International Paper, a large manufacturing company, partnered with PGIM Real Estate to provide its defined contribution (DC) plan participants access to daily-valued private real estate.
International Paper wanted to provide plan participants access to private real estate while maintaining guardrails to avoid overallocation to the asset class, requiring buy-in from numerous partners.
Taking into consideration the goals of the DC investment committee and the investment and operational hurdles of the plan's key partners, multiple access points were ultimately implemented to allow participants to access private real estate as a standalone option with a maximum allocation limit of 25%, as well as through the plan's third-party managed account service.
While the initial mandate centered on offering private real estate as a standalone option, the final implementation also included the private real estate fund in the plan's managed account service. This required numerous phases over an eight-month period.
Case studies are provided for illustrative purposes only and results may vary.