New Bill Would Expand Investor Access to Private Markets, Aaron Schlaphoff Tells PitchBook

Corporate partner Aaron Schlaphoff spoke with PitchBook about legislation recently passed through the U.S. House of Representatives which calls on the Securities and Exchange Commission to revise the definition of “accredited investor” from high-net-worth individuals to anyone who passes a federally mandated exam, thus expanding access to private markets. In the article, “A New Bill Would Expand the Definition of ‘LP,’” published on August 5, Aaron explains that, if passed by the Senate and signed into law, the bill would address a longstanding topic of debate in the private funds space, namely that there are individuals who don’t meet the currently federally mandated wealth threshold for private markets (over $1 million in net worth or an annual income of over $200,000), but who are still financially sophisticated. He also notes that, even with bipartisan support, new entrants to the market through this bill would likely not materially change the demographic makeup of private equity’s investor base.

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