There is growing support among financial advisers for the inclusion of private market investments in defined contribution portfolios, according to a new survey from Empower.

Empower’s July 2025 survey of financial advisers found that 68% already use private market investments, including private equity, private real estate and private credit, mostly in wealth-advised or high-net-worth accounts.

For advisers who already use private market investments, 58% reported that they would recommend them for defined contribution portfolios. That number increased to 75% among advisers who also work on pension or defined benefit plans and 43% of advisers overall, indicating a budding interest.

Edmund Murphy, president and CEO of Empower—which announced in July it would begin offering private equity investments in its 401(k) plans—said in a statement that private markets are not a niche corner of the investment industry.

“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,” Murphy said in a statement.

Empower’s announcement drew scrutiny from Senator Elizabeth Warren, D-Massachusetts. In two separate letters to the company, Warren asked for explanations of how Empower’s efforts to invest retirement savings in private funds will produce better outcomes for individuals.

Benefits and Challenges

According to the survey, the most-cited benefits of private market investments were diversification (62%), higher return potential (48%) and lower correlation to public markets (48%).

As challenges to broader adoption, advisers named liquidity (68%), fees (48%) and investment complexity (33%). Even with these concerns, Empower is adamant that there is a “clear willingness among advisors to explore thoughtful, risk-aware approaches such as professionally managed accounts and exposure limits.”

According to the report, two-thirds of respondents said greater regulatory clarity would make them more likely to recommend private markets in retirement portfolios, “signaling a readiness to engage once the policy environment evolves.”

Empower administers more than $1.8 trillion in assets for 19 million investors through its retirement plans, advice services, wealth management and investments.

The survey was conducted from July 15 through 22 and included 237 participants. Of the adviser participants, 97% advise on DC plans, 42% on pensions or defined benefit plans, 41% act as lead financial adviser or registered investment adviser, and 22% act as investment fiduciary consultants.