Who can Invest in Private Markets - Goldman Sachs Investment University

Foundations

Who can Invest in Private Markets

May 2025 | 2 minute read

Author(s)

Daniel Murphy Head of Portfolio Solutions for Alternatives Capital Formation

Accredited Investor

Accredited Investors meet the financial threshold to access Regulation D investments.

These investments are not registered with the SEC (i.e. private funds).

For Individuals

Income > $200k (or $300k with spouse) in each of the prior two years, and reasonably expects the same for the current year
OR
Net worth > $1m, excluding the value of a primary residence

For Entities

Total assets > $5m as a private business development company or organization
OR
Accredited investors exclusively own the entity, and the entity may not have been formed for the exclusive purpose of investing in a fund

Qualified Client

Qualified Clients meet the financial threshold that permits investors to access a larger array of sophisticated and unregulated investments.

Qualified clients are also accredited investors.

For Individuals or Entities

Net worth > $2.2m, individually or jointly with a spouse, excluding the value of a primary residence
OR
Maintains > $1.1m in AUM¹ with an investment advisor

Qualified Purchaser

Qualified Purchasers meet the financial threshold that exempts private funds from registering with the SEC with a total of 2,000 or fewer of these clients.

Qualified purchasers are also qualified clients.

For Entities

A trust sponsored and managed by qualified purchasers
OR
An entity owned entirely by qualified purchasers

For Individuals or Entities

Investments > $5m, excluding the value of a primary residence or property used for business
OR
Investments in private capital
>$25m on its own account or on behalf of qualified purchasers

Source: Goldman Sachs Asset Management, Strategic Advisory Solutions. As of March 2024.

¹AUM refers to assets under management.

For illustrative purposes only.

Glossary

A Business Development Company (BDC) is an investment structure, a closed-end investment company, that invests in equity and/or debt of a company and must invest at least 70% of its assets in eligible companies. These include private companies as well as public companies with market values of less than $250 million. These are traded, private and non-traded BDCs.

Risk and General Disclosures

THIS MATERIAL DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY JURISDICTION WHERE OR TO ANY PERSON TO WHOM IT WOULD BE UNAUTHORIZED OR UNLAWFUL TO DO SO.

All investing involves risks. An investment in private equity investing is not suitable for all investors. Investors should carefully review and consider the potential investments, risks, chargers, and expenses of private equity before investing. Private equity investments are speculative, highly illiquid, involve a high degree of risk, have high fees and expenses that could reduce returns, and subject to the possibility of partial or total loss of capital. They are, therefore, intended for experienced and sophisticated long-term investors who can accept such risks.

This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities.

Prospective investors should inform themselves as to any applicable legal requirements and taxation and exchange control regulations in the countries of their citizenship, residence or domicile which might be relevant.

This material is provided for educational and informational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. This material is not intended to be used as a general guide to investing, or as a source of any specific investment recommendations, and makes no implied or express recommendations concerning the manner in which any client’s account should or would be handled, as appropriate investment strategies depend upon the client’s investment objectives.

This material is provided for informational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities.

Confidentiality

No part of this material may, without Goldman Sachs Asset Management’s prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorized agent of the recipient.

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