From The Motley Fool · Motley Fool Staff · · 2m
Private Assets Coming to Your Portfolio
New SEC rules make private assets accessible to retail investors.
In brief
New SEC rules make private assets accessible to retail investors. SEC rules expand private assets access to retail investors through accredited investor criteria and performance fee adjustments. Originally reported by The Motley Fool.
Accenture Earnings
Accenture shares rose 19% as they beat earnings expectations with revenue and earnings both exceeding forecasts.
“They said fiscal 2027 came in also slightly higher than Wall Street expectations”
Accenture Performance
Accenture reported 5% revenue growth year over year with operating margins at 15.8% and strong shareholder returns.
“The operating margin did go up slightly year over year, so 15.8% operating margin”
Accenture Valuation
Accenture stock trades at 14 times earnings, down from 30s two years ago, indicating a value opportunity.
“They had dipped below 10 times expected earnings”
Private Assets Expansion
SEC rules expand private assets access to retail investors through accredited investor criteria and performance fee adjustments.
“There were three core SEC rules to make private assets available to everyone”
Accredited Investor Changes
New rules allow professional licenses as a way to demonstrate competence for accredited investor status.
“They want to look at some professional licenses as a way to show competence to be an accredited investor”
Performance Fee Adjustment
SEC raised the upper limit of performance fees for registered investment advisors to 20%.
“They have up the upper limit of a performance fee that a registered investment advisor can get, I think it's gone up to something like 20%”
Private Fund Flexibility
New rules give private funds more flexibility for redemptions without quarterly restrictions.
“Giving more flexibility to private funds, for redemptions related to not having to give out so many on a certain quarter”
AI Impact on Consulting
AI is changing consulting business models with Accenture focusing on outcome-based fixed price projects.
“65% of new bookings came from outcome-based fixed price projects”
Investor Advice
Retail investors should focus on solid 10-15% annual returns rather than early-stage private investments.
“For the average investor, it isn't better to not have access to early-stage companies”
Portfolio Construction
Investors should maintain a core portfolio of 20-30 stocks with 5-10% allocated to speculative assets.
“If that is coming from perhaps Motley Fool literature, remember that is generalized advice”
Private Market Risks
Private markets carry higher risks with less transparency and more complex term sheets than public markets.
“You don't have all of the information that you have with a publicly traded company”
AI Investment Concerns
AI adoption may reduce consulting hours and create new challenges for private market investments.
“AI is changing so many things out there, and I'd say that Accenture's business, there are still some questions that remain unanswered”
Market Reaction
Accenture's market reaction to earnings shows investor confidence despite modest growth projections.
“They beat expectations. Expectations were dismal”
Private Market Growth
Private markets are growing rapidly with SpaceX and OpenAI raising significant funds before going public.
“We hear things now like series M funding rounds, 12, 13 private funding rounds”
Investor Caution
Retail investors should be cautious about private market investments due to higher risks and less transparency.
“I hate to be so cynical, but I just don't think it's going to be the non-whales that are getting the best deals here”
Future Outlook
SEC rules aim to balance private market growth with retail investor accessibility and risk management.
“The rules to me seem a lot like incenting Wall Street to go out of their way to bring retail investors to the fore”
The headline
SEC rules expand private assets access to retail investors through accredited investor criteria and performance fee adjustments.
