What Is Private Equity and Can Accredited Investors Access It?
Private equity refers to ownership stakes in companies that are not publicly traded. Rather than buying shares on a stock exchange, private equity investors commit capital to funds or deals that acquire, grow, or restructure private companies over a multi-year period. For accredited investors, it represents a growing segment of the alternatives marketplace.
Types of Private Equity
• Buyout funds: Acquire controlling stakes in mature companies — often using leverage — with the goal of improving operations and selling at a higher valuation.
• Growth equity: Invest in established, growing companies that need capital to expand without giving up a controlling interest.
• Venture capital: Invest in early-stage companies with high growth potential. Higher risk, potentially higher reward.
• Private credit: Lend directly to private companies and generate income through interest payments — a related but distinct category.
Why Accredited Investors Are Paying Attention
Over the past decade, more companies have chosen to stay private longer — meaning the growth phase that once happened in public markets is increasingly happening before a company IPOs. Investors who want exposure to that growth need access to private markets.
Private equity has also historically shown lower correlation to public market volatility, which can improve portfolio diversification.
What Accredited Investors Need to Know
• Illiquidity: Capital is typically locked up for five to ten years, with distributions occurring as investments are exited.
• Minimums: Typically range from $25,000 to $250,000 or more depending on the fund.
• Fees: Management fees and carried interest are standard — understanding the full fee structure matters.
• Due diligence: Sponsor track record, fund strategy, and portfolio construction should be evaluated carefully before committing.
Important Risks to Understand
Private equity involves illiquidity, concentration risk, and the possibility of losing principal. Returns are not guaranteed and can vary significantly across funds and vintages.
Accredited investor status provides access to these opportunities — it does not guarantee suitability. Every investment should be evaluated in the context of your broader financial plan.
How True North Private Investments Helps
At True North Private Investments, we help accredited investors access curated private market opportunities — including private equity and private credit — through our weekly-updated alternatives marketplace. We evaluate sponsors and structures so investors have a clearer picture before they commit.
Final Thoughts
Private equity is not right for every investor — but for accredited investors with the right time horizon and risk tolerance, it can offer meaningful diversification and return potential beyond what public markets provide.
Schedule a conversation with True North Private Investments to explore current private equity opportunities.