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Why Most Alternative Investments Are Restricted to Accredited Investors

Alternative Investments • Beginner Investing • 6 min

Nearly every alternative investment covered elsewhere in this module — hedge funds, private equity, venture capital, most real estate syndications, private credit — shares one legal gatekeeper in common: accredited investor status. An accredited investor is a specific, SEC-defined regulatory classification, historically centered on meeting certain income or net worth thresholds, that permits an individual to invest…

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