Voya adds private equity investment option to its nonqualified deferred compensation offering

Rhea-AI Summary

Voya Financial (NYSE: VOYA) has added the Pomona Investment Fund (PIF) as a new option within its nonqualified deferred compensation (NQDC) executive-benefit solution. This fund provides accredited investors access to private equity investments, aiming for long-term capital appreciation through seasoned private equity funds and direct opportunities. With over $711 billion in assets under management, Voya continues to innovate in workplace solutions, enhancing potential returns for participants in NQDC plans.

Positive

• Introduction of PIF expands investment options for NQDC participants.
• PIF aims for long-term capital appreciation through professional management.
• Access to private equity may enhance risk-reward characteristics for investors.

Negative

• None.

Pomona Investment Fund will offer plan participants access to long-term capital-appreciation investing

WINDSOR, Conn.--(BUSINESS WIRE)-- Voya Financial, Inc. (NYSE: VOYA), announced today that the company has added the Pomona Investment Fund (PIF) as a new option to Voya’s nonqualified deferred compensation (NQDC) executive-benefit solution. 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. PIF seeks long-term capital appreciation 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.

An alternative investment, private equity is an asset class that is an alternative to stocks and bonds; it generally consists of equity and debt investments in companies, infrastructure, real estate and other assets. Traditionally dominated by large institutions, private equity has gained popularity in recent years in retirement programs outside of the U.S. What’s more, according to recent industry data, the number of public companies listed in the U.S. has declined over the past 20 years, dropping from about 5,500 in 2000 to about 4,000 in 2020,¹ limiting the investment opportunities for long-term savers who, in the past, may have relied on public equity markets to generate returns to help them achieve their retirement goals.

“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*, Nonqualified Markets at Voya Financial. “Giving participants in Voya’s NQDC benefit solution access to PIF represents another way we are focused on helping individuals achieve their long-term investment goals. We believe that PIF’s structure and focus will make for an ideal opportunity for those who want to benefit from long-term investments in private equity.”

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,” added Penland. “NQDC distributions are unique in that they are triggered once an employee separates from their company, and they do not offer the ability to rollover funds. 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.”

“We believe PIF investors have the opportunity to invest in private equity in a risk-conscious strategy similar to sophisticated institutional investors around the world,” said Michael Granoff, chief executive officer at Pomona Capital. “We’ve adapted the traditional institutional fund structure in an innovative way to meet the needs of individual investors, including those participating in executive-benefit solutions. We look forward to further working with our colleagues across Voya to help these individuals meet their retirement goals.”

The addition of PIF is the latest example of how Voya continues to support and invest in holistic workplace solutions to help all Americans on their journey to a secure financial future. Last year, Voya announced the launch of a first-of-its-kind NQDC distribution portfolios for workplace clients.

Over five years ago, through the acquisition of Pen-Cal, Voya began offering NQDC executive benefits as an integrated solution when Voya is administering an employer’s core defined contribution retirement plan. The services are also available when an employer is looking for nonqualified plan support on a stand-alone basis. Through these services, Voya has been able to advance its innovative, nonqualified compensation executive benefit solution along with its leading qualified plan administration services through an integrated experience that helps to advance greater financial security for all participants.

As an industry leader focused on the delivery of workplace benefits, savings, and investment solutions to and through the workplace, Voya is committed to delivering on its mission to make a secure financial future possible for all Americans — one person, one family, one institution at a time.

1. McKinsey & Company, “Reports of corporates’ demise have been greatly exaggerated,” (Oct. 2021)

*Registered Representative of Voya Financial Partners LLC, (member SIPC)

About Voya Financial^®

Voya Financial, Inc. (NYSE: VOYA) is a leading health, wealth and investment company that provides products, solutions and technologies that enable a better financial future for its clients, customers and society. Serving the needs of 14.3 million individual, workplace and institutional clients, Voya has approximately 6,000 employees and had $711 billion in total assets under management and administration as of September 30, 2022. Certified as a “Great Place to Work” by the Great Place to Work® Institute, Voya is purpose-driven and equally committed to conducting business in a way that is socially, environmentally, economically and ethically responsible. Voya has earned recognition as: one of the World’s Most Ethical Companies® by the Ethisphere Institute; a member of the Bloomberg Gender-Equality Index; and a “Best Place to Work for Disability Inclusion” on the Disability Equality Index. For more information, visit voya.com. Follow Voya Financial on Facebook, LinkedIn and Twitter @Voya.

About Pomona Capital

Pomona is an international private equity firm with over $16 billion in aggregate capital commitments as of Nov. 1, 2022 across its sponsored-funds and separate accounts on behalf of a global group of over 350 sophisticated investors from more than 25 countries. Pomona was founded in 1994 and was one of the earliest secondary market investors, establishing itself as a pioneer in the marketplace. Pomona also manages a $5.8 billion business making primary investments in private equity funds as a strategic complement to the secondaries business. Pomona has collectively invested in partnership interests in approximately 750 private equity funds, diversified across the spectrum of private equity, with underlying investments in over 10,000 companies since inception. Pomona Capital’s team is based in New York, London and Hong Kong. Pomona’s capital capacity and global reach are enhanced by a strategic partnership with Voya Investment Management.

Investors should carefully consider a fund’s investment objectives, risks, charges and expenses. This and other important information is contained in a fund’s prospectus, which can be obtained by visiting www.pomonainvestmentfund.com. Please read it carefully before investing.

Past performance is no guarantee of future results.

Principal Risks. An investment in the Fund involves a considerable amount of risk. A Shareholder may lose money. Before making an investment decision, a prospective investor should (i) consider the suitability of this investment with respect to the investor’s investment objectives and personal situation and (ii) consider factors such as the investor’s personal net worth, income, age, risk tolerance, and liquidity needs. The Fund is an illiquid investment. Shareholders have no right to require the Fund to redeem their Shares in the Fund and, as discussed in the Fund’s prospectus, the Fund conducts quarterly tender offers subject to Board approval. Therefore, before investing investors should carefully read the Fund’s prospectus and consider carefully the risks that they assume when they invest in the Fund’s common shares.

VOYA-RET

View source version on businesswire.com: https://www.businesswire.com/news/home/20221110005102/en/

Media:

Laura Maulucci

P: (508) 353-6913

Laura.Maulucci@voya.com

Source: Voya Financial, Inc.

FAQ

What is the Pomona Investment Fund added by Voya?

The Pomona Investment Fund (PIF) is a new investment option introduced by Voya Financial, providing access to private equity for accredited investors.

How does the Pomona Investment Fund benefit Voya’s NQDC participants?

The Pomona Investment Fund offers NQDC participants professionally managed investments aimed at long-term capital appreciation, potentially improving portfolio diversification.

What is Voya Financial’s stock symbol?

Voya Financial's stock symbol is VOYA.

How much total assets does Voya Financial manage?

As of September 30, 2022, Voya Financial manages approximately $711 billion in total assets.

Why has Voya introduced the Pomona Investment Fund?

Voya introduced PIF to provide alternative investment solutions within NQDC plans, aiming to help participants achieve long-term retirement goals.