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Regulation Score 42 Bullish

Alternative Asset Managers Press SEC to Permit Private Asset Cross-Trading

Apr 22, 2026 12:56 UTC
BX, APO
Medium term

The Alternative Investment Management Association is lobbying the SEC to remove restrictions on internal asset transfers between funds. The move aims to facilitate the integration of private assets into retirement portfolios.

  • AIMA seeks removal of SEC ban on cross-trading private assets
  • Lobbying effort includes representation for Blackstone and Apollo
  • Proposed change intended to increase private asset use in retirement funds
  • Industry argues for improved efficiency in asset transfers
  • SEC's willingness to alter the current regulatory framework remains unknown

Major alternative asset managers are seeking a regulatory shift that would allow the buying and selling of private assets between funds managed by the same firm. This practice, known as cross-trading, is currently prohibited under existing Securities and Exchange Commission (SEC) rules. The Alternative Investment Management Association (AIMA), which represents industry giants including Blackstone Inc. and Apollo Global Management Inc., is urging the regulator to lift the ban. According to internal communications shared with members, the industry group argues that relaxing these restrictions is essential for the evolution of the market. A primary objective of this request is to boost the adoption of private assets within retirement accounts. By allowing cross-trading, managers believe they can more efficiently move assets between vehicles, potentially making private equity and credit more accessible to a broader range of investors. While the industry push is clear, the outcome remains uncertain. It is currently unclear whether the SEC has the appetite or the regulatory leeway to modify these specific rules. If granted, however, the change could significantly streamline portfolio optimization for the world's largest alternative investment firms.

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