SEC proposes performance fees for retail funds in private markets push

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Retail investors, fund managers, and advisers are the groups most affected today because the SEC has proposed rules that would broaden access to private-market exposure through funds and adjust how some funds can charge performance fees. The change is still only a proposal, so the immediate effect is that the market now has a specific rule package to watch rather than a finished rulebook.

In practice, the package would change who may qualify as an accredited investor and would permit performance fees of up to 20% in some funds. What would not change is that retail investors would still not get direct access to every private company’s shares, so the access route remains through funds rather than a full opening of private-company stock ownership.