10 Ways to Invest in Private Markets
Private markets are no longer reserved just for institutions and ultra-wealthy families. Accredited and qualified investors now have more ways than ever to access opportunities outside traditional stocks and bonds. But with so many options, where do you start?
In this post, we’ve grouped the 10 most common ways to invest in private markets into three levels: Entry, Intermediate, and Advanced, so you can see where you might fit based on eligibility, minimums, and experience.
Entry-Level Access (Lower Minimums, More Accessible Platforms)
1. Online Platforms & Syndicates
Online platforms provide access to curated private market deals and syndicates, making it easier for individual investors to participate in opportunities that were once limited to institutions.
Examples: AngelList, Carta, Republic.
Eligibility: Usually, it requires Accredited Investor (AI) status at a minimum.
Pros: Lower minimums (sometimes $5K–$25K), curated access, user-friendly platforms.
Cons: Quality varies, fees may be higher, diligence falls on the investor.
2. Secondary Marketplaces
Secondary markets allow investors to purchase shares from existing shareholders, providing a pathway to late-stage companies.
Examples: EquityZen, Forge, Hiive.
Eligibility: AI required at minimum; minimums ~$10K–$25K.
Pros: Access to late-stage companies, potentially shorter path to liquidity.
Cons: Pricing is opaque, transfer restrictions, and still illiquid.
3. Retail-Friendly Private Equity Funds
This is a type of investment vehicle designed to let individuals (not just institutions) invest in private equity.
Examples: Wealthfront Private Equity Fund (upcoming), interval/evergreen PE funds.
Eligibility: AI required.
Pros: Lower minimums (as low as $5K), professional management, simplified access.
Cons: Fees, limited liquidity, still long-term strategies.
Intermediate Access (Moderate Minimums, Higher Risk/Reward)
4. Special Purpose Vehicles (SPVs)
SPVs are an increasingly popular way to pool investor capital into a single private company, making access more straightforward and streamlined.
Eligibility: AI status at a minimum; SPVs structured as larger or more complex private funds may require QC status. Minimums ~$25K–$50K.
Pros: Targeted exposure to single companies, pooled costs, streamlined access.
Cons: Illiquid, quality depends on the sponsor, and still high risk.
5. Angel Funds / Angel Groups
Angel funds pool capital from multiple investors to invest in early-stage startups. These funds allow investors to diversify across several high-potential companies while leveraging the expertise of experienced angel investors.
Examples: Tech Coast Angels, Golden Seeds.
Eligibility: Typically at least AI; minimums ~$25K–$50K.
Pros: Diversification across early-stage startups, access to very high-growth potential.
Cons: High failure rates, long horizons, returns highly variable.
6. Direct Investments
For investors seeking hands-on involvement, direct investments let you put capital directly into a private company.
Eligibility: Usually AI; sometimes exemptions for friends-and-family rounds.
Pros: Hands-on involvement, potential for outsized returns.
Cons: Extremely high risk, very illiquid, concentrated exposure.
7. Private Credit & Debt Funds
If you prefer income-focused investments, private credit funds lend directly to companies, offering interest returns outside public bonds.
Examples: Blue Owl Capital, Golub Capital.
Eligibility: Mostly AI, sometimes QC; often $100K+ minimums.
Pros: Income focus, less volatility than equity.
Cons: Credit risk, long lock-ups, limited transparency.
8. Real Assets & Real Estate Funds
Real assets funds let investors gain exposure to tangible investments like real estate, infrastructure, or natural resources.
Examples: CrowdStreet, Fundrise.
Eligibility: Typically AI, sometimes QC; often $100K–$250K minimums.
Pros: Tangible assets, potential inflation hedge, income potential.
Cons: Cyclical risks, high minimums, illiquidity.
Advanced Access (High Minimums, Institutional Style)
9. Private Equity & Venture Capital Funds
If you want a professionally managed approach to investing in multiple private companies, private equity and venture capital funds are the traditional route.
Examples: Blackstone, Sequoia Capital.
Eligibility: Accredited Investors; many require Qualified Client (QC) or Qualified Purchaser (QP). Minimums often $250K+.
Pros: Diversification, access to exclusive deals, and professional management.
Cons: Long lock-ups (7–10 years), limited transparency, very high minimums.
10. Fund-of-Funds & Co-Investments
Fund-of-funds offer diversified exposure across multiple private equity or venture funds with higher fees, while co-investments provide direct access to single deals with lower fees but greater concentration risk, both typically for sophisticated investors.
Examples: HarbourVest, Pantheon.
Fund-of-Funds: Diversify across multiple managers with one ticket.
Co-Investments: Invest directly alongside PE/VC funds in single deals.
Eligibility: Sometimes AI. Typically QC/QP; $250K–$1M minimums.
Pros: Diversification (fund-of-funds) or reduced fees (co-investments).
Cons: Double fees (fund-of-funds) or concentration risk (co-investments).
Final Thoughts
Private markets offer unique ways to grow and diversify wealth beyond traditional investments, but accessibility varies.
Easiest entry: Online Platforms like EquityZen, Hiive, Forge, and Wealthfront.
Intermediate: SPVs, angel funds, private credit, and real assets.
Advanced: Traditional PE/VC funds, fund-of-funds, and co-investments.
Before investing, consider your eligibility (AI, QC, or QP), your risk tolerance, and how private markets fit into your overall portfolio.
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