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Private Equity Innovation Is Needed. Will Disruption Follow?

May 24, 2021 9:01 AM ETBLK, BX, CG, HLNE, KKR, STEP6 Comments
Ken McGuire profile picture
Ken McGuire


  • Progress in expanding individual investor access to private equity has been slow, but there are new reasons for optimism.
  • Vanguard announced plans to "broaden access to private equity” by making PE investments available to qualified individual clients (those with $5M in investible assets).
  • Further broadening access to the mass affluent (13% of US households) and (eventually) to the general investing public will require ’40 Act registered funds.
  • Adding Vanguard client assets could double or triple current '40 Act PE fund assets, highlighting the need for a new '40 Act fund structure, such as the Aditum Aqueduct.
  • The general investing public might eventually have access to high-quality PE at a fraction of current fee levels charged by established private market firms, disrupting the private equity industry.

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The SEC Moves Deliberately Through Firsts, But It Moves

I've been working on expanding individual investor access to private equity since early 2013. At that time, I was at Altegris, working with Jon Sundt our CEO on selling our company. A former co-worker of

This article was written by

Ken McGuire profile picture
Ken McGuire has developed patent pending private market product innovations, which include both novel investment product structures and enabling technology, known commercially as the Aditum Aqueduct. Components of the which include: • a private markets master fund with an indefinite investment horizon, engineered to minimize liquid assets on hand, • investor selectable approaches for managing liquid assets, eliminating both cash drag and the need to over-commit, and• expanded liquidation opportunities for both institutional and individual investors.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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