- Progress in expanding individual investor access to private equity has been slow, but there are new reasons for optimism.
- Vanguard announced plans to "broaden access to private equity” by making PE investments available to qualified individual clients (those with $5M in investible assets).
- Further broadening access to the mass affluent (13% of US households) and (eventually) to the general investing public will require ’40 Act registered funds.
- Adding Vanguard client assets could double or triple current '40 Act PE fund assets, highlighting the need for a new '40 Act fund structure, such as the Aditum Aqueduct.
- The general investing public might eventually have access to high-quality PE at a fraction of current fee levels charged by established private market firms, disrupting the private equity industry.
For further details see:
Private Equity Innovation Is Needed. Will Disruption Follow?