In remarks supporting two U.S. Securities and Exchange Commission proposals, Commissioner Hester M. Peirce argued that professionally managed, diversified funds can give retail investors greater access to private investments. The proposals build on the SEC staff’s 2025 withdrawal of informal restrictions that had required certain closed-end funds and business development companies to limit private fund exposure or restrict eligibility and impose high investment minimums. One proposal would expand advisers’ ability to charge performance fees for managing closed-end funds and business development companies. The other would modernize interval funds by permitting monthly repurchase offers, allowing longer deferral of initial repurchases and replacing prescriptive portfolio liquidity requirements with a principles-based approach. Peirce also asked whether the measures would address persistent discounts between closed-end fund share prices and net asset values, and when open-end funds might use performance fees.
U.S. Securities and Exchange Commission Commissioner Hester Peirce backs proposals to widen retail access to private investments
U.S. Securities and Exchange Commission Commissioner Hester M. Peirce supported two proposals intended to expand retail access to private investments through regulated funds. The measures would broaden performance fees for advisers and give interval funds more flexible repurchase, investment and liquidity rules. Peirce also raised questions about closed-end fund discounts and potential use of performance fees by open-end funds.