On September 30, 2026, the SEC issued a package of proposals for expanding “responsible retailization of private markets.” Most notable among them are proposed amendments to permit registered funds, and certain private funds, to charge performance fees (Performance Fee Proposal), comments on which are due on December 7, 2026. By making it more lucrative for private fund managers to offer certain registered funds, the hope is that a flood of new funds will be launched that will subsequently create more private market investment options for retail investors. This first article in a two-part series details the relevant provisions of the Performance Fee Proposal, including which are most impactful, downstream effects on the private funds industry and what fund managers should expect going forward. The second article will analyze the SEC’s five notices on new exam- and credential-based ways for individuals to qualify as “accredited investors”; its proposal to reform liquidity requirements for interval funds and enable closed-end registered funds to issue multiple share classes; and some of the high-level takeaways about where the proposals fit in the SEC’s broader retailization efforts.  See “SEC Reg Flex Agenda Hints at Atkins’ Deregulatory Rulemaking Priorities” (Aug. 20, 2026).