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Reasons Private Markets Feel Unreachable
Private markets have always felt inaccessible to everyday investors.
Many investors cant meet these requirements and therefore have not been able to access some private market investments.
High Minimum Investments
Private market investments often come with very high minimum investments.
Whether itsreal estate syndicationor private lending, some investments may have a $50,000 minimum or higher.
This makes them out of reach for most everyday investors.
You would need access to private banking or a family office financial team to invest in manyprivate market investments.
And while there are some platforms now available, you still cant access many alternative investments through traditional brokers.
Here are afew popular private market investmentsthat you may be able to participate in.
Private Credit
Private credit allows you to lend money to borrowers directly essentially making you the bank.
Borrowers are typically small and medium-sized businesses that need to raise capital forreal estate orother business expenses.
If a borrower fails to repay the loan, you may end up losing money.
Private credit can be accessed on some alternative investing platforms such asYieldstreetorRealtyMogul.
Platforms likeFundriseallow you to invest as little as $500 and own a piece of a portfolio of properties.
But everyday investors can now access venture capital investing in startups through platforms likeWefunder.
Minimum investments will still be high, though: around $10,000.
Is Private Market Investing Worth It?
Investing in private markets has a few advantages.
This can help increase diversification and lower your investment risk.
And if an investment doesnt go well, you could lose all of your investment capital.
Private market investing may be a good option for some investors and is more accessible than ever.
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