Davis Polk partner Chris Healey was quoted in Ignites discussing the potential expansion of the SEC’s expedited co-investment relief to include open-end funds. 

“The 1940 Act’s restrictions on a regulated fund co-investing with affiliated funds and the liquidity rules for open-end funds address two very distinct issues,” Chris said. “The SEC staff seems to have tied these two concepts together and taken a view that assets acquired in a co-investment transaction typically are illiquid, so mutual funds should not be able to rely on co-investment relief.”

“However, that is not consistent with the ‘40 Act liquidity rules,” he added.

“ICI Presses SEC on Private-Asset Access for Open-End Funds,” Ignites (January 28, 2026) (subscription required)

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