Wall Street Giants Push SEC to End Inter-Fund Trading Ban on Private Assets

A coordinated lobbying effort by some of Wall Street's largest alternative asset managers is pushing the Securities and Exchange Commission to lift restrictions blocking private asset transfers between funds managed by the same company, industry sources familiar with the campaign confirm.

At the center of the push is a rule that prevents funds under common oversight from buying and selling private assets to one another—a practice known as inter-fund trading. Managers contend this regulatory barrier stunts the development of secondary markets for private holdings and creates friction for retirement plan administrators considering adding private assets to 401(k) and IRA menus. Proponents argue that easing these constraints would open more viable pathways for ordinary investors to access historically exclusive private market instruments through workplace retirement accounts.

The timing of the campaign aligns with intensifying competition among mega-managers to capture retirement-plan market share. A senior official at one major firm noted that without clearer trading flexibility, the operational cost of maintaining private asset positions within regulated retirement structures remains prohibitive. The SEC has not committed to rule changes but has indicated willingness to review comments on existing fund-to-fund transaction frameworks. Any shift would face scrutiny from investor advocates concerned that increased inter-fund activity could introduce conflicts of interest or reduce transparency for retail participants.