Though private equity has historically only been accessible to institutional investors, pensions, endowments and accredited investors, a shift in the definition of accredited investor has expanded access to private equity investing by retail investors, according to an op-ed by CNBC.
With sophisticated funds comes sophisticated finances, however, and this shift poses the question of whether retail investors are prepared to confront the risks and complications of private equity.
Private equity is an attractive investment opportunity, due to its traits of diversification and higher returns. Often through interval funds, retail investors can be seen as a source of capacity for private equity firms, as they provide significant capital, says CNBC. Lacking exclusivity, these structures offer access to private markets, but not without difficulties.
Navigating private equity presents significant obstacles, including no requirements to disclose operations, financials or l
