Marc Elovitz and John Fitzgerald discuss SEC proposals to expand retail access to private markets in the Financial Times, Ignites, and Pensions & Investments

Marc Elovitz and John Fitzgerald shared insights on the US Securities and Exchange Commission’s proposals to expand retail access to private markets, with commentary featured in the Financial Times, Ignites and Pensions & Investments.

Drawing on their experience in private fund regulation and registered investment products, Marc and John discussed how proposed changes to performance-based compensation, interval fund rules and share-class structures could affect managers seeking to bring private market strategies to a broader investor base.

Financial Times: A measured approach to expanding access

Marc, who leads the firm’s Investment Management Regulatory Group, described the proposed changes as “thoughtful and meaningful attempts to expand access,” emphasizing their targeted approach to broadening participation in private markets.

Pensions & Investments: Removing barriers for private market managers

John discussed how the proposed performance-fee changes could encourage private market managers to reconsider offering their strategies through registered funds.

“There have been private market managers who’ve been hesitant to enter registered funds because of the fee construct,” he said.

Marc explained that allowing regulated closed-end funds to offer multiple share classes without individual exemptive relief could reduce the time and expense associated with bringing products to investors.

Ignites: Investor demand remains key

John emphasized that greater regulatory flexibility alone would not determine whether managers enter the registered fund market. Managers would still need to assess whether their strategies appeal to investors, noting that “they are not going to offer a strategy if they do not think they can raise assets.”

Advising at the intersection of private markets and registered funds

McDermott Will & Schulte’s Investment Management practice combines private funds regulatory experience with advice on the formation, structuring and operation of registered investment products. With more than 150 lawyers worldwide, the group advises investment managers across the fund life cycle, from fund formation and capital raising to portfolio management and liquidity solutions. Its combined fund structuring, tax and regulatory experience helps managers develop investment vehicles for diverse investor bases and navigate evolving regulatory requirements.