Increasing Investor Opportunities Act

This bill would modify federal investment regulations to allow closed-end funds—publicly traded investment portfolios—to invest all or most of their assets in private investment funds. Currently, the Securities and Exchange Commission limits such investments to 15 percent of a fund's assets unless the fund only serves wealthy accredited investors. The bill would remove this restriction and prevent the SEC from limiting the sale or listing of securities for closed-end funds that invest in private funds.

The practical effect would be to give ordinary retail investors greater access to private investment opportunities through closed-end funds. Approximately 3.6 million retail investors use closed-end funds for retirement savings and investments. By allowing these professionally managed funds to invest more heavily in private securities, the bill aims to expand investment options for everyday Americans who might not otherwise qualify to invest directly in private markets. The bill also applies to business development companies, which are specialized investment vehicles that provide capital to small and medium-sized businesses.