Private Equity Eyes Retail Retirement Money as Exit Market Stays Frozen

Private equity firms remain stuck with trillions of dollars of portfolio companies as deal activity slows and exits take longer to complete.
Regulators have now proposed expanding access to private funds for individual investors and retirement accounts, potentially opening a new source of capital for the industry.
The shift comes with important risks. Private equity funds can be illiquid, difficult to value and expensive, while investors may face restrictions on withdrawing capital. Meanwhile, shares of major alternative-asset managers are down roughly 12% to 36% this year, highlighting the pressure already facing the industry.