The pathways into Defined Contribution (DC) plans could be opening up for private credit. According to PIMCO’s 2026 Defined Contribution Consulting Study, private market asset classes are starting to gain greater acceptance within default funds.
Based on survey responses from 38 consulting and advisory firms, the expectation is that plan sponsors are willing to adopt private market exposure in target-date funds (TDFs) or managed accounts within the next year. This constitutes a massive surge from just 37% in the prior year’s study.
Key Takeaways:
- PIMCO’s 2026 study reveals that a massive 89% of plan sponsors are now willing to adopt private market exposure in target-date funds or managed accounts within the next year. Previously, that number was 37%.
- Private credit ranks as the most sought-after private asset class for defined contribution plans, with intermediaries prioritizing high returns balanced against cost, asset quality, and daily liquidity.
- The Simplify Private Credit Strategy ETF (PCR) bridges this gap by packaging institutional private lending into a transparent, liquid vehicle with a competitive 0.76% expense ratio.
See more: From Institutional to Public Portfolios: Access Private Credit With PCR
Access Private Credit With Daily Liquidity
The PIMCO study noted that 91% of aggregators and 52% of institutional consultants rank private credit among the most likely private assets slated for addition to DC multi-asset funds in the near term. As broader adoption unfolds, intermediaries are heavily emphasizing the need to balance high return potential with cost, asset quality, and the strict requirement to maintain daily liquidity. Enter exchange-traded funds (ETFs), which have helped to democratize access to private credit.
Access to this market historically meant dealing with lock-up periods, complex tax reporting, and high management fees. The +Simplify Private Credit Strategy ETF+ (PCR) clears these structural hurdles by packaging private credit access into a transparent, liquid investment vehicle.
Income and Capital Appreciation
PCR’s primary investment objective is to generate income and capital appreciation. PCR actively utilizes the VettaFi Private Credit Index (VPCIX), which screens public business development companies (BDCs) and closed-end funds (CEFs) that have at least 50% of their portfolios directly tied to private corporate lending. By utilizing total return swaps to provide this exposure, the fund maintains daily liquidity along with a highly competitive net expense ratio of 0.76%. This is drastically lower than standard fund-of-CEF strategies.
The active mandate in PCR empowers its portfolio managers to implement real-time credit underwriting and manager selection. As such, PCR can dynamically tilt its asset allocation toward top-tier institutional private credit managers in various macroeconomic conditions.
As plan sponsors demand more access to private credit solutions, PCR offers a liquid and cost-efficient solution. The fund bridges the gap between high-yielding private debt and the liquid operational needs of modern portfolios, making it a compelling tool as demand for private credit boom increases.
For more news, information, and analysis, visit the Institutional Income Strategies Content Hub.
VettaFi LLC (“VettaFi”) is the index provider for PCR, for which it receives an index licensing fee. However, PCR is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of PCR.
