5 Things to Know Before You Invest in Private Equity

A substantial pool of assets is necessary

Generally, only qualified purchasers can invest in private equity investments. Qualified purchasers refers to investors who have at least $5 million or more in investable assets.

If you fit that criteria, keep in mind that these equity funds also have a high minimum investment requirement, ranging anywhere from $250,000 to $10 million or more. In other words, you’d need a large pool of assets to invest here in order to achieve optimal diversification within a portfolio.