SEC grants G-X Private Equity, Goldman Sachs Asset Management fee exemption

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Ashutosh Sureka

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SEC grants G-X Private Equity, Goldman Sachs Asset Management fee exemption — SEC grants fee exemption

The U.S. Securities and Exchange Commission has granted G-X Private Equity and Goldman Sachs Asset Management, L.P. an exemption that allows certain closed-end funds and business development companies to pay advisory fees in common stock. The order takes effect immediately after no hearing was requested following the agency's May 7, 2026 notice of filing.

Highlights

G-X Private Equity and Goldman Sachs Asset Management receive SEC exemption allowing adviser fees paid with common stock under specified conditions.
The original application was filed April 3, 2026, amended May 6, 2026, and a public notice was issued May 7, 2026, with no hearing requested.
SEC finds the grant consistent with investor protection and public interest, enabling equity-based compensation in registered closed-end and business development companies.

Regulatory order clears stock-based fee payments

As reported by the U.S. Securities and Exchange Commission, the exemption is issued under Section 6(c) of the Investment Company Act of 1940 from Section 23(a)(1) of the same law. The relief permits certain registered closed-end management investment companies and business development companies to compensate advisers with shares of their common stock, subject to the conditions set out in the application as amended.

G-X Private Equity and Goldman Sachs Asset Management, L.P. file the original application on April 3, 2026, and submit an amended version on May 6, 2026. The commission then issues a notice of filing on May 7, 2026, under Investment Company Act Release No. 36144, giving interested parties an opportunity to request a hearing before the order becomes final.

Investor protection finding and market relevance

No hearing request is filed, and the commission does not order one. On that basis, the matter is considered and the agency finds that granting the exemption is appropriate in the public interest, consistent with investor protection, and aligned with the policy objectives of the Act.

The order is granted under delegated authority by the Division of Investment Management, with Assistant Secretary Sherry R. Haywood signing for the commission. For private markets and fund structures, the decision provides a regulatory path for using equity rather than cash for certain advisory compensation arrangements within the affected investment vehicles.

Our earlier coverage of the Labor Department’s proposal to allow alternative assets in 401(k) plans outlined a growing political dispute over whether private equity, digital assets, private credit and similar products should be offered to everyday retirement savers. Lawmakers opposing the change warned that higher fees, complexity and volatility could raise risks and costs for workers’ long-term savings, while also flagging potential conflict-of-interest concerns tied to the broader policy push.

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