For decades, private equity remained an exclusive domain—accessible only to institutions and ultra-wealthy individuals. But a profound shift is now underway. Thanks to breakthrough platforms and forward-leaning regulatory changes, retail investors are finally getting a seat at the private equity table.

Key Insight: Platforms Like Capital Engine® Are Changing the Game

Capital Engine® is helping drive this transformation. Our platform enables retail investors—ranging from accredited individuals to mass-affluent investors and family offices—to directly access private equity offerings that were previously out of reach.

Through our global infrastructure for primary and secondary private markets, Capital Engine® supports:

• Private equity funds listing offerings directly to qualified retail and institutional investors
• Direct investment syndicates and SPVs giving investors deal-by-deal access to private equity opportunities
• Secondary market trading, allowing liquidity in private shares, which has long been a barrier to retail participation

In the past 12 months alone, we’ve seen a surge in retail appetite across our network of investment platforms like USA REIT, Capital Engine® Private Markets , and various white-labeled marketplaces like Accretiv USA , demonstrating that demand for private equity access is both global and accelerating.

Case in point: Several of our platform clients—broker dealers, real estate funds, and syndicate groups—have begun leveraging Capital Engine® to open previously closed offerings to:

• High-net-worth and mass-affluent retail investors
• International investors via Reg S structures
• US-based accredited investors under Reg D 506(c)

This is precisely the kind of infrastructure that will underpin the next wave of democratized private markets.

Regulatory Update: SEC Poised to Expand Access for U.S. Retail Investors

The U.S. Securities and Exchange Commission (SEC) is actively laying the groundwork to support broader retail access to private equity:

• In May 2025, the SEC eliminated comments that restricted closed-end funds with more than 15% private investments from being broadly marketed to retail investors.
• SEC leaders, including Chair Paul Atkins and Division Director Natasha Greiner, reaffirmed this direction—clearing the way for more flexible retail-facing private equity vehicles.
• Commissioner Hester Peirce continues to advocate for expanding the definition of accredited investor, as well as promoting greater access through registered and transparent investment vehicles.

What this means: We are moving toward a future where retail investors will be able to gain exposure to private equity through:

• Registered closed-end funds with higher private asset allocations
• Interval funds and evergreen structures that provide periodic liquidity
• Direct participation vehicles and co-investment opportunities enabled by platforms like Capital Engine®

Visual: Regulatory Timeline of Retail Access to Private Equity

Why It Matters

What That Means for You

1. Investor Inclusion: Platforms like Capital Engine® private markets are helping democratize access, enabling more investors to participate in the value creation of private equity.
2. Institutional Innovation: The blending of institutional-grade fund structures with accessible wrappers will help create new opportunities for both investors and fund managers.
3. Balanced Opportunity & Risk: As access expands, it’s essential that investor education, transparency, and regulatory compliance evolve alongside.
   • Understand Structures: Learn how various vehicles (interval funds, closed-end funds, SPVs) handle fees, liquidity, and risks.
   • Engage Trusted Platforms: Work with platforms that offer transparency, compliance-first investor onboarding, and ongoing reporting—this is where Capital Engine® leads.
   • Stay Informed: Follow the SEC’s next moves closely. As more exemptions and vehicles emerge, smart investors will position themselves early.
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   In the Engine Room Podcast

   

   Up Next: Global Perspectives on Retail Access — How European retail investors already enjoy alternative investment access and how the U.S. may catch up.

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