02:35 PM EDT, 06/10/2025 (MT Newswires) -- Moody's (MCO) said that Wall Street's increasing efforts to market private funds to retail investors may pose risks to the broader financial system

In the coming months, competition is expected to heat up, and this shift represents a major growth opportunity, "but rapid growth within this still relatively opaque market also carries systemic implications," Moody's said Tuesday in a report.

"In volatile markets, retail investors may run for the exits, which would exacerbate liquidity needs and the risk of potential mismatches between a product's available liquidity and what investors are expecting," the report said.

"If growth outpaces the industry's ability to manage these complexities, such challenges could have systemic consequences," the report said.

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