The US Securities and Exchange Commission, or SEC, approved a major proposal to give retail investors greater access to private markets, while allowing Registered Investment Advisers, or RIAs, to charge performance-based fees of up to 20%, a level close to the fees common in the hedge fund and alternative asset industry. The proposal, approved by the SEC on Wednesday, September 30, will expand the number and types of channels through which ordinary individuals can qualify as accredited investors, who are able to access assets and investment products not offered to the general public. SEC Chairman Paul Atkins said demand among investors to invest in private markets is rising, and access to sources of capital, one of the key mechanisms of the US business sector, should not be limited to only the wealthy or investors viewed as sophisticated. The move aligns with the approach of President Donald Trump's administration, which wants to ease regulatory restrictions in private markets. In August 2025, Trump signed an executive order titled Democratizing Access to Alternative Assets for 401(k) Investors, which opens the way for Americans to put more of their 401(k) retirement plan money into private equity and other alternative assets. However, the opening of the door to more retail money flowing into private markets comes at a time when the private asset industry is under intense scrutiny, particularly over the mismatch between the liquidity of assets and the expectations of retail investors. In February, Blue Owl Capital suspended cash repurchases under the quarterly cycle of its Blue Owl Capital Corporation II fund, which focuses on the US retail investor market, after redemption requests from investors surged. Other private credit fund managers, including Blackstone and Apollo, have used similar withdrawal restriction measures, and Jon Gray, President and Chief Operating Officer of Blackstone, told CNBC in March that such restrictions are a feature, not a bug, of private credit products, reflecting that redemption limits are part of the structure of products that invest in illiquid assets.
Blue Owl Capital CorporationArticle cites Blue Owl's February suspension of cash repurchases in its retail-focused fund amid surging redemption requests, highlighting liquidity mismatch risks as retail access expands.
Blackstone Group IncSEC move opens retail capital to private markets, but article notes Blackstone among private credit managers facing scrutiny over liquidity mismatches and redemptions.
Apollo Global Management LLC Class ASEC approval expanding retail access to private markets and allowing performance fees up to 20% benefits alternative asset managers like Apollo.
