Voya Financial is adding a new private equity investment option to its nonqualified deferred compensation (NQDC) executive-benefit solution.
The Pomona Investment Fund (PIF), a registered investment vehicle providing access to private equity investing to accredited investors, is now part of the Voya Investment Management (Voya IM) product line and managed by Pomona Capital, an international private equity firm affiliated with Voya IM.
According to Voya, PIF seeks long-term capital appreciation primarily through the purchase of secondary interests in seasoned private equity funds, by making primary commitments to private equity funds and through direct investments in opportunities alongside private equity managers.
“With the support of fiduciaries, the right framework and investment vehicles, we believe that access to alternative solutions within a workplace savings plan could help Americans achieve their long-term retirement goals,” said Kirk Penland, SVP, nonqualified markets at Voya Financial, in a press release. “Giving participants in Voya’s NQDC benefit solution access to PIF represents another way we are focused on helping individuals achieve their long-term investment goals. We believe that PIF’s structure and focus will make for an ideal opportunity for those who want to benefit from long-term investments in private equity.”
“We believe PIF investors have the opportunity to invest in private equity in a risk-conscious strategy similar to sophisticated institutional investors around the world,” added Michael Granoff, CEO at Pomona Capital. “We’ve adapted the traditional institutional fund structure in an innovative way to meet the needs of individual investors, including those participating in executive-benefit solutions. We look forward to further working with our colleagues across Voya to help these individuals meet their retirement goals.”
Private equity is a type of alternative investment that consists of equity and debt investments in companies, infrastructure, real estate, and other assets. Traditionally dominated by large institutions, private equity has gained popularity in recent years. The Department of Labor (DOL) announced guidance permitting the asset class in 401ks in 2020, despite drawing mixed reactions from the move. The DOL later clarified its private equity stance, cautioning plan fiduciaries to tread lightly when considering private equity as an investment alternative in a typical 401k plan.
SEE ALSO:
- Episode 22: Ric Edelman on Private Equity in 401ks—Exciting But Complicated
- Department of Labor Clarifies Its Private Equity 401k Stance
- Private Equity Market Won’t See Boost from 401k Plans for Years: Report
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
