Home      Login

Abstract: 

This article provides an introductory overview of the “retailization” of private equity in the United States, detailing how fund sponsors are expanding access to individual investors through innovative product structures and partnerships. It examines sponsor motivations like diversification and platform growth, among others, for this shift toward retail investors while outlining the operational, regulatory, and economic challenges sponsors face. The article also reviews common approaches for accessing retail capital through various structures such as feeder funds, evergreen vehicles, holding companies, and registered investment companies. Overall, it underscores that retailization is reshaping private equity by broadening the investor base and driving product innovation, but requires strategic clarity and operational readiness to navigate its complexities and realize its full potential.

Keywords: Accredited Investor; Private Feeder Funds/Bank Feeder Funds; Evergreen Private Funds; Holding Company Vehicles; Closed-End Registered Investment Companies

Affiliations:  1: Paul, Weiss, Rifkind, Wharton & Garrison LLP.