SEC proposes performance fees for retail funds in private markets push

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.