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Voya Boosts NQDC Offering with Private Equity Option

Client Services

Voya Financial announced that it has added a new private equity 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 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 the announcement, PIF will offer plan participants access to long-term capital-appreciation investing 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 of Nonqualified Markets at Voya Financial.

Participants in Voya’s NQDC executive benefit solution who choose to direct part of their investments in PIF will gain access to the professionally managed long-term, multi-asset solution, including:

  • Private equity exposure for accredited investors exposure that can complement and potentially improve the risk and reward characteristics of an investment portfolio.
  • Professional support through an experienced firm with more 20 years of private equity experience navigating through multiple economic cycles.
  • Value-oriented approaches that seek long-term capital appreciation and attractive risk-adjusted returns.
  • A transparent structure that is also user-friendly, including 1099 tax reporting and independent trustee oversight.

“Historically, many traditional 401(k) investment options have lacked the structure to meet the specific needs of NQDC plan participants as many of these investments assume a prolonged investment strategy with distributions occurring over a number of years,” Penland further explains. “Providing Voya’s NQDC participants access to alternative investing solutions through PIF will help provide a greater opportunity to diversify their portfolios against this potential shortcoming and, ultimately, support their long-term financial goals.”

Last year, Voya announced the launch of new distribution portfolios for its NQDC plans.