Earlier this summer, the SEC put out a report exploring ways to safely expand access to PE and venture investment for individual investors. The comment period on the proposal expires next month (in September).
A recent article in the Financial Times highlights the activity that private markets in the U.S. received – $2.9 trillion – last year, although much of the attention goes to public equity. This creates a problem for the common American as 98% of US households are restricted from investing in PE and Venture funds, as are their 401(k) plans.
According to the Committee on Capital Markets Regulation, “the SEC should allow retail investors to put money into public closed-end funds that primarily invest in private equity or venture capital funds- so-called funds of funds.”