Reported about 15 hours ago
The private equity industry is seeking to include funds in 401(k) plans that could provide better returns for retirement savers, but these returns come with complexities that may confuse investors. With new executive orders pushing for broader access to alternative investments, savers now face obstacles like understanding the obscure internal rate of return (IRR) and evaluating private market performances compared to traditional benchmarks. This move raises concerns about transparency and the genuine value of these investments, especially since the assessment of private asset returns relies heavily on subjective valuation practices.
Source: YAHOO