Sarah Clinton Discusses SEC Co-Investment Relief for Open-End Funds in Fund Directions

Asset Management partner Sarah Clinton shared insights in a recent Fund Directions article examining industry efforts to broaden retail access to private market opportunities through expanded co-investment relief.

Sarah noted that she expects the SEC could move forward in the near term with the expansion of co-investment relief to cover open-end funds, characterizing the potential action as an “easy give” and highlighting strong asset manager interest in greater access to a “vastly growing” segment of the market.

She added that open-end funds already may invest up to 15% of assets in illiquid investments and are accessing private markets today, but often in less efficient ways than would be possible if they could participate directly in co-investments alongside affiliates. She also observed that the SEC could implement this change via a class order or no-action relief to sponsors with existing co-investment orders, which would pose less burden on the agency.