What Types of Investments Might Interest an Accredited Investor?

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Accredited Investors — due to their high net worth, income, or professional experience — have access to a wider range of investment opportunities compared to regular investors. Here are some of the investments that Accredited Investors often look for:

  • Private Equity: This involves investing directly into private companies. These investments are not publicly traded and require a longer investment period.
  • Hedge Funds: These are alternative investments using pooled funds that employ different strategies to earn active return, or alpha, for their investors.
  • Venture Capital: This is a type of private equity and a form of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.
  • Real Estate Investment Trusts (REITs): These are companies that own, operate, or finance income-generating real estate. Accredited investors often have access to private REITs.
  • Angel Investing: This involves providing capital for business startups, usually in exchange for convertible debt or ownership equity.
  • Private Placement Offerings: These are securities that are not sold through a public offering, but rather through a private offering, mostly to a small number of chosen investors.
  • Commodity Pools: These are private investment structures that combine investor contributions to trade commodities futures and options contracts.
  • Limited Partnerships: These are partnerships where one or more partners have limited liabilities, and they’re often used for investments in a variety of areas, including real estate and oil and gas.
  • Peer-to-Peer Lending: P2P lending, also known as marketplace lending, cuts out the bank middleman and allows investors to pocket more of the interest paid by borrowers.
  • Other Alternative Investments: Any asset class other than cash, stocks, or bonds is considered an alternative investment. Some common alternative investments are cryptocurrencies, gold, oil, and agricultural products.

Check out the criteria an individual must meet to be considered an Accredited Investor.

Learn why Accredited Investors are interested in alternative investments.

Read about some of the most common professions of Accredited Investors.

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