and biorational products that develops and markets solutions for agricultural, commercial and consumer uses. It synthesizes and formulates chemicals and ferments and extracts microbial products for crops, turf, ornamental plants, and human and animal health protection. These products, which include insecticides, fungicides, and biorationals, are marketed in liquid, powder, and granular forms. AMVAC BV sells products both directly and through its network of subsidiaries in various international territories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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