07.07.21

Increasing Retail Investor Access to Private Markets Gains Bipartisan Support

by: Mark Schoeff

Legislation that would increase retail investors’ access to private markets has gained bipartisan support. The Increasing Investor Opportunities Act, introduced by Reps. Anthony Gonzalez (R-OH) and Gregory Meeks (D-NY), would allow closed-end funds more latitude to invest their assets in private funds and to sell those shares to retail investors. Under current restrictions based on guidance from SEC staff, closed-end funds are prohibited from investing more than 15% of their assets in private funds unless it sells those shares to accredited investors who invest at least $25,000. “We're very happy to see bipartisan support,” said Ken Fang, associate general counsel at the Investment Company Institute. “That will hopefully build momentum into this Congress. It's an issue that will ultimately benefit investors.” The bill would also prohibit hedge funds and their affiliates from acquiring more than 10% of a closed-end fund’s assets.

Read the full article on InvestmentNews.