Former SEC Chair Arthur Levitt Jr. called for third-party valuations of assets used in performance-fee calculations as the agency weighs widening individual access to private-market funds.
The plan is intended to help private-equity and venture-capital managers, along with other fund operators, raise money from individuals. It would also allow closed-end funds to issue distinct share classes without first obtaining regulatory clearance.
Levitt said firms would retain discretion over how they set charges, handle liquidity, disclose information, govern funds and value assets. He cautioned that individual investors might be placed in share classes that cost more.
Levitt wants outside valuations applied to assets counted toward performance fees. He also called for charts in fund offering documents to show the effect of fees on returns.
