2 days ago
- Business
- Wall Street Journal
Moody's Sounds Alarm on Private Funds for Individuals
Wall Street's push to sell private-equity and private-debt funds to individual investors risks overheating financial markets and backfiring on firms launching the funds, according to Moody's MCO -0.70%decrease; red down pointing triangle Ratings.
Private-fund managers have turned to individual, or retail, investors to offset a decline in money raised from traditional clients such as pensions and endowments. But in a report viewed by The Wall Street Journal, Moody's warned that selling funds to retail clients will introduce new risks to private-asset managers, including 'reputation loss, heightened regulatory scrutiny and higher costs.'
