US SEC Proposes to Ease Private Investment Thresholds, Pushing Retail Investors into Private Markets

BlockBeats news, October 1 — The U.S. Securities and Exchange Commission (SEC) on Wednesday proposed a series of reforms aimed at expanding individual investors' access to private markets, allowing more retail investors to gain exposure to private equity, early-stage startups, and other alternative assets. One proposal would allow registered investment advisers to charge performance fees of up to 20% based on fund performance, bringing the fee model closer to the "2% management fee + 20% performance fee" structure used by some hedge funds, in order to attract more private fund managers to serve individual investors.

SEC Chairman Paul Atkins said the commission hopes to explore ways to expand individual investors' participation in private markets while guarding against fraud and misconduct. The SEC also proposed broadening the definition of "accredited investor," allowing more individuals with professional credentials (including certified public accountants and chartered financial analysts) to qualify for investment.