Steven Richman Discusses Retailization Risks in Private Equity Law Report

Private Equity Law Report featured Seyfarth Institutional Investor chair Steven Richman in its February 5 article, “Protective Measures Institutional Investors Can Adopt to Mitigate Risks of Retailization.” The article, the final piece in a three‑part series, takes a deeper look at how accelerated retailization is transforming private equity fund operations and highlights the legal and structural safeguards institutional investors should consider in response.

Richman spotlighted the uncertainties around expense allocations and the need for greater transparency as managers expand into the retail space, noting:

“Many expect the cost of putting in place and managing the retail fund to be borne by the retail fund, and not separately charged as a shared partnership expense that institutional investors will have to help shoulder. But it's going to take transparency, and people paying close attention to expense reporting, to ensure that is actually the case.”

He further cautioned that for some managers, particularly mid‑market firms, the pressures of retailization may create downstream challenges for existing private fund investors.

The full article is available here.