Please can someone who writes about 'democratising' private markets remember the many billions of dollars in listed closed end funds investing in private markets. From BDCs (private credit), to listed private equity managers and listed private equity funds across multiple markets across the world, this option has existed for retail investors for decades. The question I would raise is why the ELTIF is a superior structure than a freely-tradable investment company?

The real issue is many of these trade at discounts to their stated NAV. Private equity managers are less keen to see that the market is sceptical of their fees, structures and valuation and so want a locked-up vehicle to sell to unsophisticated retail investors. You could resolve the overtrading issues by setting up accounts which you buy liquid equities, but not allow investors to make any trading decisions on them for five or ten years. Good luck marketing that to investors and regulators...