The New SEC Rules And The Landscape Of Private Equity Fees

As firms increasingly prepare for retail flows into alternative investments, private equity (PE) fees have once again captured headlines. This renewed interest arises from PE firms’ ambitions to have a place in defined contribution (DC) retirement plans, with the backdrop of the Securities and Exchange Commission (SEC) being renowned for prioritizing the protection of retail investors.

According to Preqin’s 2021 Global Private Equity Report, over 18,000 private equity funds exist today with assets under management surpassing $4.7 trillion. Even amidst challenging fundraising circumstances, private equity AUM maintains a steady growth trajectory, with Preqin projecting it to reach $7.6 trillion by 2027.