Private market investment managers (including private equity and private credit) have ambitious growth goals, and many are targeting retail investors as an untapped source of capital for new offerings.

Attracted by the historic returns and diversification offered by alternative investments, retail investors may be poised to answer that call. However, private market investment managers should be aware the standard retail investor has different expectations compared with institutional investors, including simplified tax reporting.

While past performance does not guarantee future results, meeting retail investors’ tax reporting expectations could lay the groundwork for ongoing relationships and, ultimately, an influx of investor capital. As such, private market investment managers can proactively simplify their tax reporting by revisiting their legal entity and investment structure.

SIMPLIFYING TAX REPORTING

Many retail investors are used