The Monetary Authority of Singapore (MAS) has unveiled a proposed regulatory framework designed to enable retail investors to access private market investment funds. This initiative, announced on 27 March 2025, seeks to broaden the investment landscape for retail investors, who currently have limited access to private equity, private credit, and infrastructure investments.
MAS has observed a rising interest from retail investors in private market investments, alongside a willingness from experienced industry players to offer such products. In response, MAS has proposed the Long-term Investment Fund (LIF) framework, which adapts existing fund requirements to better suit the characteristics of private market investments and the needs of retail investors.
The framework outlines two potential fund structures. The first is a Direct Fund, allowing for direct private market investments with greater transparency of underlying assets. The second is a long-term investment fund-of-funds (LIFF) structure, which invests in other private market funds, leveraging the expertise of LIFF managers to select and monitor a diversified portfolio.
MAS is consulting on the necessary regulatory safeguards for each structure and is seeking feedback on the types of private market investment assets suitable for retail investors. The proposed framework aims to foster a robust market for retail private market investment funds, offering investors more options for diversified portfolios and potentially paving the way for the listing of such funds.
Interested parties are invited to submit their views on the consultation paper by 26 May 2025.
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