Davis Polk partners Chris Healey and Greg Rowland were quoted in FundFire discussing a proposal by the North American Securities Administrators Association to cap the level of non-traded alternative funds that individual investors can have in their portfolios at 10%.  

The article noted that this proposal is helping to fuel a significant shift where more managers choose to launch private placement BDCs and REITs.

“Advisor platforms that face compliance and operations headaches from concentration limits are also driving the shift,” Chris said. “These intermediaries are telling [managers], ‘We aren’t considering the blue-sky product anymore.’”

“The SEC is also showing greater openness to ease regulations around private placement products,” Greg added. “That’s definitely helping people to focus on private BDCs.”

“State Regulators Resurrect 10% Cap on Investor BDC, REIT Holdings,” FundFire (May 21, 2025) (subscription required)

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