Key Takeaways
- • Neuberger Berman's study finds private equity can increase overall portfolio net returns by 20-67 basis points in UK defined contribution (DC) pension schemes.
- • The research addresses how allocations to the asset class could affect outcomes for UK DC members, a segment of the market where private markets exposure is still developing.
- • The findings are relevant to limited partners and pension investors weighing private markets allocations within DC default and growth strategies.
Summary
A study by Neuberger Berman has found that private equity can increase overall portfolio net returns by 20 to 67 basis points in defined contribution (DC) pension schemes, according to PEI Private Equity, which reported the research on 8 May 2025. The article, written by Carmela Mendoza, frames the findings around the question of how private equity exposure would affect the returns of UK DC pensions.
The range of 20 to 67 basis points is presented as the estimated uplift to overall portfolio net returns. The source article does not provide further detail on the underlying assumptions, allocation sizes, or time horizons used in the analysis, so the range should be read as the study's headline estimate rather than a guaranteed outcome.
The study's relevance lies in the UK DC pension market, where private markets exposure has been discussed as a way to improve long-term outcomes for savers. The article is categorised under investors, Western Europe, manager strategy, limited partners and pensions, indicating its target audience is institutional investors and pension-side allocators considering how private equity fits within DC structures.
The range of 20 to 67 basis points is presented as the estimated uplift to overall portfolio net returns. The source article does not provide further detail on the underlying assumptions, allocation sizes, or time horizons used in the analysis, so the range should be read as the study's headline estimate rather than a guaranteed outcome.
The study's relevance lies in the UK DC pension market, where private markets exposure has been discussed as a way to improve long-term outcomes for savers. The article is categorised under investors, Western Europe, manager strategy, limited partners and pensions, indicating its target audience is institutional investors and pension-side allocators considering how private equity fits within DC structures.
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