Not-So-Private Equity’s Retail Push Irks Traditional Clients

Some of the world’s biggest investors in private equity are worried they could lose their special status as thousands of retail investors get invited into an asset class that had been reserved for sophisticated clients.

Institutions such as pensions and endowments are increasingly concerned their negotiating power may be sapped as private equity funds allocate more money to doctors, lawyers and other everyday customers who pay full freight. Other big-money investors are asking how much of each private equity deal they’ll have to share with funds marketed to individuals, leaving less available for themselves.