SEC Commissioner Supports Retail Investor Access to Private Markets

In remarks at SIFMA’s Private Markets Valuation Roundtable, SEC Commissioner Mark T. Uyeda supported "some level of exposure" by retail investors to private markets.

Commissioner Uyeda discussed the importance of private markets, the regulatory framework for their valuation, and the potential for expanding retail investor access to alternative investments. He highlighted three concerns and welcomed corresponding proposals:

Private Markets and Economic Growth. Commissioner Uyeda stressed that private markets are central to innovation, job creation, and capital formation. He rejected claims that their growth undermines public markets, emphasizing instead their complementary roles. He noted that private markets incubate companies that often transition into public markets, enhancing efficiency and diversification across the financial system.

Valuation and Disclosure Standards. Commissioner Uyeda underscored that accurate valuations and transparent disclosures help reduce capital costs and strengthen investor trust. He highlighted the SEC’s focus on fee calculations and the valuation of illiquid assets, pointing to ICA Rule 2a-5 ("Fair value determination and readily available market quotations")—as a key safeguard requiring investment company boards of directors to adopt rigorous, risk-based valuation processes. He further emphasized that closed-end funds must ensure their net asset value ("NAV") is defensible, even when market prices diverge, since NAV remains a critical benchmark for regulators, boards, and investors.

Retail Access to Alternative Investments. Commissioner Uyeda credited President Trump’s executive order encouraging 401(k) access to alternatives, such as private equity, private credit, infrastructure, and digital assets. He described the initiative as a forward-looking effort to expand retirement savers’ opportunities. He acknowledged the risks of illiquid markets but argued that exposure can improve diversification and resilience.