{"id":242427,"date":"2026-05-05T11:44:51","date_gmt":"2026-05-05T15:44:51","guid":{"rendered":"https:\/\/ibkrcampus.com\/campus\/?p=242427"},"modified":"2026-05-05T11:47:17","modified_gmt":"2026-05-05T15:47:17","slug":"should-your-mom-have-private-equity-in-her-401k","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/ibkr-quant-news\/should-your-mom-have-private-equity-in-her-401k\/","title":{"rendered":"Should Your Mom Have Private Equity in Her 401K?"},"content":{"rendered":"\n<p><em>The article &#8220;Should Your Mom Have Private Equity in Her 401K?&#8221; was originally published on <a href=\"https:\/\/alphaarchitect.com\/private-equity-performance\/\">Alpha Architect<\/a> blog.<\/em><\/p>\n\n\n\n<p>Private equity has long been marketed as the golden ticket. Higher returns. Exclusive access. Institutional-grade investing. The pitch now is simple. Bring it to retail portfolios, including 401(k)s. Critics argue that once you account for fees, illiquidity, and realistic fund selection, much of that advantage disappears. This paper pushes back on the narrative. It shows that for most investors, private equity may not deliver the promised edge. And more importantly, it proposes a simpler, more liquid way to access the same economic exposure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-\"><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nori\u00a0Gerardo Lietz<\/li>\n\n\n\n<li>Harvard working paper series, 2026<\/li>\n\n\n\n<li>A version of this paper can be found\u00a0<a href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=6304280&amp;utm_source=news.theideafarm.com&amp;utm_medium=newsletter&amp;utm_campaign=mom-s-401-k&amp;_bhlid=be9bd0e5dcebf35f992515d7fb9cfe4b05646aed\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li>\n\n\n\n<li>Want to read our summaries of academic finance papers? Check out our\u00a0<a href=\"https:\/\/alphaarchitect.com\/category\/architect-academic-insights\/academic-research-insight\/\" target=\"_blank\" rel=\"noreferrer noopener\">Academic Research Insight<\/a>\u00a0category<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-key-academic-insights\">Key Academic Insights<\/h2>\n\n\n\n<p><strong>Private equity outperformance is less reliable than advertised<\/strong><br>While top-quartile PE funds historically outperformed public markets, persistence has largely disappeared. Selecting future winners is extremely difficult. Most investors are likely to earn median returns rather than the headline top-tier outcomes.<\/p>\n\n\n\n<p><strong>Recent performance shows little to no alpha versus public markets<\/strong><br>When using more realistic methodologies that align cash flows between PE and public&nbsp;<a href=\"https:\/\/alphaarchitect.com\/has-benchmarking-made-us-bad-investors\/\" target=\"_blank\" rel=\"noreferrer noopener\">benchmarks<\/a>, excess returns largely vanish. Over the past 15 years, private equity has delivered close to zero or even negative alpha relative to the S&amp;P 500.<\/p>\n\n\n\n<p><strong>Fees materially erode returns, especially for retail investors<\/strong><br>Institutional PE returns are already net of significant fees. Retail access layers on additional costs from wealth managers, fund-of-funds structures, and distribution channels. These extra fees can meaningfully dilute returns, often by double-digit percentages annually.<\/p>\n\n\n\n<p><strong>Fund-of-funds structures significantly underperform<\/strong><br>A common access route for retail investors is through intermediaries. Historically, these structures have delivered persistent underperformance relative to both direct PE investments and public markets, largely due to fees and allocation inefficiencies.<\/p>\n\n\n\n<p><strong>Liquidity risk is real and often misunderstood<\/strong><br>Private equity investments can lock capital for 10\u201315 years. While some products promise periodic liquidity, redemption can disappear during market stress. Retail investors, unlike institutions, face real-life liquidity needs that make this constraint more problematic.<\/p>\n\n\n\n<p><strong>Industry dynamics suggest future returns may be lower<\/strong><br>The PE industry has grown dramatically, with trillions in assets and large amounts of uninvested capital. High entry valuations and slower exits create headwinds for future returns, making historical performance less relevant going forward.<\/p>\n\n\n\n<p><strong>Publicly listed PE firms may offer a better<\/strong><br>A basket of publicly traded PE firms has historically outperformed their own flagship private funds over 5- and 10-year horizons. This approach provides similar economic exposure with lower costs and full liquidity<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-practical-applications-for-investment-advisors\">Practical Applications for Investment Advisors<\/h2>\n\n\n\n<p><strong>Focus on implementation, not just asset class labels<\/strong><\/p>\n\n\n\n<p>The question is not whether private equity is attractive in theory. It is whether clients can access it efficiently. In most cases, implementation costs and constraints dominate the outcome.<\/p>\n\n\n\n<p><strong>Be skeptical of \u201cdemocratization\u201d narratives<\/strong><br>Retail access often comes with additional layers of fees and complexity. What looks like inclusion may actually be value transfer from investors to intermediaries.<\/p>\n\n\n\n<p><strong>Prioritize liquidity as a core portfolio feature<\/strong><br>Individual investors face unpredictable cash needs. Avoid locking significant portions of portfolios into illiquid structures unless there is a clear and compelling payoff.<\/p>\n\n\n\n<p><strong>Consider listed alternatives for exposure<\/strong><br>Publicly traded PE firms provide exposure to the economics of private markets without the operational burden. This can replicate many benefits while avoiding key drawbacks.<\/p>\n\n\n\n<p><strong>Control fees aggressively<\/strong><br>Fees compound just like returns. A 1\u20132% additional annual cost can erase most of the expected excess return from private equity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-explain-this-to-clients\">How to Explain This to Clients<\/h2>\n\n\n\n<p>\u201cPrivate equity is often presented as a way to earn higher returns, but the reality is more nuanced. Once you account for fees, limited liquidity, and the difficulty of selecting top-performing funds, the advantage becomes much less clear. In many cases, investors may be better off gaining exposure through simpler, more liquid public investments that capture similar economic benefits without the added complexity\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-most-important-chart-from-the-paper\">The Most Important Chart from the Paper<\/h2>\n\n\n\n<p>The S&amp;P returns generated during the same time periods are shown in Figure 1. The reported Horizon PE IRR returns outperformed the S&amp;P in each of the respective time increments. These are the numbers that PE proponents have used to justify PE capital allocations. However, these comparisons are flawed in that IRRs and TWRs are calculated very differently, and the cash flow timing has a material impact on IRR results. The Horizon IRRs above, in essence, \u201clump\u201d each of the vintage years into one pool and assume quarterly inflows and outflows of capital. This is unrealistic given that PE capital calls and distributions occur throughout the year.<\/p>\n\n\n\n<p>For Figure 2: Pitchbook undertook a more sophisticated analysis of PE performance versus the public market. First, they created \u201cPooled IRRs\u201d by vintage year which reflect the actual cash flows of all the funds in the pool when they occurred as opposed to the simplistic assumption of treating all cash flows as though they occurred quarterly or annually. Then, they created a better comparison to the S&amp;P, assuming analogous cash flows into the S&amp;P matching those of the Pooled IRRs.10 This analysis generated a return multiple on invested capital (MOIC) at the end of the time period. In effect, Pitchbook created an IRR to IRR comparison of PE and the S&amp;P. Lastly, Pitchbook then calculated the Direct Alpha (positive or negative) of the vintage year Pooled IRR relative to the S&amp;P. A score above 1 indicates outperformance and a score below 1 indicates underperformance relative to the S&amp;P.<br>The annual performance results of each vintage year for the past 23 years are shown in Exhibit 2. This methodology suggests very different conclusions than those in Figure 1.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"856\" height=\"224\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2026\/05\/Horizon-IRRs.png\" alt=\"\" class=\"wp-image-242429 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2026\/05\/Horizon-IRRs.png 856w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2026\/05\/Horizon-IRRs-700x183.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2026\/05\/Horizon-IRRs-300x79.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2026\/05\/Horizon-IRRs-768x201.png 768w\" data-sizes=\"(max-width: 856px) 100vw, 856px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 856px; aspect-ratio: 856\/224;\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"830\" height=\"221\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2026\/05\/Pooled-IRRs.png\" alt=\"\" class=\"wp-image-242430 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2026\/05\/Pooled-IRRs.png 830w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2026\/05\/Pooled-IRRs-700x186.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2026\/05\/Pooled-IRRs-300x80.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2026\/05\/Pooled-IRRs-768x204.png 768w\" data-sizes=\"(max-width: 830px) 100vw, 830px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 830px; aspect-ratio: 830\/221;\" \/><\/figure>\n\n\n\n<p><em>The results are hypothetical results and are NOT an indicator of future results and do NOT represent returns that any investor actually attained.&nbsp;Indexes are unmanaged and do not reflect management or trading fees, and one cannot invest directly in an index<\/em>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-abstract\">Abstract<\/h2>\n\n\n\n<p>This paper examines whether private equity investments should be included in retail retirement portfolios such as 401Ks. While proponents argue that private equity offers higher returns and access to a broader investment universe, the analysis challenges these claims. Evidence suggests that performance persistence has declined, excess returns relative to public markets have diminished, and additional layers of fees significantly reduce outcomes for retail investors. Given liquidity constraints and implementation challenges, the paper proposes an alternative approach: gaining exposure through publicly traded private equity firms, which may offer superior returns, lower costs, and greater flexibility.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The question is not whether private equity is attractive in theory. It is whether clients can access it efficiently. <\/p>\n","protected":false},"author":152,"featured_media":97537,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[339,338,341],"tags":[20384,21469,6465,4135],"contributors-categories":[13651],"class_list":{"0":"post-242427","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-data-science","8":"category-ibkr-quant-news","9":"category-quant-development","10":"tag-alternative-assets","11":"tag-family-finance","12":"tag-portfolio-diversification","13":"tag-risk-management","14":"contributors-categories-alpha-architect"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Should Your Mom Have Private Equity in Her 401K?<\/title>\n<meta name=\"description\" content=\"The question is not whether private equity is attractive in theory. It is whether clients can access it efficiently.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/242427\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Should Your Mom Have Private Equity in Her 401K?\" \/>\n<meta property=\"og:description\" content=\"The question is not whether private equity is attractive in theory. It is whether clients can access it efficiently.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.interactivebrokers.com\/campus\/ibkr-quant-news\/should-your-mom-have-private-equity-in-her-401k\/\" \/>\n<meta property=\"og:site_name\" content=\"IBKR Campus US\" \/>\n<meta property=\"article:published_time\" content=\"2026-05-05T15:44:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-05-05T15:47:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/08\/quant-research-2.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"563\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Elisabetta Basilico, Ph.D., CFA\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Elisabetta Basilico, Ph.D., CFA\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t    \"@context\": \"https:\\\/\\\/schema.org\",\n\t    \"@graph\": [\n\t        {\n\t            \"@type\": \"NewsArticle\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/ibkr-quant-news\\\/should-your-mom-have-private-equity-in-her-401k\\\/#article\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/ibkr-quant-news\\\/should-your-mom-have-private-equity-in-her-401k\\\/\"\n\t            },\n\t            \"author\": {\n\t                \"name\": \"Elisabetta Basilico, Ph.D., CFA\",\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/person\\\/be0fc850f28388c089a16534ce09be74\"\n\t            },\n\t            \"headline\": \"Should Your Mom Have Private Equity in Her 401K?\",\n\t            \"datePublished\": \"2026-05-05T15:44:51+00:00\",\n\t            \"dateModified\": \"2026-05-05T15:47:17+00:00\",\n\t            \"mainEntityOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/ibkr-quant-news\\\/should-your-mom-have-private-equity-in-her-401k\\\/\"\n\t            },\n\t            \"wordCount\": 1098,\n\t            \"commentCount\": 0,\n\t            \"publisher\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/ibkr-quant-news\\\/should-your-mom-have-private-equity-in-her-401k\\\/#primaryimage\"\n\t            },\n\t            \"thumbnailUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2021\\\/08\\\/quant-research-2.png\",\n\t            \"keywords\": [\n\t                \"alternative assets\",\n\t                \"Family Finance\",\n\t                \"portfolio diversification\",\n\t                \"risk management\"\n\t            ],\n\t            \"articleSection\": [\n\t                \"Data Science\",\n\t                \"Quant\",\n\t                \"Quant Development\"\n\t            ],\n\t            \"inLanguage\": \"en-US\",\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"CommentAction\",\n\t                    \"name\": \"Comment\",\n\t                    \"target\": [\n\t                        \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/ibkr-quant-news\\\/should-your-mom-have-private-equity-in-her-401k\\\/#respond\"\n\t                    ]\n\t                }\n\t            ]\n\t        },\n\t        {\n\t            \"@type\": \"WebPage\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/ibkr-quant-news\\\/should-your-mom-have-private-equity-in-her-401k\\\/\",\n\t            \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/ibkr-quant-news\\\/should-your-mom-have-private-equity-in-her-401k\\\/\",\n\t            \"name\": \"Should Your Mom Have Private Equity in Her 401K? | IBKR Campus US\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#website\"\n\t            },\n\t            \"primaryImageOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/ibkr-quant-news\\\/should-your-mom-have-private-equity-in-her-401k\\\/#primaryimage\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/ibkr-quant-news\\\/should-your-mom-have-private-equity-in-her-401k\\\/#primaryimage\"\n\t            },\n\t            \"thumbnailUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2021\\\/08\\\/quant-research-2.png\",\n\t            \"datePublished\": \"2026-05-05T15:44:51+00:00\",\n\t            \"dateModified\": \"2026-05-05T15:47:17+00:00\",\n\t            \"description\": \"The question is not whether private equity is attractive in theory. It is whether clients can access it efficiently.\",\n\t            \"inLanguage\": \"en-US\",\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"ReadAction\",\n\t                    \"target\": [\n\t                        \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/ibkr-quant-news\\\/should-your-mom-have-private-equity-in-her-401k\\\/\"\n\t                    ]\n\t                }\n\t            ]\n\t        },\n\t        {\n\t            \"@type\": \"ImageObject\",\n\t            \"inLanguage\": \"en-US\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/ibkr-quant-news\\\/should-your-mom-have-private-equity-in-her-401k\\\/#primaryimage\",\n\t            \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2021\\\/08\\\/quant-research-2.png\",\n\t            \"contentUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2021\\\/08\\\/quant-research-2.png\",\n\t            \"width\": 1000,\n\t            \"height\": 563,\n\t            \"caption\": \"Quant\"\n\t        },\n\t        {\n\t            \"@type\": \"WebSite\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#website\",\n\t            \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/\",\n\t            \"name\": \"IBKR Campus US\",\n\t            \"description\": \"Financial Education from Interactive Brokers\",\n\t            \"publisher\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\"\n\t            },\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"SearchAction\",\n\t                    \"target\": {\n\t                        \"@type\": \"EntryPoint\",\n\t                        \"urlTemplate\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/?s={search_term_string}\"\n\t                    },\n\t                    \"query-input\": {\n\t                        \"@type\": \"PropertyValueSpecification\",\n\t                        \"valueRequired\": true,\n\t                        \"valueName\": \"search_term_string\"\n\t                    }\n\t                }\n\t            ],\n\t            \"inLanguage\": \"en-US\"\n\t        },\n\t        {\n\t            \"@type\": \"Organization\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\",\n\t            \"name\": \"Interactive Brokers\",\n\t            \"alternateName\": \"IBKR\",\n\t            \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/\",\n\t            \"logo\": {\n\t                \"@type\": \"ImageObject\",\n\t                \"inLanguage\": \"en-US\",\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/logo\\\/image\\\/\",\n\t                \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2024\\\/05\\\/ibkr-campus-logo.jpg\",\n\t                \"contentUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2024\\\/05\\\/ibkr-campus-logo.jpg\",\n\t                \"width\": 669,\n\t                \"height\": 669,\n\t                \"caption\": \"Interactive Brokers\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/logo\\\/image\\\/\"\n\t            },\n\t            \"publishingPrinciples\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/about-ibkr-campus\\\/\",\n\t            \"ethicsPolicy\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/cyber-security-notice\\\/\"\n\t        },\n\t        {\n\t            \"@type\": \"Person\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/person\\\/be0fc850f28388c089a16534ce09be74\",\n\t            \"name\": \"Elisabetta Basilico, Ph.D., CFA\",\n\t            \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/author\\\/elisabettabasilico\\\/\"\n\t        }\n\t    ]\n\t}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Should Your Mom Have Private Equity in Her 401K?","description":"The question is not whether private equity is attractive in theory. It is whether clients can access it efficiently.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/242427\/","og_locale":"en_US","og_type":"article","og_title":"Should Your Mom Have Private Equity in Her 401K?","og_description":"The question is not whether private equity is attractive in theory. It is whether clients can access it efficiently.","og_url":"https:\/\/www.interactivebrokers.com\/campus\/ibkr-quant-news\/should-your-mom-have-private-equity-in-her-401k\/","og_site_name":"IBKR Campus US","article_published_time":"2026-05-05T15:44:51+00:00","article_modified_time":"2026-05-05T15:47:17+00:00","og_image":[{"width":1000,"height":563,"url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/08\/quant-research-2.png","type":"image\/png"}],"author":"Elisabetta Basilico, Ph.D., CFA","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Elisabetta Basilico, Ph.D., CFA","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"NewsArticle","@id":"https:\/\/ibkrcampus.com\/campus\/ibkr-quant-news\/should-your-mom-have-private-equity-in-her-401k\/#article","isPartOf":{"@id":"https:\/\/ibkrcampus.com\/campus\/ibkr-quant-news\/should-your-mom-have-private-equity-in-her-401k\/"},"author":{"name":"Elisabetta Basilico, Ph.D., CFA","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/person\/be0fc850f28388c089a16534ce09be74"},"headline":"Should Your Mom Have Private Equity in Her 401K?","datePublished":"2026-05-05T15:44:51+00:00","dateModified":"2026-05-05T15:47:17+00:00","mainEntityOfPage":{"@id":"https:\/\/ibkrcampus.com\/campus\/ibkr-quant-news\/should-your-mom-have-private-equity-in-her-401k\/"},"wordCount":1098,"commentCount":0,"publisher":{"@id":"https:\/\/ibkrcampus.com\/campus\/#organization"},"image":{"@id":"https:\/\/ibkrcampus.com\/campus\/ibkr-quant-news\/should-your-mom-have-private-equity-in-her-401k\/#primaryimage"},"thumbnailUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/08\/quant-research-2.png","keywords":["alternative assets","Family Finance","portfolio diversification","risk management"],"articleSection":["Data Science","Quant","Quant Development"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ibkrcampus.com\/campus\/ibkr-quant-news\/should-your-mom-have-private-equity-in-her-401k\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ibkrcampus.com\/campus\/ibkr-quant-news\/should-your-mom-have-private-equity-in-her-401k\/","url":"https:\/\/ibkrcampus.com\/campus\/ibkr-quant-news\/should-your-mom-have-private-equity-in-her-401k\/","name":"Should Your Mom Have Private Equity in Her 401K? | IBKR Campus US","isPartOf":{"@id":"https:\/\/ibkrcampus.com\/campus\/#website"},"primaryImageOfPage":{"@id":"https:\/\/ibkrcampus.com\/campus\/ibkr-quant-news\/should-your-mom-have-private-equity-in-her-401k\/#primaryimage"},"image":{"@id":"https:\/\/ibkrcampus.com\/campus\/ibkr-quant-news\/should-your-mom-have-private-equity-in-her-401k\/#primaryimage"},"thumbnailUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/08\/quant-research-2.png","datePublished":"2026-05-05T15:44:51+00:00","dateModified":"2026-05-05T15:47:17+00:00","description":"The question is not whether private equity is attractive in theory. It is whether clients can access it efficiently.","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ibkrcampus.com\/campus\/ibkr-quant-news\/should-your-mom-have-private-equity-in-her-401k\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ibkrcampus.com\/campus\/ibkr-quant-news\/should-your-mom-have-private-equity-in-her-401k\/#primaryimage","url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/08\/quant-research-2.png","contentUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/08\/quant-research-2.png","width":1000,"height":563,"caption":"Quant"},{"@type":"WebSite","@id":"https:\/\/ibkrcampus.com\/campus\/#website","url":"https:\/\/ibkrcampus.com\/campus\/","name":"IBKR Campus US","description":"Financial Education from Interactive Brokers","publisher":{"@id":"https:\/\/ibkrcampus.com\/campus\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ibkrcampus.com\/campus\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ibkrcampus.com\/campus\/#organization","name":"Interactive Brokers","alternateName":"IBKR","url":"https:\/\/ibkrcampus.com\/campus\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/logo\/image\/","url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/ibkr-campus-logo.jpg","contentUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/ibkr-campus-logo.jpg","width":669,"height":669,"caption":"Interactive Brokers"},"image":{"@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/logo\/image\/"},"publishingPrinciples":"https:\/\/www.interactivebrokers.com\/campus\/about-ibkr-campus\/","ethicsPolicy":"https:\/\/www.interactivebrokers.com\/campus\/cyber-security-notice\/"},{"@type":"Person","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/person\/be0fc850f28388c089a16534ce09be74","name":"Elisabetta Basilico, Ph.D., CFA","url":"https:\/\/www.interactivebrokers.com\/campus\/author\/elisabettabasilico\/"}]}},"jetpack_featured_media_url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/08\/quant-research-2.png","_links":{"self":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts\/242427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/users\/152"}],"replies":[{"embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/comments?post=242427"}],"version-history":[{"count":0,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts\/242427\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/media\/97537"}],"wp:attachment":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/media?parent=242427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/categories?post=242427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/tags?post=242427"},{"taxonomy":"contributors-categories","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/contributors-categories?post=242427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}