ICI CEO: Make Private Markets More Accessible to Retail Investors

WASHINGTON, May 1, 2025 /PRNewswire/ -- Investment Company Institute (ICI) President and CEO Eric J. Pan kicked off the 2025 Leadership Summit in Washington, DC, today with remarks focused on the need to give retail investors more opportunities to invest in private markets. Pan cited the fast-paced growth of private markets and said ICI is working to facilitate greater retail investor access to these markets.

"The rise of private markets cannot be ignored as a fringe part of the investment ecosystem. In 2013—just 12 short years ago—private markets had investments of $4 trillion. A decade later, that number had nearly quadrupled, to $15 trillion. By one measure, private markets have already hit the $25 trillion mark, which means their growth is accelerating even faster than expected," said Pan.

Pan continued by explaining how expanding access to private markets is central to the Institute's vision to modernize the 1940 Investment Company Act, saying that "these markets are the next frontier, full of boundless opportunities for Americans who want to save for a home, their children's education, and their retirement. Our goal, and our job, is to help them seize those opportunities, so they can achieve their American Dream."

To expand access to capital markets, ICI recommends that the Securities and Exchange Commission (SEC):

• Lift the 15% limit on alternative investments by retail-facing closed-end funds;
• Update the conditions for co-investment by regulated funds, including closed-end funds and business development companies;
• Expand options for closed-end funds, including protecting retail investors by ending the annual meeting requirement that activist investors abuse for short-term gain; and
• Look to expand the availability of private markets strategies in retirement plans such as 401(k)s.

"Critics say that retail investors will be exposed to greater risk in private markets, and we agree that any such risks should be mitigated. The fact is that regulated funds already offer the best protection. They're governed by strict legal requirements, including robust oversight from an independent board, an adviser who is subject to a fiduciary duty, diversification requirements, limitations on leverage and transactions with affiliates, and shareholder disclosure requirements, among many other commonsense guardrails. By using regulated funds to invest in private markets, retail investors will get the best of both worlds—and the protections they deserve," remarked Pan.

ICI's annual Leadership Summit gathers industry leaders for a robust discussion of the issues facing asset managers today. Find more information on the conference here. Read the full remarks here.

Contact: [email protected]

SOURCE Investment Company Institute