Skadden partner Daniel Michael spoke with the Financial Times’ Ignites about the opportunities and challenges created by the SEC’s “responsible retailization” proposals, including the valuation and liquidity management issues private managers would need to confront when pursuing retail investors.
Mr. Michael, a former chief of the SEC Enforcement Division’s Complex Financial Instruments Unit, said that the more often investors can trade a fund, the more intramonth valuation matters, so controls on pricing between month-end reviews would have to tighten.
He added that the proposed changes to the interval fund rule create “a little more freedom to hold assets that may not be liquid [as well as] greater freedom to provide liquidity,” which “if not managed correctly ... can be in tension.”
Mr. Michael described the retail market as “possibly one of the largest sources of available capital in this country.” He continued, “It comes with a price tag. Is the price tag worth it? It depends on the issuer, but I certainly see a significant opportunity.”
Read the article: “Private Managers Face High Threshold to Retail Riches,” October 14, 2026.