Well… PE firms, even the largest of them like Blackstone, Bain, or KKR, just aren’t big enough to be a systemic risk. Furthermore, these firms only take money from accredited investors, who in theory should know the risks. These places are not taking money from mom and pops. Unless you know the principles at these firms, you probably need a $10M+ net worth to be let in. The SEC really doesn’t need to look out for these folks.